How to Improve Credit Scores Legally

Your credit score, also known as your FICO rating, is a three-digit number based on the items in your credit report, such as collection accounts, credit cards, lines of revolving credit and home mortgages. Lending agencies and businesses use this score, which ranges from 300 to 850, to determine your credit risk, or the likelihood that you will repay your debts. A top credit score will qualify you for the best rates and terms on credit cards and loans, while a low score can prevent you from qualifying for a credit card, buying a home or even getting a job.

Instructions

1

Contact TransUnion, Equifax and Experian, the three major credit bureaus, to request copies of your credit reports and credit scores. You can do this either online by visiting the companies' websites or by calling the bureaus to request credit reports by mail. You will have access to your reports and scores instantly online, while it will take a few weeks to receive the items by mail.

2

Analyze your credit reports. Look for your score, which usually is at the top of the report, as well as positive information such as nondelinquent credit cards and paid-up student loans, along with negative information like collection accounts and judgments. Make sure all information is accurate and up to date.

3

Call the credit bureaus and advise them of any inaccurate or out-of-date information on your reports. Inform them of information such as incorrect addresses, inaccurate account status, such as paid-off accounts showing as "unresolved," and incorrect account dates.

4

Contact your account holders, such as credit card companies and collection agencies, and inform them of incorrect information like false accounts, incorrect status and erroneous dates. Ask them to remove or change the incorrect information.

5

Develop a plan to pay down your credit card debt, as well as pay off any collection account or judgments, over a period of one to three years. According to CNN Money, carrying a large balance on your credit cards will drag down your credit score. Additionally, unpaid collection accounts will also damage your score.