How Can I Improve My Credit?

You may be looking for a fast and simple answer.  The truth is there is no quick fix, but there are things you can do today to improve your credit.

• Get and review your credit report.  Go to annualcreditreport.com for your free, annual credit report from each of the three credit-reporting agencies—Equifax, Experian, and TransUnion.
• Dispute and correct any errors.  Look for inaccurate information, information that does not belong to you, and outdated information still being reported. In general, negative information should only be reported for 7 years.  Check to make sure negative information is not hanging around longer than it should.
• Make sure anything that is in the collection accounts section of your reports belongs to you.  If there is accurate collection account information, make sure the balance is not being reported as outstanding with the original creditor.
• Pay all of your bills on time and as agreed.
• If you have credit cards, make sure you are only using 20 percent or less of your credit limit.  Keeping your credit utilization rate low improves your credit scores.
• Make sure all of your debt balances are declining.
• Ensure the information in the public records section is accurate.  If you owe money for child support or taxes, make a plan to start repaying this money.  Tax liens will be reported as long as you owe them and then for another seven years.
• Consider a credit building strategy.
• Don't apply for a lot of credit; this will damage your credit, instead of building it.
• Ask for a “good will” deletion.  If you have paid your bills on time and as agreed with a creditor, but missed a payment or two, you may be able to negotiate a deletion of the negative entry.
• Ask a creditor not to report negative information to the credit bureaus in exchange for payment.  This only works before a debt has been turned over to a collection agency.