How to Fix Your Credit in 9 Steps
On February 25, 2026 By newsroom Topic: Debt Advice
Improving your credit score is achievable with strategic actions and persistence. Here's a step-by-step guide:
1. Check Your Credit Report for Errors
- Obtain free annual credit reports from Equifax, Experian, and TransUnion.
- Look for inaccuracies like unpaid accounts, incorrect personal details, or fraudulent activity.
- Dispute errors directly with the credit bureaus using supporting evidence like receipts.
2. Remove Negative Marks
- Contact creditors to request removal of accurate but negative marks (e.g., late payments).
- Goodwill adjustments are possible if you've had a positive relationship with the creditor.
3. Consider a Credit Repair Company
- Pros: Credit repair specialists can dispute items, negotiate debts, and provide monitoring.
- Cons: These services cost money and don't guarantee results.
4. Deal With Past Due Bills
- Focus on active accounts first before tackling debts in collections.
- Consider credit counseling or debt management plans for severe debt issues.
- Avoid applying for new credit to prevent hard inquiries that lower your score.
5. Always Pay Bills on Time \u23f0
- Payment history accounts for 35% of your credit score.
- Automate payments or set reminders to avoid late fees and score drops (a single 30-day late payment can drop your score by up to 100 points).
6. Pay Down Balances \udcc9
- Aim for a credit utilization ratio below 30% (e.g., keep balances under $300 if your limit is $1,000).
- Focus on high-interest debts first to save money and improve your score.
7. Increase Credit Limits \u2b06
- Request higher credit limits on existing accounts to improve your credit utilization ratio.
- Avoid using the additional credit to maintain a low balance-to-limit ratio.
8. Don't Close Old Accounts \uded1
- Keeping old accounts open helps maintain a longer credit history, positively affecting your score.
- Closing accounts reduces your available credit, increasing your utilization ratio.
9. Become an Authorized User
- Join a trusted person's credit account as an authorized user to benefit from their good credit habits.
- This helps you build or repair credit without taking on new debt.
Bottom Line: Start Today
- Credit recovery takes time, but new positive habits can significantly boost your score.
- Start with the basics: check your reports, correct errors, and pay bills on time.
- Over time, you'll see improvements, paving the way for better financial opportunities.
Tip: Regularly monitor your credit to stay proactive and spot potential issues early.
