How to Repair a Low Credit Score

You might be wondering how to repair a credit score. The average credit score (FICO) is approximately 700. If your score is lackluster, do not fret, there are ways to improve your score in the short term and over time.


The major factors that make up your credit score, in order of importance, are:
  • Payment History
  • Late Payments on Your Record
  • Amounts Owed
  • The Ratio between Your Current Balance and the Available Credit on Your Card
  • Length of Credit History
  • Age of Your Account
  • New Credit
  • Number of Credit Cards You Have
  • Number of Times You Have Applied for a Credit Card and Been Rejected

Types of Credit Used

Is your debt mostly secured real estate or student loans or are they revolving lines of credit and credit cards?

The best, and quickest ways to improve your score are to work on the ones that comprise the bulk of the credit; payment history and amounts owed.

To do this, you should first get a current copy of your credit report through any of the credit reporting agencies.

You can also get a tri-merge report from sites like freecreditreport.com.  Make sure your FICO score is included in the report. Sometimes there is an additional fee for this option.

If there are any accounts on which you have late payments try to bring them current as soon as possible.  If you can not bring them current call your creditor and try to work out a pay agreement such that they report you as current or paying, rather than being late or behind.

In regard to amounts owed, if your remaining balance or balanced owed is more than half as much as your credit limit for that account you are carrying to high a balance on that card or loan.  Try to pay these high balance accounts down to under 50% of the credit limit.  This shows the credit agencies that you are not maxing out your cards.

It is not uncommon for people to jump their scores 100 points or more in under two months time just by concentrating on these simple items.


The average credit score (FICO) is approximately 700.  If your score is lackluster, do not fret, there are ways to improve your score in the short term and over time.  The major factors that make up your credit score, in order of importance, are:

1.   Payment History - Are you on time or do you have late payments on your record?

2.   Amounts Owed - Do you carry a balance of more than 50% of your available credit?

3.   Length of Credit History - How long have your accounts been open?

4.   New Credit  - Are you constantly applying for new credit or have you been turned down recently?

5.   Types of Credit Used - Is your debt mostly secured real estate or student loans or are they revolving lines of credit and credit cards?


The best, and quickest ways to improve your score are to work on the ones that comprise the bulk of the credit; payment history and amounts owed.

To do this, you should first get a current copy of your credit report through any of the credit reporting agencies.  You can also get a tri-merge report from sites like freecreditreport.com.  Make sure your FICO score is included in the report.  Sometimes there is an additional fee for this option.

If there are any accounts on which you have late payments try to bring them current as soon as possible.  If you can not bring them current call your creditor and try to work out a pay agreement such that they report you as current or paying, rather than being late or behind.

In regard to amounts owed, if your remaining balance or balanced owed is more than half as much as your credit limit for that account you are carrying to high a balance on that card or loan.  Try to pay these high balance accounts down to under 50% of the credit limit.  This shows the credit agencies that you are not maxing out your cards.

It is not uncommon for people to jump their scores 100 points or more in under two months time just by concentrating on these simple items.

 

 




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