If you have a credit score below 550 what are the best ways to improve it in a year?

Answer 1

A specific answer to your question would depend on the specific information showing on your permanent credit file that causes you to currently have a 550.

In general, credit scores can be improved primarily by paying all accounts in a timely manner. There is no substitute for this. You also need to manage revolving credit properly. 2-4 active accounts, paid on time, with the balances kept proportionately low to the available credit limits, will cause your scores to increase. Controlling and limiting inquiries is another important component in high credit scores. All of these actions would be totally offset by even one late payment or an older account in collection or charge off status that is updated with the last 12 month period (from whenever you pull your credit). So, you might want to pay off or settle all derogatory issues now. Doing that won't help your scores right now, but in 12 months from the date they are paid, applying all the other advice also; you should be in good shape.

When my FICO was below 550, I contacted the creditors on my report that were reporting the negative information one-by-one. I settled with them for pennies on the dollar if they agreed to report that the account was reported incorrectly and was NEVER LATE. These were mostly medical bills, which was pretty easy to do, but time consuming. Another great resource is www.creditattorney.com. They helped me ALOT! I had a repo included in my bankruptcy in 2000....it was removed! How? Beats me. Good Luck!