- 1). Make payments early. Late payments contribute to a low credit rating. Make bill payments on time every month to repair a bad relationship with your creditors, and to add points to your credit rating. Early payments and online payments can help alleviate lateness and extra fees.
- 2). Pay down debt. Carrying a high balance on credit accounts also hurts your rating, whereas keeping debts low can improve a bad rating. Create a strategy to pay off debt such as making higher payments, taking cash from savings or getting a second job.
- 3). Quit applying for new lines of credit. Every credit application you submit lowers your rating. Postpone all credit inquiries until you've improved your rating, and then only apply for credit when necessary.
- 4). Pay off collections and judgments. Setup small payments each month to pay off old debts, and then contact old creditors and ask them to remove judgments and collection accounts from your report.
- 5). Closely monitor your credit report at least once a year. Look for activity that can lower your credit rating such as unfamiliar accounts or inaccurate account information. Contact creditors to dispute errors.
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