How to improve my credit score? No matter how bad your credit is, you can take steps that will make it better. Step one. Pay all of your bills on time. Late payments, payments that are 30 days late or more have a negative effect on your credit rating. Step two. Reduce the number of credit cards you carry. Write to your creditors to request that they close your accounts and report this status change to all the credit-reporting agencies. Step three. Avoid bankruptcies, tax liens and collections. A bankruptcy and collections stays on your credit report for up to 6 years. Tax liens will haunt you forever. Step four. Request in writing that your creditors reduce the credit limits on your accounts to lower your amount of available credit. Lenders consider the total amount of available credit even if you owe nothing. Step five. Ask a family member or friend to co-sign on a small loan or credit card to help you re-establish credit. Make your payments on time. Step six. Get a secured credit card to help reestablish your credit. You will have to keep a designated amount of money in an account that will be sufficient to cover your charges. Also, be sure to make payments on time. Step seven. Get a yearly copy of your credit report to catch any errors. When you have a friend or relative cosign on a loan or credit card, remember that that person’s credit will be affected by the payment history as well.
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