8 steps to speedy credit score repair

Use credit cards properly and correct information reported to credit bureaus

If your credit score is 760 or above, move on, you're already getting the best interest rates. Anywhere below that, however, read on and improve your score.

1. Get a credit card if you don't have one.

Having and using a credit card or two can build your scores. Look for a card that reports to all three bureaus: Equifax, Experian and TransUnion. If you don't qualify for a regular credit card, consider a secured credit card, where the issuing bank gives you a credit line equal to your deposit. 

2. Add an installment loan.

You'll get the fastest improvement in your credit scores by also showing you're responsible with installment loans (personal, auto, mortgage, student). If you don't have any, add a small personal loan to pay back over time. Make sure it's reported to all three bureaus.

3. Pay down your credit cards.

Lenders like to see a big gap between the credit you're using and your available limits. Getting your balance below 30% of the credit limit on each card helps; getting balances below 10% is better. Pay down the cards closest to their limits 1st, rather than the highest rate cards.

4. Use your credit cards lightly.

Big balances can hurt your scores, even if you pay your bills in full each month. Spread the load around among your cards, and pay balances before the closing date to reduce the amounts reported to the credit bureaus.

5. Check your limits.

Your lenders might be showing a lower limit than you actually have, which will lower your scores. Your credit card issuers will update the information when you ask them.

6. Dust off an old card.

The older your credit history, the better. But if you don't use a card, it won't be weighted as heavily in the credit score formula. Charge a recurring bill to an old card or use it once per month.

7. Cash in some good-will.

If you've been a good customer, a lender might agree to erase that one late payment from your history. Ask for it in writing. For a more troubled account, ask that it be re-aged, which erases previous delinquencies once you've made a year of on-time payments.

8. Pick your battles.

Here's what's worth correcting:

- Late payments, charge-offs and collections that aren't yours.

- Credit limits reported as lower than they actually are.

- Accounts listed as "settled", "paid derogatory," "paid charge-off," or anything other than "current" or "paid as agreed."

- Accounts that still are listed as unpaid that were included in a bankruptcy.

- Negative items older than 7 years (10 in the case of bankruptcy) that should have automatically fallen off your credit reports.