A low credit score can really cause you a lot of problems in life. When you go to try to buy the things you want, such as a house or car, you find that you either have to pay extremely high APR's (what the bank charges you to borrow money from them) or even worse, you're not allowed to buy the house or car at all!
Fortunately, repairing your credit is easy, and does not have to take years. You can quickly and easily raise your score by up to 200 points in as little as 90 days in just 3 easy steps.
Step # 1
Find out EXACTLY where you're at by getting a copy of all three of your credit reports online. You have to check all three (Experian, Equifax, and Transunion) because one report may have something bad on there, that the other two do not have.
Verify that all of your personal information is correct. Remove any misspellings of your name, any old addresses, any old jobs, any information that is not current, and spelled correctly, remove it.
Step # 2
Look at the negative items on your report. Look for anything wrong: ie a misspelled name, a wrong address, an old address that you successfully removed in step 1, etc. Any incorrect information is a reason for an item to be challenged.
When you find an incorrect item, challenge it. While this can be done online, it's recommended that you challenge by mail. A well written letter has a much higher success rate than an online or even an over-the-phone challenge. And they work about 15 days faster too. You can find sample challenge letters all over the internet, or you can goto the website mentioned below.
Step # 3
Reduce all of your current credit cards to no more than 30% of their limits. If the limit on one card is $ 1000, then make sure that your balance is no higher than $ 300. If you have more than one card, and one card is near it's max, and another is not, transfer the balance to the card that has not been used as much.
If you have no credit cards, you should look into some secure credit cards. Start early in the process. Remember there are TWO sides to raising your score: removing negative items from your reports AND adding positive items to your report.
Follow these simple steps and you can boost your credit score up dramatically and quickly.
Source by Sean Benson