How to Rebuild Your Credit Fast

Credit challenges make even the simplest tasks, such as renting an apartment or getting a job, difficult. Even if your credit is less than stellar, there are actions that can rebuild credit quickly.Your credit score is comprised of several different categories. Focusing on the areas that make up the largest chunk of your score can make a significant impact on your credit rating.

Instructions

1

Order a copy of your credit report. The first step to rebuilding credit quickly is identifying problem areas. A free credit report can be ordered through Annual Credit Report (see Resources) every 12 months. Look for errors, such as unfamiliar accounts. Also, look for a track record of late payments, high credit balances and reports of collection activity. Make a list of the areas that need improvement.

2

Create a plan for making timely payments. According to MSN Money, payment history makes up 35 percent of your credit score. Simple actions, such as setting up automatic payments with your bank, will ensure you rebuild your credit.

3

Evaluate revolving credit balances (such as credit cards or home equity lines of credit). If you have a balance that exceeds 30 percent of the available credit, it's hurting your credit score. Focus on paying down balances on revolving credit lines. For example, if your credit limit is $10,000, aim to get your balance below $3,000.

4

Avoid closing out old credit card accounts. Credit history length accounts for 15 percent of your total credit score. Leave old credit card accounts open. Monitor activity through your credit report (to ensure there isn't fraudulent activity). If you decide to use the account, pay it off monthly.