How To Fix Your Credit Score

If you’ve been denied a credit card or loan, it may because of a bad credit score. When applying for credit, a score below 620 may result in denial of your application. Repairing bad credit is slow but it can be done. You have to have discipline and above all patience.

First, get a copy of the credit report . You can get a free credit report each year from each of the major credit bureaus . Go online to , annualcreditreport.com. This website was setup as part of a settlement between the government and the major bureaus . Review the report, and if you find errors, contact the credit reporting company and begin to get any bad information corrected .

If the source is simply late payments, car repossession, default on a loan, etc. , begin paying immediately to start bringing the score up . If possible, stop using your credit cards until you have them paid off. If you absolutely must, use one with a low or no balance and pay off the card when the statement comes.  If possible, make higher than monthly minimum payments . Get those cards paid off as soon as it can be done . If you are in serious trouble, you may be able to work out a plan with your credit card company.

Don’t make your payments late. Be consistent with your payments. Once a card is paid off, do not close the account . Instead, leave it active but unused . Keeping the card active helps to build credit history. Do not apply for additional cards or loans . When you apply for new credit, there is what’s called a credit inquiry on the credit report, which can negatively impact your score.

Another move to avoid is consolidating cards . Spreading your debt out, so that you have lower balances on more cards is actually better.

Being consistent, having a firm will, and following these methods will increase the number and fix credit score slowly but steadily .