The best way to repair your personal credit will depend on your individual circumstances and the specific factors that are affecting your credit score. In general, however, the following steps can help you repair your credit:
- Review your credit reports and dispute any errors or inaccuracies that you find. You are entitled to a free copy of your credit reports from each of the three major credit bureaus (Experian, TransUnion, and Equifax) once per year. You can request your reports at www.annualcreditreport.com.
- Pay your bills on time, every time. Late payments are a major factor in credit scoring, and paying your bills on time can help improve your credit score.
- Reduce your credit card balances. High balances on your credit cards can negatively impact your credit score, so try to pay down your balances as much as possible.
- Don’t apply for new credit unnecessarily. Every time you apply for credit, the lender will do a hard inquiry on your credit reports, which can temporarily lower your credit score. Avoid applying for new credit unless you really need it.
- Consider credit repair services. If you are struggling to repair your credit on your own, you may want to consider working with a credit repair company. These companies can help you dispute errors on your credit reports and negotiate with creditors to remove negative information. It is important to choose a reputable and accredited credit repair company to avoid scams.