Feb 25, 2020
Your credit score is a faceless, contextless three digit number on a computer screen or a piece of paper. It was created by an algorithm that doesn’t care why you couldn’t make ends meet one month — and you don't even get to defend yourself.
That’s why it can be so frustrating when your credit card application is rejected, or your interest rates shoot up, or you're turned down for an apartment based on something as seemingly arbitrary as your credit score.
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The good news is you’re not saddled with that number forever. Your credit score is constantly changing, and there are plenty of moves you can make to raise your credit score.
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Here are your first five steps to take this week to improve your credit score.
1. Get all the facts
Once a year, you can request a free copy of your credit report from each of the three major credit bureaus, either online, by phone or by mail. And you should.
When it arrives, you should read each credit report carefully. Mistakes happen all the time, and it’s your reputation (and score) on the line — so do your own due diligence and investigate. Make sure there are no mistakes on your report, like old debts you’ve already paid down or erroneous “missed payments.”
If there are mistakes on your credit report, fret not. It’s an easy fix. You can dispute the mistake by calling up the creditor, who then has 30 days to investigate. If it’s deemed to be an error, it’ll fall off your credit report within a month.
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2. Call a truce with your creditors
Let’s say a bill got lost in the mail and you accidentally missed a payment. Or life happened, and you weren't able to make ends meet one month. Nobody's perfect — we've all been there.
All you have to do is write a “goodwill letter” explaining to the creditor why you weren’t able to make your payment on time. Your letter should be concise and to the point, and most importantly, should make a strong case for why you deserve their help.
The creditor isn’t obligated to remove the blemish, but then again, it’s more likely to work than doing nothing at all. So why not take a chance?
If a goodwill letter doesn’t pan out, don’t sweat it. Missed payments won’t stay on your credit report forever, and a couple bumpy spots in your history aren’t the end of the world.
3. Get the experts on the case
4. Ask someone else to pay your bills this month
5. Let this company rescue your savings
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Sarah Cunnane was formerly a staff writer at MoneyWise. She is a writing and marketing professional with an Honors Bachelor's degree in English and Creative Writing from the University of Toronto.
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