How To Improve Your Credit Score
A good credit score is slow to build up and quick to drop. There are legitimate ways to build your up your score.
Bankruptcy will improve your credit score. Chances are, if your credit is really bad, filing bankruptcy will actually improve your credit score. Bankruptcy will wipe out all of the bad debts and give you a clean slate to start over with.
Paying on time the most important thing. Set up your payments on an automatic draft or bill pay so you are not late.
Pay your bill in installments. If you run up charges that are close to your limit each month you should make your payments in installments. Pay half before the closing date and the other half after the closing date.
Pay the most on the card that is near the limit. Cards that are near the limit will depress your overall score.
Look for and dispute errors on your credit reports. Removing errors or inaccurate information can make a big difference in your score.
Be an authorized user on a family member's account. Piggybacking on a family member with a high credit score will give you the benefit of their credit history. This only works for members of the same family.
Write an explanation and have it attached to your credit report. Your can write a note of up to one hundred words explaining your situation. This will let prospective lenders know your extenuating circumstances.
Make sure your loans are different. Having only one type of loan, like credit cards, on your reports can keep your credit score down. Getting a new type of loan, personal or auto, may give your score a boost.
Have you seen all the ads from credit card companies recently talking about the "new" business card option available to individuals? They are sending out over 10 million offers to households for professional credit cards each month according to a study done recently by a D.C.-based consumer-advocacy group! Credit card companies are now marketing these cards because of a loophole in the new regulations - "business" credit cards were excluded from the requirements that were added for consumer protection (like protection from sudden interest-rate hikes, etc) on basic consumer credit cards. Bottom line - consumers don't have protection under these so-called "business" cards! A few Senators have grouped together to urge the Federal Reserve to crack down on the marketing of these "business" cards. Senators are asking the agency to require credit card companies to clearly warn customers. Where there is a regulation, there is a will to find a way around it! Be an educated consumer!
