Forget Paying for Credit Repair. Fix Your Own Credit for Free
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No one is born knowing how to manage credit, and you might be struggling with a lower credit score as a result of past indiscretions with loans and credit cards. But before you assume that your only recourse is to pay a credit repair company, take heart.Read on for the steps to take to fix your own credit -- for free.Step one: Knowledge is powerFirst things first! You can't take action on your credit if you don't know where you stand. Your first move here is to find out what your credit score is, and get a look at your credit reports.You have multiple credit scores, but FICO® Scores are the ones most commonly used by lenders when you apply to borrow money. So the most effective way to approach this is to get access to your FICO® Score with one of the three major credit bureaus (Experian, Equifax, and TransUnion).Thankfully, you can likely get this for free from a bank or credit card issuer you already do business with. FICO® Score access is one of my favorite underrated credit card perks and I can view mine via three different issuers I have cards with.As for your credit report, visit AnnualCreditReport.com and you'll get access to your credit report on file with each of those three credit bureaus. These are free to you once every week. Get a copy of each and get ready to dive deep, for the benefit of your credit.Step two: Correct errorsNext, dig into those credit reports, as what's contained therein is directly responsible for your credit score. Is the information accurate? If it's not (say, you spot a late payment that didn't actually happen, or even a credit card or loan that isn't yours), you can dispute it.You'll need to prove your case to the credit bureau that has the false information by providing documents that support your claim (such as a credit card statement showing that you didn't pay late). If the information is wrong, the credit bureau is required to investigate and correct the report. Credit report errors are very common, and having them fixed can boost your credit score.If the information is accurate, however, you can't have it removed from your credit report. In the case of late payments or other issues, it'll take several years for them to fall off your credit report on their own. Luckily, there are moves you can make to still improve your credit while you wait.Step three: Negotiate payoffsIf you owe money to creditors and are late with your payments, that could be a big reason why your credit score isn't as high as you'd like. It might sound scary, but you can negotiate what you owe with these companies and save yourself the money a credit repair company would charge you to do the same.Pick up the phone and call the credit card company (or other lender). You'll need to speak to its debt settlement or financial hardship department, and explain why you're behind on payments.From here, you'll have the option to pay a lump sum toward what you owe (and it could be less than the total; lenders just want to get paid something, even if you can't afford the whole amount) and have your account closed. Or you might be able to work out a payment plan with easier terms, or even a structured repayment plan if your finances are in bad shape thanks to medical issues, a job loss, or another catastrophe.Step four: Improve your habits going forwardFinally, to give your future self the gift of better credit, you can go back to basics and work on how you manage credit. For starters, make a vow to make every payment on time going forward. Payment history represents 35% of your FICO® Score, so this is the most significant thing you can do to help your credit.Other moves to make include leaving old credit accounts (in good standing) open, as credit history also contributes to your credit score. Avoid opening new credit cards frequently, and try to pay down any current debts, if you can.If you need a fresh start with credit cards, a secured credit card -- a type of card that allows you to make a security deposit that will be equal to your credit limit -- can help you build a positive payment history. In many cases, you can "graduate" to an unsecured credit card down the line and have your security deposit returned to you.You can fix your own credit, for free -- no potentially scammy or expensive third-party credit repair service necessary. Take a deep breath, and get started today. Your future self will thank you when they have an easier (and cheaper) time borrowing money.Alert: highest cash back card we've seen now has 0% intro APR until nearly 2026
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