How to Restore Your Credit Easily

Your credit score is all that matters to many businesses and financial institutions. It details your financial responsibility and history, dating back as far as you've had credit. Any time you make late payments or default on money owed, the institution reports it and your credit score drops. Even if you have a low or unsatisfactory credit score, there are things you can do to restore your credit and get back on track without filing for bankruptcy.

Instructions

1

Check your credit score for accuracy. Looking at your own credit score does not lower your score. Review the history and dispute any charges with the credit bureau. You can obtain a free credit report once a year from annualcreditreport.com (see Resources).

2

Pay down credit card debt quickly and continue paying on time. Develop a plan to pay off credit cards rather than simply making minimum payments. Simply because you have a $5,000 credit limit does not mean you should owe that amount. The more of your credit you use, the lower your credit score.

3

Use credit cards sparingly and use them to your advantage. The longer you have had a credit card, the better it looks on your credit report. Maintain old accounts and use them on occasion.

4

Pay your debt; don't move it around. Constantly transferring balances or refinancing property can save you money in the short term, but this is called revolving debt and shows up in your credit report.

5

Request "goodwill" reports from credit card companies if you have a long history. Sometimes credit card companies will remove or refrain from reporting late payments if you write or call them requesting a goodwill gesture.