How to Improve Delinquent Credit

Delinquent credit not only helps you rack up interest charges on the money you owe, but it also damages your credit score. A lower credit score can limit your future borrowing options, because lenders will charge you an even higher interest rate or deny you credit altogether. To improve your delinquent credit and raise your credit score, you must make an effort to practice better payment management. In some cases, contacting your creditors may help as well.

Instructions

1

Pay off your debts as soon as possible. If you cannot pay your full balance, at least make the minimum payment so that your creditor will report your account as being current to credit agencies. When you don't pay on time, your credit report shows a late payment, which lowers your credit score.

2

Contact your creditors if you are having trouble making the minimum payments. They may be willing to work with you to set up an alternate payment schedule if you contact them early.

3

Limit the amount you owe on each line of credit. MSN Money recommends that you not owe more than 30 percent of your credit limit on your credit cards.

4

Dispute incorrect information on your credit history by writing to the credit bureau and including copies of any proof of your claim. If negative information that is not yours is removed from your credit report, your score may increase and you may be able to get your interest rate lowered, making it easier for you to meet your minimum payments.

5

Make future payments on time. Your payment history accounts for 35 percent of your FICO credit score and more recent payments--either made on time or delinquent--count more heavily than older payments.