How to Fix Your Credit in 6 Months

Your credit record is important. It's checked by lenders every time you apply for credit. A poor credit record results in credit applications being declined: The more you apply and get declined, the worse your credit record is. Before applying for credit, check your credit records.

There are three credit reporting bureaus: Equifax, Experian and TransUnion. Together they sponsor AnnualCreditReport.com, the only official website where you can get all three credit reports for free once a year. Getting your credit record is the best way to start fixing your credit in six months.

Instructions

1

Apply online to AnnualCreditReport.com (see the Resources section). It's fast, simple and free. Credit records can be viewed instantly. It's the quickest way to start to fix your credit in six months. Select your state. Click "Request Report." Provide your details in the online application form: A previous address is required if you have lived in your current home for less than two years. Follow the online instructions. Wait for your identity to be verified. Follow the link to set a password. Click "Submit." You can view your records instantly.

2

Check your reports. Make sure they are accurate. Errors should be reported immediately to the lender and to the credit reporting bureau. Errors negatively affect your credit. They can be rectified in two weeks, helping to fix your credit in under six months.

3

Check your credit record payment history on each line of credit. If it shows missed or late payments, your credit is affected. Get your payment history up to date: Pay missed or late payments as soon as possible. Your credit record will be updated once the arrears are cleared. Ensure you pay future amounts on time. Keeping up regular timely payments will help to fix your credit.

4

Check which credit cards are near or over their limits. Lenders can become cautious at this point; it indicates financial difficulty. Your credit rating is affected. Immediately pay off any amounts that exceed your agreed limit.

Reduce outstanding credit to 50 percent or less as soon as possible. Keeping outstanding debt on a credit card to 50 percent or less shows lenders that you are responsible in your borrowing. You get rewarded by your credit record improving.