Simple Ways to Fix Your Credit Report Without Panicking
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Bad credit is the adult version of the boogie man. Lenders evaluate your creditworthiness to determine if they want to lend to you. Unfortunately, having a poor, incomplete, or nonexistent credit file can keep you from owning a home, bar you from benefitting from a high-end rewards credit card, and cause you to pay extra in the form of higher interest rates and fees.
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How to fix your credit report
It’s not all bad. Sometimes your credit report contains errors that are not your fault—like a data entry mistake by the bank or identity theft. You can fix those things by disputing the incorrect information. And if you have bad credit because of poor past choices or no credit history, there are ways to fix that, too. Read on to find out.
Different approaches to solving credit report problems
Fixing a credit report always requires two steps: gathering information—like your credit report and score — and then taking action.
If the information is correct but not good, the action you need to take can be pretty straightforward, like paying bills on time or becoming an authorized user on someone else’s credit card. You can also try to request a credit limit increase, which will increase your available credit. As long as you don’t spend more money than before, this action decreases your credit utilization ratio, which helps your credit over time.
If the information in your credit report is NOT correct, you may need to contact one or more credit bureau to dispute information or remove a collections account.
Credit monitoring, a credit repair service, and all three credit bureaus can help you maintain and improve your credit. They can also help protect you from identity theft and scams. Below we’ll outline the different companies and services that can help you identify and resolve problems with your credit report.
Related: How to Remove Closed Accounts From Your Credit Report
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Sites that can help you fix your credit report
AnnualCreditReport.com
Go to AnnualCreditReport.com to request a free copy of your credit report. This will help you spot mistakes. The three credit bureaus — Equifax, Experian, and Transunion — are required by federal law to give you a free copy every 12 months. And during the COVID-19 pandemic, it offers free credit reports every week.
Experian
If you notice any incorrect items in your credit report, especially negative information like collection accounts, you have the right to dispute them. You can do that by contacting the collection agencies or any credit bureaus directly and asking to have the negative information removed. Experian lists details about their dispute process here.
Experian also offers a free credit monitoring service called Experian Boost. This service can help improve your credit by tracking your on-time payments to subscription streaming services and utility payments.
Equifax
If you notice anything incorrect on your Equifax credit report, you should also dispute that. Here are their instructions. Equifax also offers a free credit monitoring service called Equifax Core Credit. Using this service can help you know if anything is out of the ordinary—like a sudden, unexplained drop in your credit score—so you can fix it ASAP.
TransUnion
Similar to the other credit bureaus, TransUnion offers consumers a way to dispute inaccuracies in their credit reports. It also provides TrueCredit, which monitors your credit scores and reports from all three bureaus and provides recommendations on how to improve them.
Chase Credit Journey
If you have an account with Chase, you can monitor your credit score and credit report for free, including identity theft monitoring. Besides free credit scores, Chase Credit Journey also provides suggestions on activity that is negatively impacting your score, like “The date you opened your oldest account is too recent.” If you notice unexplained fluctuations or unrecognized records, you may be a victim of identity theft, or perhaps a financial institution has made a mistake that needs to be corrected.
Credit Karma
Another credit monitoring service, Credit Karma, tracks your credit reports and score from Equifax and TransUnion. It’s more robust than other free credit monitoring companies because Credit Karma provides info from two credit bureaus rather than just one.
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LifeLock
If you want more besides credit monitoring, you can sign up for LifeLock. The standard plan comes with credit monitoring from one bureau plus identity theft protection. Like other credit monitoring services, this allows you to track any unexpected or unexplained fluctuations in your credit score. LifeLock also helps protect you by monitoring data breaches and the dark web and providing reimbursement for $25,000 of stolen funds (in addition to $1 million coverage for lawyers and experts).
Ally Bank
If you have bad or no credit and don’t have a bank account, now’s the time to sign up for one. Consider a free online, high-interest checking or savings account like Ally Bank. This will allow you to show off a positive financial history on your ChexSystems report while earning a little bit of money in APY. A bank account is often the first step in building a positive credit history in the eyes of lenders because it shows you handle money responsibly.
