How to Improve Bad Credit And Slow Credit

You can re-build a strong credit profile with these tips.

Instructions

1

Determine your current credit standing.
You'll need a copy of your credit report from the three major credit bureau's. Equifax, Experian and TransUnion will typically have credit reporting info and payment data for most of your credit cards, mortgages, auto loans, store charge accounts, bank loans and public records. Having an idea of where you stand will position you to take action.

2

Obtain a tri-merged credit report.
A tri-merged credit report will provide data from all three credit bureau's on a single report. Ordering a tri-merged credit report will save you time and money because you will not have to wait for info from three different sources.

3

Prepare a plan to improve your credit.
After receiving a copy of your credit report, you should take a good look at your account details. Highlight or make a note of any items that you notice which are incorrect. This will be your first step to improving bad credit. Many times, bad credit is the result of flawed data. It is estimated that greater than 70% of all credit reports contain errors. Each of your creditors that supply information to the credit bureau's are required by law to show their contact info. Contact the creditors with adverse or slow payments to seek arrangements to settle bad debts. Many times you can offer to settle past due debt at 30% - 50% of the balance owed.

4

Make a commitment towards a positive credit history.
You can improve your credit by contacting each of your creditors and drafting a plan to get back on track. Do not promise to pay debts that you may not be able to honor. Take your time and decide that you will improve your credit one bill at a time or one bill per month. The key is to decide that bad credit is not for you and to take positive steps to build good credit.