Credit Repair Guide
Fix Your Credit — On Your Own, For Free
You don’t need to pay a credit repair company hundreds of dollars. Everything they do, you can do yourself. Here’s exactly how.
Where Does Your Score Stand?
FICO scores range from 300–850. Here’s what each range means for homebuying.
💡 FHA loans accept scores as low as 580. Most conventional loans want 620+. The best mortgage rates typically go to buyers with 740+.
What Goes Into Your Score
FICO scores are calculated from five factors — and knowing the weight of each tells you exactly where to focus your energy.
Payment History — 35%
Whether you pay on time is the single biggest factor. One 30-day late payment can drop your score 50–100 points. Set up autopay for at least the minimum on all accounts.
Credit Utilization — 30%
How much of your available credit you’re using. Keep it below 30% — ideally below 10%. If your card limit is $5,000, try to carry less than $1,500 on it at any time.
Length of Credit History — 15%
How long your accounts have been open. Older is better. Avoid closing old credit cards even if you don’t use them — they’re adding age to your history.
Credit Mix — 10%
Having a mix of credit types (credit cards, auto loan, student loan) shows lenders you can manage different kinds of debt responsibly.
New Credit / Inquiries — 10%
Every time you apply for new credit, a hard inquiry appears. Multiple hard pulls in a short period can ding your score. Avoid opening new accounts 6–12 months before applying for a mortgage.
The #1 Fastest Win
Pay down credit card balances to below 30% of your limit. This is often the fastest way to see a meaningful score jump — sometimes within 30 days of the next billing cycle.
Your 6-Step Repair Plan
Work through these in order. Each step builds on the last.
Step 1 — Pull Your Free Credit Reports
Go to AnnualCreditReport.com — the only federally mandated free report site. Get your reports from all three bureaus: Equifax, Experian, and TransUnion. You’re now entitled to free weekly reports. Download all three and review each line item carefully. Errors are more common than you think — studies show about 1 in 5 reports contain a mistake significant enough to affect lending decisions.
Step 2 — Dispute Errors on Your Reports
For every error you find — wrong account, wrong balance, account that isn’t yours, late payment you know you made on time — file a dispute directly with the bureau reporting it. You can dispute online at each bureau’s website (Equifax.com, Experian.com, TransUnion.com). Bureaus are required by law (FCRA) to investigate within 30 days. Include copies of any supporting documents. If they find the error, it must be corrected or removed. Common errors worth disputing: accounts that don’t belong to you, duplicate accounts, incorrect balances, old negative items past the 7-year reporting window.
Step 3 — Reduce Your Credit Utilization
This is the fastest lever you can pull. Pay down credit card balances as aggressively as possible. Aim for under 30% utilization per card and across all cards combined. If you can get to under 10%, even better. If you can’t pay the balances down quickly, call your card issuer and ask for a credit limit increase — this immediately lowers your utilization ratio without you spending a dime. (Don’t use that new limit though.)
Step 4 — Set Up Autopay for Every Account
Payment history is 35% of your score, and a single missed payment can undo months of progress. Set up autopay for at least the minimum payment on every credit card, loan, and account you have. Then pay more manually when you can. If you have any accounts currently in collections, don’t ignore them — call the collector and negotiate a “pay for delete” agreement, where they agree to remove the item from your report in exchange for payment.
Step 5 — Add Positive History if You’re Thin on Credit
If you have few accounts or a short history, there are a few ways to build credit fast. A secured credit card (you put down a deposit that becomes your credit limit) reports to all three bureaus and builds history just like a regular card — use it for small purchases and pay it off monthly. Another option: become an authorized user on a family member’s old, well-managed credit card. Their payment history on that card gets added to your report. Also consider Experian Boost, which lets you add on-time utility, phone, and streaming payments to your Experian score for free.
Step 6 — Be Patient and Protect Your Progress
Credit repair takes time. Most people see meaningful improvement within 3–6 months of consistent positive behavior. Don’t apply for any new credit in the 6–12 months before your mortgage application. Don’t close old accounts. Don’t co-sign for anyone. Check your score monthly through your bank app or a free service like Credit Karma or Credit Sesame. And when you’re ready to apply for a mortgage, ask lenders if they offer a “rapid rescore” — lenders can sometimes update your score in days if you’ve paid down a balance, which can qualify you for better rates before closing.
Realistic Score-Improvement Timeline
What to expect and when — if you’re consistent.
First dispute results come back. Utilization drops if you’ve paid down balances.
Errors removed from reports. On-time payment streak starts reflecting.
Score meaningfully higher if you’ve addressed utilization and disputes. Many buyers are mortgage-ready here.
Consistent payment history creates a strong foundation. Collections fall further in impact. Scores 740+ achievable for most.
Do’s and Don’ts Before Your Mortgage Application
Do These Things ✓
- Pay every bill on time, every month
- Pay down credit card balances below 30%
- Keep old credit card accounts open
- Check your credit reports regularly
- Dispute any errors you find immediately
- Maintain stable employment (2+ years at same job is ideal)
- Save consistently for your down payment and closing costs
Don’t Do These Things ✗
- Open new credit cards or loans
- Close old credit card accounts
- Miss a single payment on anything
- Make large cash deposits without documentation
- Co-sign for anyone else’s loan
- Change jobs right before or during the mortgage process
- Pay a credit repair company — you can do everything yourself
Ready to See What Programs You Qualify For?
Match with down payment assistance programs in your state. Many accept buyers with scores as low as 620.
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