How to Repair Your Credit Score for Free

While many companies claim an ability to fix your credit scores for a fee, there are also many ways you can improve your credit on your own. If you do not want to pay a company, taking steps like making timely payments and paying down your balances can considerably improve your standing with the three major credit bureaus.

Instructions

1

Make timely payments to every creditor. Regularly doing so will make a big difference in your credit score. As much as 35 percent of your score is based on your payment history, so if you have even one late payment, it could have a big impact. Therefore, you need to avoid making late payments of any kind to credit cards or any other creditor.

2

Pay down your balances as low as you can. This step may take some time, depending on the size of your debt. The formula used to calculate your credit score bases 30 percent of your score on how much you owe. If your balances are higher than 30 percent of your available credit, it will affect you negatively. Try to get these balances below 30 percent, and you will see your scores start to rise.

3

Use old credit accounts more than new accounts, if possible. The length of your credit history comprises another 15 percent of your credit score. This means if you have had a credit card open for several years, leaving it open and in good standing can help. If you want to close out any of your credit accounts, close the newer ones after you have them paid off.

4

Obtain different types of credit, if you can. While you may be tempted to stay away from credit when you want to build up your score, this can actually have an adverse effect. The credit bureaus like to see you with a variety of credit types. For example, you may want to have some installment loans like mortgages or auto loans and some revolving credit lines like a credit card. Another 10 percent of your score is comprised of this information.