OpenSky
If your credit report is correct but bad, you can apply for a secured credit card like OpenSky to help build (or rebuild) a positive credit history. Cards like this are usually easy to get because you provide an upfront cash deposit—that’s your credit limit. It can help build your credit history because as you use it and make on-time payments, the credit card company reports that information to the credit bureaus.
OppLoans
Past due payments and late payments can hurt your credit score. That’s why it’s essential to pay off high credit card balances ASAP. A personal loan from a second chance company like OppLoans can help you do that by consolidating high-interest debt into predictable, monthly payments. OppLoans says it doesn’t use FICO scores in the loan approval process, so this might be a good option if your credit report is negative.
Read a full review on OppLoans.
Affirm
If you cannot qualify for loans because of your negative credit report, you could get a loan for large purchases through a buy-now-pay-later (BNPL) company like Affirm. It doesn’t require a minimum credit score, and some people may qualify for an appealing 0% APR. If you make on-time payments and your payment history is reported to the credit bureaus, a BNPL loan could help you fix a negative credit report.
Target REDcard Credit Card
If you have fair credit, it may be easier to qualify for a store credit card like the TargetREDcard. If you make on-time payments, that helps your credit score. The $0 annual fee and 5% discount on Target purchases make it easy to save money. Remember that applying for new credit cards usually counts as hard inquiries, so do this with caution (too many in a short amount of time can lower your score).
InCharge Debt Solutions
If you want to fix a poor credit report and you don’t have many options, a credit counselor might be the right option for you. InCharge is a non-profit organization that offers NFCC-certified credit counseling, debt management plan, and bankruptcy counseling.
CreditRepair.com
Credit repair companies like CreditRepair.com are viable options if you need an advocate to address negative items. CreditRepair.com can help you dispute charges with your credit companies, request goodwill interventions, and help you increase your credit score in general.
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Costs
The cost to get a report is free, and some companies offer free credit monitoring (in exchange for your data, of course, and ad attention), but more robust services do cost a little money. Here’s how it breaks down.
Service | Cost |
AnnualCreditReport.com | Free |
Experian Boost | Free |
Equifax Core Credit | Free |
TransUnion TrueCredit | $24.95/mo |
Chase Credit Journey | Free for members |
Mint | Frees |
Credit Karma | Free |
LifeLock Standard | $8.99/mo (for the first year) |
Ally Bank interest checking account | $0 monthly maintenance fee & $0 minimum balance |
OpenSky | $35 annual fee |
OppLoans | Varies by state. Check rates and terms. |
Affirm | $0 fees |
TargetREDcard Credit Card | $0 annual fee, up to $40 late payment fee |
InCharge Debt Solutions credit counseling | Free |
CreditRepair.com | $69.95/mo |
Pros/Cons of trying to fix your credit report
Pros
- Helps you qualify for better loan terms and credit cards.
- Helps you qualify for some apartment leases and jobs.
- Sometimes carries the added bonus of identity theft protection.
Cons
- Doesn’t solve underlying problems like low income or poor habits.
- Can be confusing. There are many different types of scores and three different credit bureaus.
- Hiring help from experts can get expensive.
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- Sign up for FREE & complete your profile
- Earn points for taking surveys
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- Complete 3+ surveys a day, earn up to $100/mo.
The bottom line
Remember that credit reports are not fixed overnight. Fixing yours will take time and discipline. By utilizing some of the resources and strategies outlined here, you may be taking the first step in your journey to a better credit report. Good luck on your journey.
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Writer
A veteran wordsmith and research nerd, Brittany Wren spent a decade working in higher education where she helped people overcome challenges to chart a path forward. These days, she writes about personal finance, careers, parenting and education. Her content has been published by a wide variety of brands including T-Mobile, Intuit, LifeLock, Reliant Fund Administration and CURO Financial Technologies Corp.
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