Fix Credit Report Errors

• If your bad credit is a result of mistakes on your credit report, dispute these mistakes to fix your credit. Obtain a copy of your credit report from each of the three credit bureaus through the Annual Credit Report website. Follow the procedures listed on the credit report to dispute errors by phone, mail or online. The credit bureau must investigate your dispute within 30 days and correct your credit report if it was an error.
  
  

Get Current on Accounts

• If any of your accounts list a status on your credit report other than "paid as agreed," this is dragging down your credit score. Make payments to creditors or collection agencies to get up-to-date on all your obligations. Although the missed payments will still appear on your credit report, they will not affect your credit score as much as they did when you were past due when the score was generated.
  
  

Improve Utilization Ratio

• Because 30 percent of your credit score looks at the amounts you owe, one way to improve your score quickly is to reduce these amounts. In particular, reduce your utilization ratio, which compares the amount you owe on credit cards to the card limits. Do this either by budgeting to make extra payments or by calling the credit card company and asking for a credit line increase. In addition, stop using your credit cards so you do not increase their balances.
  
  

Warning

• You cannot legally remove accurate information from your credit report, so beware of any company that claims to be able to do so. The only exception is if the information is over seven years old, or over 10 years old for a bankruptcy. Although some credit repair companies legitimately help you improve your credit report, many of them are scams. The Federal Trade Commission recommends that you stay away from credit repair companies that make you pay upfront, recommend that you don't contact credit bureaus directly and don't tell you about what you can do for free.