Credit Infocenter

4 Ways to Fix Bad Credit on Your Own

November 15th, 2019 · No Comments · Credit Repair

by holly

(Last Updated On: November 11, 2019)

Having a bad credit score can impact other areas of your life besides getting a mortgage or a credit card.  It can affect your insurance rates and your chances for employment.  If your credit could use a boost, here are some ways to do it.

Before You Start

Before we get started, there are a few pieces of information you should have in front of you.  First, you should understand what constitutes good credit, which is having a good credit score, leading to the question, how is a credit score calculated? A credit score is calculated based on 5 factors:

  • Your payment history – 35% of your score
  • Your credit utilization (amount you owe vs. your credit limit) – 30% of your score
  • Length of credit history – 15%
  • New Credit – 10%
  • Types of credit used – 10%

Second, we need to have current, accurate information on the current status of your credit.  To get your credit picture, you need your credit report and your credit score.  To get your credit report, go to  To get your credit score, there are a number of different ways to get them, free and paid.  Here is a complete list of the free ways to get your score.

A good credit score is anything above 720 (credit score ranges are from 350 to 850, with 850 being the best score).  However, once you get to 680, many credit products will become available to you, so if your credit score is low, aiming for 680 is a good short-term credit goal. 

Bad Credit Fixing Strategies

1. Dispute inaccurate information on your credit reports.  Since your payment history is the biggest chunk of your score, the first thing to do is to make sure that bad credit history is accurate.  Review your credit report by looking at the Adverse History, Collections, and Public Records sections.  These sections will list any negative credit history entries.  Make sure that all the credit information, including the date, the amounts and the payment history, is correct.

If you find errors, even slight ones, write a dispute letter to correct the listings.  Do not dispute over the phone or online.  Most people find success with this method, as usually 10% of listings in a credit dispute letter get removed on the first try.  Once you get the results of the dispute back, check your credit score again to see what kind of progress you have made.  If you feel you need to redispute the information, make sure the disputed information in the listing is different, or supply information why the initial dispute was correct.

Sometimes even disputing the minor bits of information about an account can result in having the listing removed from your credit report, which can really boost your score.  Also, when correcting information on your credit report, make sure that your name, address, social security number and employment history is correct, as this can prevent credit merging.  Credit merging occurs when information from someone who has a similar name or address winds up on your credit report.

2. Pay down credit card balances.  Since this is the second biggest factor in determining your credit score, this is a highly effective way of getting a credit score boost.  First of all, figure out your credit utilization rate for each credit card.  It’s not that difficult:  look at your credit report and divide your balance by the total credit line.  If you are over 30% on any one or all of your cards, work on paying down those balances to no more than 30%.  This will have an immediate effect on your credit score and this method will work the fastest to improve your credit.  For the biggest improvement in score, try and get your credit utilization rate to 10%, which is the optimal amount. 

3. Open a secured credit card account.  This method hits both the payment history scoring bucket of your credit score along with the new credit credit scoring bucket:  you will open a new account and you will promise to keep the payment history on this new card as perfect as possible (don’t bother getting the card if you can’t do this).  There are a number of credit card products on the market that cater to the less-than-stellar credit population.  Some of them have competitive interest rates and low to no annual fees. 

A secured card is obtained by placing a deposit with a bank into a savings account or just having the bank hold it as a security deposit.  A credit card is issued with a total credit limit equal to the security deposit or savings account.  If the credit card holder defaults on the card, the security deposit or money in the savings account is forfeited.  This greatly decreases the risk to the bank and therefore a person with bad credit can qualify for one of these cards. 

When getting a secured card, pay attention to the fees, the amount of security deposit and the credit card interest rate.  Also, try to get one that will allow you to migrate to over to an unsecured credit card program once you prove your credit worthiness. 

4. Get added as an authorized user or open a new account jointly with someone who has good credit.   Doing this obviously requires a lot trust from your proposed credit card partner.  If you get added to an account or sign up for a joint one, the other person on the account will have responsibility for any charges that you make on the cards.  However, the results of a successful partnership will be an improved credit rating for you, and potentially the co-signor.

If you get added as an authorized user, make sure it is to an account with a low balance (you don’t want a high credit utilization rate) and a good payment history.  Being added to an established account will add age to your accounts (10% of your score) and a positive payment history (35% of your score).

If you open a new account with someone, you are hitting the new credit credit scoring bucket, and also the credit utilization rate, as most new cards start with a credit limit of $2500 or more.  Keep that balance low and you will see your overall credit utilization rates lower to improve your score.  Obviously, you will also want to make sure to pay this new account on time, so as to not hurt your co-signor’s credit rating and your own.  By establishing this new account, your perfect payment history will start to positively affect your credit in about 6 months to one year. 


There is really no quick fix to fixing your credit, this is a long-term project, taking 6 months to a year.  Time heals all credit wounds, even the most severe, as long as you make the commitment to keeping your payment history clean and your credit card balances low. 

For the complete guide to fixing your credit, review our credit repair guide


No Comments so far ↓

There are no comments yet...Kick things off by filling out the form below.

Leave a Comment