Repairing a bad credit score can take time and real effort. For many, it requires changing their spending habits. For others, it mandates a new savings strategy. In any case, recovering from poor credit will take some time, no matter what you do, but with concentrated effort, it's possible to see a speedier turnaround in your score.
Step 1
Request a copy of your credit report. You can do this by going to AnnualCreditReport.com and requesting a digital or hard copy of your report.
Step 2
Review the information in your credit report and report any information that's inaccurate. Call or write a letter to the credit bureau that has the inaccurate information and request that they remove it from your credit report.
Step 3
Generate new, positive credit history by opening new accounts. It can be difficult to open a new line of credit with a bad credit score, but it is possible if you shoot for credit cards intended for those with bad credit. The interest rate will be high, but you can still avoid annual fees and processing fees if you take the time to compare cards. In many cases, you will have to apply for a secured credit card, which is backed by a savings account you maintain.
Step 4
Pay your bills on time, every time. No matter what, make at least the minimum monthly payment on your credit card bills. This will show an improved responsibility for the credit you've taken out and a willingness to live within your means. If you can, pay more than the minimum amount due, to keep your debts down and to prevent owing a lot in interest.
Step 5
Receive counseling from a credit counselor or take a money management class to help you learn to better budget and manage your money. Learning new spending and saving habits will help prevent you from getting in a bad financial situation again.
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