How to Increase a Credit Score in Six Months

It takes years to build a credit score, good or bad, and no overnight miracle will raise a damaged or blemished score. However, you can see improvements in your score within six months, especially if your current score is below 620, which, according to CBS News, is the dividing line between what lenders consider good and bad credit. With a few simple steps, your score could improve in a short period of time.

Instructions

1

Obtain a copy of your credit report from the three major credit bureaus, Equifax, TransUnion, and Experian by completing the requested information on annualcreditreport.com, a site set up by the three bureaus that offers free copies of your credit reports every 12 months.

2

Research all three reports thoroughly and highlight any errors listed.

3

Write a letter to the credit reporting agency that listed the error, disputing the item. Provide as much information as possible. Attach a copy of your credit report with the error circled.

4

Send the dispute letter to the credit reporting agency by certified mail. If you have not received a response from the agency after 30 days, contact it in writing again.

5

Make a list of your current debts, such as credit cards or loans. Note the payment due date, minimum amount due and outstanding balance on the list.

6

Divide the list into two columns. Place any credit cards with an outstanding balance higher than a third of the total credit limit in one column, and any credit cards with a balance below a third of the total credit limit in the second column.

7

Calculate the amount of money needed to get each credit card below a third of the credit limit threshold. Divide this amount by six. This is the amount you will need to pay each month to have the credit card below the threshold in six months.

8

Pay at least the minimum balance on every card in the second column by the due date.

9

Pay the calculated amount on every card in the first column by the due date. Repeat these steps for six months.