Credit Cards

10 Ways to Fix Your Credit

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Some of you may be thinking, I’m still young, so why should I care about my credit score? Lots of people have debt and less than stellar credit, but they’re still enjoying a cushy lifestyle. As long as I’m able to buy the things that I want, why should I be concerned? The answer is simple. Life is easier when you have good credit.

Take a look at it this way. Landlords, employers, and lenders need to determine whether they can trust you, and they look at your credit score as an indicator of your financial reputation. You may not think credit affects you greatly, but it does. When you ruin your financial reputation (a.k.a. credit score), it will take you a long time to restore it.

Poor credit affects your ability to rent, buy a car, get a home loan, and even open up accounts. Creditors don’t want to work with people with bad credit because the risk of not getting paid is very high. How can they trust that you will pay them back if you haven’t even paid others? If you’ve already tarnished your credit, here are some tips to help you fix your score and reestablish your life.


1) Make Your Payments on Time

This may sound trivial, but we all know that money can be tight, and skipping payments on one bill can help pay for other expenses. But, timely payments are the biggest factor affecting your credit score. Keep a budget, and make sure you have sufficient funds to make your credit card and loan payments on time.

2 ) Consider Getting a Secured Credit Card

Obviously, it will be very hard to get a regular credit card if you have bad credit. If you don’t qualify for a credit card, you can get a secured card instead. This is when the bank gives you a credit line equal to the deposit you make. If used wisely, a secured card can help nurse your poor credit to better health.

3 ) Add an Installment Loan

You can improve your score quickly if you show that you can be responsible for both major kinds of credit: revolving (credit cards) and installment (mortgages, auto, student loans, etc.). If you don’t have an installment loan and feel you are ready to handle one, consider adding a small personal loan. Stay away from expensive finance companies and “teaser” deals, and use a company that reports the loan to all three credit bureaus.

4 ) Avoid the Minimum Payment Trap

Credit cards come with high interest rates. We all know how our $2,000 computer ended up costing $8,168 because we only made the minimum payments at 20% on our credit card. Ouch, that hurts! Keep constant payments on your credit card (and don’t run them up again) and your balances will drop.

5 ) Use Your Credit Cards Lightly and Check Your Limits

Even if you pay your bills on time and in full each month, having big balances can hurt your score. Try to limit charges to 30% or less of your card’s limit. Lenders typically like to see a big gap between how much you’re charging and your available credit limit.

6 ) Keep Old Credit Cards

Don’t close out old credit cards. The longer your credit history, the better. Leave the accounts open but once you pay them off, stop using them. Closed accounts tend to bring down your score.

7 ) Suspend Credit Inquiries

The more credit inquiries you have, the more your credit score drops. Fix your credit and wait a while before allowing your credit to be pulled again.

8 ) Get a Goodwill Adjustment

If you have been responsible about paying your credit cards on time, the lender may agree to erase a late payment from your credit history. For more troubled accounts, communicate with your lender about possible options to erase previous delinquencies. If the lender agrees, it will improve your overall record.

9 ) Check Your Credit Report for Errors

You can check your credit report without negative scoring (once per year, for free) with the three credit bureaus at Make sure to look for any mistakes that could be hurting your score. If you see something wrong, make the effort to have it corrected.

10 ) Seek Professional Help

If you are overwhelmed with debt and don’t feel you can handle the problem on your own, consider working with a professional debt relief company. They can help you explore your options and give you guidance on how to fix your credit.


It’s very easy to ruin your credit, but it takes time to build it back up. No matter how bad your credit is, you can take steps to make it better.

Are you ready to build credit wisely? Click here to see the card I recommend as the best credit card for young adults. The card allows you to get your credit score free each month.

Sometimes we mishandle our budget, and we spend more than we should. (You know that you shouldn’t have bought that expensive flat screen TV). And, sometimes we end up in tough financial situations because of things beyond our control. Whether you have experienced job loss, illness, or another type of financial disruption, it’s important to know that you can turn things around.

It may not be easy, but step by step, you will be able to fix your financial situation. Just don’t delay facing the issue. The longer you wait, the harder it is for you to recover.

Fast Credit Repair That You Can Do Yourself

LaTisha Styles is a motivational speaker, millennial money expert, and spokesperson specializing in simple finance for millennials. LaTisha is the producer and host of Young Finances TV, a weekly series featuring funny, insightful videos on the basics of personal finance. LaTisha has been quoted in Forbes and Mainstreet, featured in The Economist, and mentioned in US News as a top personal finance expert to follow on Twitter. You can follow LaTisha on Twitter for daily millennial money tips to budget, invest and achieve success!

  • femmefrugality

    My goodwill adjustment post went live this morning :) It worked for me!

    • LaTisha Styles

      That’s awesome to see it in action! What is the link to your post?

  • Jai Catalano

    Seek professional help is always a surefire way. My friend does it for a living.

  • Brilliant Finances

    Good point about keeping old credit cards but not using them. Some people think we should not worry about credit score at all though especially if we are trying to pay with cash.

  • Edward Antrobus

    I wouldn’t recommend a secured card. The fees and rates on them are rediculous. The last time I had one, there was a minimum $0.50 finance charge. If you used your card in any given month, you were paying interest on the purchases, even if you paid off the balance! I once bought a $1 pack of gum and paid $.50 in interest on it 15 days later.

  • 20’s Finances

    I have worked diligently to pay off my credit card completely for the last 9 years or so. I hated to see when I underpaid because of a technical glitch on my credit card’s website. I got that fixed though. Can’t have it affecting my credit!

  • JW @ AllThingsFinance

    As a landlord, credit and rental history are two things I always check before renting my home to someone. I will not deny someone with bad credit, but I will require 3 months rent as a deposit as opposed to 1.

  • Joseph Hogue

    Most don’t know it but if you write to someone that has an account on your credit report, contesting the debt they must respond within 30 days or you can contact the credit bureau and have it removed.

    This is the standard method for errors on your report…but if you’ve got a late payment or bad debt that is on there it can also work for removing that as well. Think Sachs Fifth is spending time to respond to you on that credit card you missed a payment on and closed three years ago? They’ve got better things to do. You can’t use it to remove debts you currently owe, but it can be a great way to clean stuff up.

  • Lance @ Money Life and More

    Having a good credit score can save you tens if not hundreds of thousands of dollars over your lifetime. Take it seriously and use some of these tips to get there!