How to Fix Your Credit Rating in 12 Months

If you are trying to fix your credit rating there are a number of things that you can do. Many people mistakenly believe that once their score is bad, they are destined to have a bad score forever. In truth, the credit scoring system is a dynamic system that allows for change. If you start to get your act together financially after a bad period, you can grow your score back up to a respectable number. Even people who have been through bankruptcy have managed to get their credit score back up after a certain period of time. Here are a few tips to help you fix your credit as quickly as possible.

Get on Schedule

The most important factor in getting your credit score under control is paying your bills on time. The credit bureaus put a huge emphasis on this, since 35% of your score is made up from this information. All of your creditors report this information to the credit bureaus regularly. While they might not report one late payment, if you consistently make your payment late, they will start reporting it. If you miss payments regularly, this will hurt you even more.

Come up with a plan to help remind yourself to pay your bills on time. Get on a schedule and sit down at the same time each month to pay your bills. Most people put their bills on automatic these days with all of the automatic debit processes and online bill pay. This can be advantageous if you can keep up with the money coming out of your account. This way, your payments will always arrive on time.

Pay Down Balances

Credit cards probably played a role in getting your credit score low in the first place. However, they can also play a role in getting you back to respectability. If you have large balances on your cards or they are maxed out, you need to make it a priority to pay them down. You don't have to completely pay them off if you can not afford it right now. However, you need to get your balances down as low as possible. It is ideal if you can get the balances down to 30% of your total credit limit. This is how credit bureaus assess how you are doing with your available credit. If you always have a maxed out credit card, they will assume that you are in over your head. Get the balances down and watch your credit go up.

Resolve Conflicts

If your credit score is bad, there is a good chance that you have had some disputes with creditors along the way. If you find that any of them can be resolved, it is in your best interest to do so. Go through your report line by line and talk to each of your creditors about fixing your relationship with them. Many times, you can get them to remove negative remarks on your credit report.


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