How to Fix Your Credit in 90 Days
- 1). Reduce credit card balances to 30 percent of available credit. Check your credit card statement for inaccurate information and identify theft before make payments. According to MSN Money, creditors prefer to see a large gap between your account balance and your credit line.
- 2). Make all necessary payments on your credit accounts. This includes school loans, mortgages and car payments. Maintaining low balances and paying your credit bills on time are the two factors that impact your credit the most.
- 3). Use any old credit cards you have put away. Credit card companies may not update your account with the credit bureaus if you stop using your cards. MSN Money suggests making small purchases on those credit cards and paying them off each month. These cards start to be reported again which may help improve your credit score.
- 4). Obtain a copy of your credit score and report. You are entitled to a free credit report under the Fair Credit Reporting Act. Find a credit reporting service from the website AnnualCreditReport.com, the only legitimate resource for credit reporting. You can download one free credit report from one of the three major credit reporting services (TransUnion, Experian and Equifax) every 12 months. You must pay for your credit score each time.
- 5). Write letters to credit card companies disputing any outdated information or any errors indicated on your credit reports. Check for old bankruptcies or court rulings being reported. Court judgments can be reported up to 7 years, while bankruptcy information can show for 10 years. Removing incorrect information from your credit history can impact your credit score.
- 6). Order another copy of your credit score and report at the end of 90 days to see your progress. Financial expert Suze Orman says you should download a free credit report every 4 months from one of the bureaus and check for major changes or incidents of identify theft.