How do I Rebuild a Credit Score?

If your credit score is not as high as you would like it to be, rest assured that there are various ways to fix it. The first step is getting a copy of your report so that you can analyze it and dispute it if need be. Once you have removed any incorrect negative information, you can add some positive items to your score by opening up a new card and maintaining it properly, even if you have to start with a low limit. Another way to rebuild a credit score is to consistently monitor your score to keep track of your progress and catch identity theft early.

It is crucial that you get a copy of your credit report before you take any steps toward trying to rebuild a credit score. After analyzing it, you may find incorrect information that should be fixed right away. To dispute a credit score, you should write a letter of dispute to each of the three credit bureaus to let them know about the error. If they cannot help you after investigating the issue, you can also contact the company reporting the incorrect information to try to fix the problem. It is difficult to start to rebuild a credit score unless you are sure that your report is accurate to begin with.

Once you are positive that your credit score accurately reflects your history, it is time to begin improving it. If your score is particularly poor, you will likely have to start with a credit card that has a low limit, but after several months of paying on time, your limit may be raised. You can also start to rebuild a credit score by using a secured card, which is given to nearly anyone after paying a security deposit. Be sure to keep your balance low at all times, and make it a habit to pay off the majority of what you spend each month. After months of paying more than the minimum payment on time, you should start to see an improved credit score.

Obtaining a copy of the credit report and handling new cards responsibly can help you start to rebuild a credit score, but you will need to continually monitor the report. Most credit card companies and banks offer this service for a small monthly fee, and if you can afford it, it is usually worth it. Taking a look at your report monthly will not only show you how your new responsible spending habits are improving your score, but can also help you catch incorrect information early. Additionally, it is recommended that you check your credit report frequently in order to help catch and prevent identity theft, which can destroy your credit quite quickly.