How to Improve Your Bad Credit Score

If you have bad credit, you can improve your score with a little work. You credit score determines your ability to get approved for loans as well as the interest rates you may get on those loans and credit cards. Staying on top of your debt and getting your bills paid help improve your score, but it does take time.

Instructions

1

Get a free copy of your credit report. The national credit reporting agencies Experian, Equifax, and TransUnion are required to provide you with a free credit report every 12 months.

2

Review your credit reports. If you find any errors notify the credit reporting agency in writing. Detail the error and provide any supporting documentation you have and mail it to the credit reporting agency. The credit reporting agency has 300 days to investigate and respond to the error. If a correction is made all three credit reporting agencies will be notified.

3

Review your debt. Late payments can seriously damage your score, so make all of your payments on time. If you don't have enough money to cover these payments, call the creditor immediately and let them know your situation. They may be willing to work with you by allowing you to pay an interest only payment or to defer your payment until you are able to pay. This will avoid additional late fees and damage to your credit score. Pay off any debts that have gone to collection.

4

Keep your balances low on credit cards. Having a lot of outstanding debt can seriously damage your score.

5

Get help you need it. If you're having trouble paying off or managing your debt, speak to a credit counselor who may help you devise ways to pay your off the debt.