A credit score can’t be rebuilt overnight. If you’ve encountered tough times and have seen your credit score drop in recent years, the sad reality is it will take some doing to get it to where it’s respectable again. All the more reason to start rebuilding as soon a possible, here’s how:

Find and correct errors- Credit reports are extremely complicated to compile, even if you know yourself to be in debt, don’t ever assume that a credit report is accurate. There may be errors on it that add to your problem. Often there are debts listed as outstanding when in fact you have paid them. These days, identity theft is also a real threat, there may be debts on your credit report that you didn’t incur at all.

Your credit report is the basis of your credit score, the last thing you want when you are in debt is to have a credit report that is errant to your detriment. Should you find errors on your credit report, you will need to file a written complaint with all of your supporting documents attached. The Federal Trade Commission will investigate the issue and rule within 30 days. Should they find in your favor you could get a boost from between 50 to 100 points.

Settle your balances- It’s a simple and obvious enough tip, but not many realize the actual impact. Your credit utilization ratio comprises 30% of your credit score. This is the ratio between the amount of credit you’ve used, and the amount you’re entitled to. A ratio higher than 30% can really damage your credit score.

Automate all your loan payments- In this day and age, there are few institutions that can lend you a substantial amount of money that don’t provide a means to settle your debt automatically. If you have a lot of bills and debts to pay, it’s easy to lose track of what needs to be settled and when. Set up electronic payments for all your debts, this should prevent you from incurring any additional penalties due to late payment.

Should you manage to follow these tips religiously, you will have a perceptibly better credit score before you know it.

Related posts:

1. Credit History & Your Loan Rate
2. How Much Home Can You Afford?
3. Credit Card Legistlation to start February 2010

Post: 3 Ways to Revive Your Credit Score taken from: Ratelines.com