- 1). Download a free credit report from AnnualCreditReport.com. Make sure to obtain a report from each of the three major credit bureaus, TransUnion, Equifax and Experian.
- 2). Go to the MyFICO website to obtain your FICO score. In 2010, obtaining a report cost $15.95, or you could obtain one for free along with a trial offer of Score Watch. If you don't cancel within 10 days, you will be billed $12.95 monthly.
- 3). Contact the three major credit bureaus to dispute inaccurate items on your credit report (if any). False collection accounts, charge-offs and judgments will significantly reduce your credit score.
- 4). Pay off late bills. According to MyFICO, late bills drag down your credit score significantly. Pay your latest bills first, as these will likely have the largest effect on your credit score.
- 5). Pay off collection accounts. These accounts, also known as "charged-off accounts" or "bad debt," show lenders you have forgotten your debt obligations in the past. While these items won't drop off your credit report after you pay, creditors will report the status of the accounts as "paid," raising your credit score slightly.
- 6). Pay down your revolving debt, such as credit cards and home equity loans. Carrying a high balance on your revolving lines of credit dings your FICO score. According to MyFICO, borrowers should keep their debts to 30 percent or less of their available credit.
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