The Best Way to Repair Credit and Raise a Credit Score

Tweaking your credit report and building your credit score presents a host of opportunities. If you apply for a loan, your credit score will likely be used to determine the interest rate, and some employers review an applicant's credit history before offering a position. There's no secret trick to repairing credit and raising a credit score. Oftentimes, it's simply a matter of using credit wisely and managing your finances carefully.

Instructions

1

Monitor your rating. Manage and repair your credit by ordering a copy of your credit report once a year. Take time to look through the report, and keep an open eye for wrong information or unfamiliar accounts due to reporting errors.

2

Remove reporting errors. Dispute mistakes on your credit report by writing the credit bureaus or by contacting the reporting creditors. Credit reports include the address and telephone information for creditors and the bureaus.

3

Get rid of high debts. Put away your charge cards and resolve to eliminate your outstanding debts. Pay more than the minimum, and if possible, drop a lump sum on your debts each month until you erase the balance.

4

Pay your bills on time. Organize your debts and bills, and stay on top of your due dates to avoid late payments and extra fees. Missed or skipped payments have a negative impact on credit scoring.

5

Start using credit again. Build your credit score after a bankruptcy by applying for a prepaid credit card or obtaining a small installment loan from your bank. Be prepared to pay a security deposit for the credit card, and have collateral (such as a car title) if applying for an installment loan.