Have you been through a rough patch? Has your personal credit report suffered and your personal credit score fallen to sub-prime levels? If that is the case, you do not have to wait seven years to start seeing improvements in your credit report. In fact there can be many things you can do right now that will help increase your credit score over time and make you a much more attractive borrower in the eyes of the lender.
Taking a few simple steps may be the difference between you having improved personal credit score within a couple of months vs having to wait several years for your credit score to be improved.
If you are down on your luck and need some way to improve your score here are a few tips that will help you improve your personal credit score.
Secured Credit Cards: Obtaining couple of secured credit cards can impact your personal credit score by as much as 150 points. Most people with bad credit will have to go the secured credit card route because banks will be reluctant to lend to you. At least two open credit accounts will have a positive impact in your personal credit report.
You should probably get a secured credit card with the minimum balance required by the bank. And do not let the balance on the card to to zero. Keep a revolving balance on your credit card at all times.
Credits to Avoid: You should probably avoid store credit cards, furniture cards, and all of those type of credit. All credit is not created equally and generally store, furniture cards etc are associated with poor consumer credit. If you must use these cards go ahead and use them but you should always strive to pay off your store credit card.
Collection Accounts: If you have accounts that were sent to collection agencies then you should doubly verify your personal credit report. Collection companies routinely pass accounts back and forth and same debt maybe reported there multiple times. You should contact the creditor and ask them to remove such debts when they are passed along to different collection agency. This method will not delete legitimate debt, however this will remove duplicates, which will have a positive impact in your personal credit report and ultimately your personal credit score.
