How to Repair Credit: 5 Steps to A Better Credit Score

How to Repair Credit: 5 Steps to A Better Credit Score

If your credit score dropped recently because of an error or fraudulent account, you might need to learn how to repair credit.

Repairing your credit isn’t the same as rebuilding your credit. It involves removing items from your credit report that don’t belong there. But the two do go hand in hand, so it’s important to understand how both work.

What is credit repair?

Credit repair is the process of improving your credit score by disputing false and fraudulent information on your credit report. Make special note of those words, “false and fraudulent.”

This means that you can’t dispute something just because you don’t like it. If you legitimately missed a payment or had an account sent to collections, the credit bureaus and creditor are unlikely to remove the negative item from your report, even if you get current on your payments.

You’ve likely heard or seen advertisements from credit repair companies saying that they can take care of the credit repair process for you for a fee.

But here’s the kicker: there’s nothing these credit repair companies can do for you that you can’t do on your own for free. And these companies can charge hundreds or thousands of dollars. So, even if you’ve never dealt with this process before, it’s worth taking the time to learn.

How to repair your credit on your own

Repairing your credit can take time, especially if there’s a lot of fraud involved. Here are five steps to take to get started.

1. Check your credit score

If you aren’t already checking your credit score regularly, make that a priority. Several credit monitoring services offer free access to your FICO score or VantageScore, and some of them even break down the factors influencing your score.

Some of the best credit monitoring services include Discover Credit Scorecard, Credit Karma, and NerdWallet. If your score seems abnormally low, it’s possible that it’s due to an error or fraudulent account.

2. Get a copy of your credit reports

You can get a free copy of your credit report from each of the three national credit bureaus — Experian, Equifax, and TransUnion — each year. Simply visit and fill out the form to get your report from one, two, or all three of them at once.

Read through your credit report — read this guide if you’re unsure how to read one —  and keep an eye out for accounts you don’t recognize. For each, you’ll be able to see the creditor’s name and contact information, the type of account, when it was opened, and more.

You also might see accounts you do recognize that have errors. For example, say you paid off your car loan a few months ago but the lender hasn’t tagged it as paid off. Or you spot a late payment when you have proof that you paid on time.

If you see anything like these examples, write them down or circle them on your report to tackle one at a time.

3. Call the creditors

The first thing you’ll want to do with an error or fraudulent account is to call the creditor and ask that they fix it on their end.

If it’s an error, explain the situation and let them know you have proof that it’s wrong. They’ll likely need your evidence for documentation, so have that on hand and find out how to send it over.

If it’s a fraudulent account, the process could be more difficult. Since you won’t have any hard evidence like you would with an error, it may take the creditor more time to verify that the account is fraudulent and remove it from your report.

One thing the creditor may require is a police report. So, be sure to file one with your local police station and submit that.

Also, let the creditor know that you’re planning to dispute the account with the credit bureaus. This may help them speed up the process as they know they’ll have to answer to more than just you.

You may need to follow up on them to get information about the status of your request. Don’t get complacent.

4. Dispute the items with the credit bureaus

Once you’ve spoken with the creditor, formally dispute the error or fraudulent account with all three credit bureaus. Here’s the link to do it online for each:

Once you’ve filed a dispute, it can take up to 30 days for the bureaus to respond. Again, you might need to provide some documentation, so include that in your original dispute, so you don’t have to go back and forth. This process can take time, but it’s necessary.

5. Work on your other credit issues

If you have some legitimate negative items on your credit reports, work on improving those while the creditors and credit bureaus do their job.

For example, if you have delinquent or collections accounts, work on getting caught up on your payments. If you have high credit card balances, pay those off as quickly as possible. Do the same with any other item that’s hurting your credit score. Target it and work on getting back on track.

Consider using your credit cards to build credit if you aren’t already doing so. Simply use your cards and pay them off in full each month. Over time, your positive payment history will help boost your score.

How long does it take to build credit? It depends on the factors influencing your score, but by developing these habits, you should start seeing improvement in a few months.

Should you try credit repair yourself?

Now that you know how to repair credit, the question is whether you should do it yourself or hire credit repair companies.

While you can definitely save money by doing it yourself, you may be way over your head if there’s a lot of fraud going on. In this situation, it could actually save you time and money in the future by hiring a credit repair company to get the job done faster.

But for minor stuff, it’s almost never worth it to pay to do something you can do yourself with a few quick phone calls.

If you do choose to hire a credit repair company, watch out for scams. Here are a few companies we trust:

  • Lexington Law: BBB Rating A-, $99.95 initial fee then $89.95 per month
  • Sky Blue: BBB Rating A+, $59 initial fee then $59 per month
  • The Credit People: BBB Rating A-, $19 for first 7-days then $69 per month
  • BBB Rating A+, $99.95 initial fee then $99.95 per month

Do your research to determine if those costs are worth it, but don’t take too much time. The sooner you figure out how to repair your credit, the better.

Editorial Note: This content is not provided or commissioned by the credit card issuer. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.

This article was last updated June 12, 2018 but some terms and conditions may have changed or are no longer available. For the most accurate and up to date information please consult the terms and conditions found on the issuer website.

Our editors independently research, test, and recommmend the best products; you can learn more about our review process here. We may receive commissions on purchases made from our chosen links.

Article Staff

Ben is a money and travel writer living in Utah. He has spent the past 10 years studying and working in the financial industry.

Ben has written for sites such as NerdWallet, USA Today, Money,, Credit Karma, and US News.

Ben loves giving people the tools they need to improve their financial health.

When he's not writing, Ben enjoys planning his next vacation, reading, and eating chips and salsa. You can connect with him at

Editor Jenna Holtz
Researcher Ronnie Langston
Art Director Cherry Barbacena

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