How to Repair Your Credit

Like your reputation, your credit takes years to build – but only moments to destroy.

And once yourcredit scoretakes on damage, it can take months or years to repair.

Fixing your credit takes time and hard work – but it’s worth the effort.

Many credit cards also offer free access to your credit scores through your online account.

Flagging errors doesn’t cost anything and can improve your score.

Read CNET’s guide onhow to read a credit reportto understand what’s in it.

The first step ismaking a budget.

Look at your monthly income and expenses.

The best place is to check bank and credit card statements to see where the money is going.

Look at the statements from the various creditors and see what the minimum payment is for each account.

Prioritize your debts

The accounts with the highest interest rates should be your top priority.

But there’s another important factor – your “credit utilization.”

“Credit utilization rate can be quickly updated to improve (or hurt) credit health.

The closer you get to this percentage, the better your credit will be.

Late and overdue payments canblemish your credit history for years.

If paying bills on time is an issue for you, consider setting up automatic payments.

If that’s not an option, set a reminder on your phone or calendar.

In general, the longer you’ve had a credit card, the better.

Once you’ve paid down the balance, you may be tempted to close your credit card account.

Don’t do it – unless it has an annual fee.

Closing an account can change your credit utilization and negatively impact your credit history.

As your credit score improves, you’ll likely receive more credit card offers.

Ignore them – unless there’s abalance transferoption with 0% interest and an adequately long repayment period.

Sometimes not long at all.

But there are exceptions.

But if you file for bankruptcy, it could take up to 10 years.

While some credit repair fees may appear reasonable, they can quickly add up over time.

It seeks to protect consumers from misleading advertising, excessive charges and lack of full disclosure.