How to Fix Bad Credit With a Credit Repair Kit

Many companies advertise they can repair your credit score or improve your credit rating by selling you its services or a "credit repair kit," but the Federal Trade Commission warns consumers not to fall for likely scams. Attorneys for the FTC report they've never seen a totally legitimate credit repair operation. The reality is, there is not a quick fix when it comes to a person's credit rating. Instead of paying money for a repair kit, individuals can improve their credit score on their own, but it takes time and effort.

Instructions

1

Monitor your credit report. Take advantage of the free yearly credit reports offered by each of the three major credit reporting agencies. Make sure the information reported about your accounts is correct on each report, and dispute any errors by following the directions included on your report. Notify the agencies if your personal information, including the name of your current employer, is incorrect. Even small errors can affect your credit score.

2

Make notes of any negatives reported about your accounts, such as delinquencies or "charged off" statuses. Contact each creditor and ask if it's possible to have those notations removed if you have paid or can agree to pay on time for six months or longer. Inform your creditor of your intentions to improve your credit worthiness, and ask if they have any advice or payment programs that would assist you in doing so. Request a lower interest rate or to have annual fees waived. Follow up with a letter of request in writing to the address printed for "general inquiries" on your billing statements.

3

Make payments on time, and pay more than the minimum due on high-balance credit cards or loans. Refrain from using your credit cards or applying for more credit cards or loans until your debt-to-income ratio improves. Keep your credit card accounts open, even if you manage to pay them off.