Improving Your Credit Score

Whether you’ve had credit problems in the past or you’re simply aiming to get better interest rates in the future, there are always steps you can take to improve your credit score.

And you can take many of these steps by yourself—without paying someone else to help. Since the early 1990s, thousands of “credit repair” firms have come into being. Some are legitimate…many are crooked. You need to proceed carefully when working with these outfits.

However you proceed, don’t believe the credit repair agencies who will tell you they can repair your credit in a matter of weeks. Coming back from the credit-damned takes time, often in the neighborhood of one to two years.

It is true that some credit repairs will show up faster than others. Credit scores are fluid numbers that change all the time, as the information in your credit report changes. However, Experian notes, “Most credit scores do not change more than 30 points in a quarter.”

So, you can do the math on this: If your credit score is in the low 500s and you want to get it into the mid 600s (the range most lenders consider “good” credit), it will take about a year of making smart repairs. As long as you don’t expect your credit score to shoot up from the 400-point range to the 700s overnight, you won’t be disappointed.

And here’s the best part: Once you’ve invested the time and effort, improving your credit ratings will pay off in serious cost-of-credit savings—as well as new opportunities.

Next: Step 1 - Get Your Reports