How to Improve My Credit for Free
- 1). Take a class in financial literacy. These classes, often free, are available through nonprofit credit counseling agencies and some charitable organizations. Check with local charities in your area such as the United Way, Urban League or Salvation Army. Ask a loan officer at your bank or credit union to recommend a reputable nonprofit credit counseling agency. Financial literacy classes include information on budgeting, credit management, eliminating debt and more. Free one-on-one counseling is also available at some agencies.
- 2). Improve your credit for free by using some of the principles learned in your training. Start by making a commitment to pay your bills on time. That means making at least the minimum payment -- on all your accounts -- every month before the due date. Privacy Rights Organization, a nonprofit consumer information service, says paying your bills on time is one of the most important things you can do to improve your credit.
- 3). Reduce your debt. Pay down your credit card balances to at least 30 percent of your available credit. Creditors like to see that you are responsibly handling your credit by keeping balances low, according to MSN Money. Paying your bills on time and reducing your debt could quickly help you improve your credit -- for free.
