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How do I Fix a Credit Score?

Article Details
  • Written By: Rolando Braza
  • Edited By: C. Wilborn
  • Last Modified Date: 19 July 2018
  • Copyright Protected:
    2003-2018
    Conjecture Corporation
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You can start to fix a credit score by securing a copy of your credit report from the top ranking credit bureaus in your locality. A careful scrutiny of the credit report can then be made in order to provide you with sufficient and significant details that can help in formulating your strategy to either rebuild or improve your credit score. In general, it is advisable to focus the review of your credit report on the negative aspects such as late payments, delinquent accounts and written-off accounts. After a thorough review of your credit report, you will be ready to come up with a plan to lessen your overall credit balance, settle unpaid and overdue loan and credit card accounts, and move toward your goal to fix a credit score.

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In reviewing a credit score, you will benefit from being meticulous with details. Credit bureaus do not usually check the accuracy of the report provided to them by credit companies. There is therefore a chance that some of the entries in the credit report may be wrong. It is a good idea to document any errors you find and immediately file a dispute with your creditor or credit card provider. Once a dispute is resolved in your favor, you should request your creditor or card provider rectify your record with the credit bureau. In addition, you may submit a copy of your dispute letter to the credit bureau along with the erroneous credit report and the supporting documents pointing to the errors you have discovered.

Proactive strategies are recommended to fix a credit score. If you are experiencing problems in paying your loans or credit card balances, calling your creditors to negotiate for lighter payment terms might help. You can request an extension of payment due dates and even haggle for lower monthly payments by stretching the payment period. Negotiating can spare you from being reported to a credit bureau as delinquent.

Your strategy should also include the settlement of accounts that have already been turned over to a collection agency. It is possible to bargain for a lump sum payment lower than the outstanding principal amount and the reduction of interest and surcharges. You can also ask that all negative remarks in the credit report be withdrawn in exchange for the payment you will make.

When it comes to credit cards, try to keep the number of accounts you maintain be to a manageable number. Having too many open accounts can have a negative impact on your credit score. It is also ideal to keep card balances well below the credit limit.

It is a good idea to fix a credit score as soon as possible. The earlier you fix it, the quicker you can restore your good credit standing. If you have tried these basic methods of improving your score and are still struggling, you may want to seek advice from a credit professional.

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