How do you show lenders, employers and landlords that you're trustworthy, able to manage money and fulfill your promises? Your credit score. This is your financial report card on how well you keep promises and better yet, it's indicator of your responsibilities and how you handle them.
Your credit score will have the most repercussions on your life. This can be positive or negative. From being approved for a mortgage to an auto loan. The higher your credit score gets, the easier it will be to obtain any material item at the best possible rates. When you have a high score banks will throw money at you and are willing to gamble on flexible repayment terms because you've shown you are worthy.
Not everyone shares this luck. Many have a below average or poor credit score, however, there are steps you can take to improve your credit worthiness.
The credit score is determined by the all positive and negative information or trademarks that appear on your report. Some of the information will weigh more than other data, so when working to raise your credit score you want to start with those negative areas having the most impact.
1. The first obvious thing that you can do to improve your credit score is make payments on time. Creditors report payments to the credit agencies either every 30 days or every quarter. Therefore, you can pretty much guarantee if your bills are paid on time, your score will rise within 3 months.
2. Next, you want to review your report to see if there is not false information on there. Perhaps, your creditor has placed a negative trademark saying you paid late when you didn't. You want to write to the credit agency denying this and asking that it be corrected. Now, if you have proof, this can happen much quicker and they'll have no other choice but to update favorably. Without proof will take longer to correct.
3. You want to consider a pre-paid credit card. Now, their terms are not favorable to consumers, however, if you have a strategy in mind, I recommend getting a pre paid credit card for this purpose. Pre paid creditors will update records with the credit agencies every month. If you are making payments on time, this will raise your score quickly. Now strategize; you don't want to create a bigger problem by taking on debt that you cannot pay. So this pre paid credit card should have a low limit and only be used with the strategy of spending enough for you to create good responsible habits.
4. If you have a savings account with a minimum of $500 saved up, ask for a personal loan with your savings account as collateral. A bank loan is the perfect choice of showing responsible payment habits and will give you a significant boost in your credit rating.
There is really no quick fix or tricks that will boost your credit rating. It takes time to undo what you took years to create. While most people become unmotivated by this information, others will look at it with enthusiasm knowing in a minimum of 3 months, your credit rating can move up some points and you can start on a path of material riches.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
Unsecured Credit Card Debt
By: TM | 22-08-2008
I live in Oklahoma. My question is about unsecured credit card debt.Can the credit card companies put a lien on my home for non-payment of the debt? I have a Homestead Exemption filed.Also, can my wages be garnished for these unsecured debts? Thanks, TM
Domesticating a Default Judgment in FL and Car Lien from Creditor
By: Sharonzzzzz | 03-08-2008
I have a default judgemnt and the attorney for the creditor (Cach LLC) said he is going to domesticate the default judgment in Florida and then put a lien on our house and cars. The default judgment is in my name only (not my husbands). First...can you domesticate a default in Florida? I've heard you can't. Second...can they put a lien on my husbands car? The title says both our names with OR (not AND). They are both paid off in full. Third...if they do put a lien on the cars, can they then come and get them or do they have to wait until we try to sell them. Thank you.
Bank Account and Credit Score
By: Shirin | 17-07-2008
Is it bad for your FICO score to have a couple of different bank accounts? Is it bad to close bank accounts in general like it is to cancel a credit card?
What happens to our credit score if we refuse to pay our daughter's rent.
By: Grandma2acc | 21-06-2008
We have a 789 credit score at present. What would it do to our credit score if we refuse to pay our daughter's rent, in an apartment she rented and we cosigned for? She refuses to pay the rent, so we have been paying it. Can't anymore, and if we don't pay, they will evict them. If we don't pay it, what will happen to our credit score? We understand we would eventually be responsible for the rent for the remainder of the lease, just worried about what it would do to our credit standing.
If you have a car that is being paid off but still ...
By: moe | 16-06-2008
If you have a car that is being paid off but still owe on credit cards and another car loan can a lean be put on the care that is paid off????? My brother lost his job and has gone into default on everything except this car because i have been paying for it for the past 3 years
What is consider a high credit score, when buying ...
By: carshopper | 29-05-2008
What is consider a high credit score, when buying a used car. Need to get a rate 8% or lower.
Q&A Powered by:
Latest Credit Articles
How To Cope With Credit Card Debts
By: Stephen Chua | 10/10/2008
Credit card debts can be very stressing for many people. However, there are many things you can do to cope with it. This article reveal some of the things you can do now to reduce your debts and stress.
Credit Repair and the Secret to Rebuilding Your Credit
By: Jim Kemish | 10/10/2008
Credit repair can produce life changing results. The process can be quick and satisfying if you know what to do. A credit repair expert reveals powerful credit rebuilding secrets that will help you reach your goals easily.
Tips On Receiving A Bad Credit Loan
By: Kay Brown | 10/10/2008
One of the biggest causes of stress and marital breakup is financial debt that couples incure in effort to acquire the good life.
Is it Possible to Raise My Credit Scores?
By: Chane Steiner | 10/10/2008
The first consideration when you're trying to raise your credit scores is to know where you currently stand. Everyone has scores that range between 300 and 850. This number determines if a creditor will extend credit to you as well as interests rates you might pay, is based on your ability to repay a loan, the interest rate you might be offered, as well as often determining rental or mortgage payments.
Consider Business Credit Card in Your Business Operation
By: optimizer | 09/10/2008
If you’re on your way to start a business or have already established a business, perhaps applying for a business credit card would be your next move. There are many advantages in using a business credit card and being able to build your business credit history is just one of them.
Credit Secrets and Myths
By: Rook Davis | 09/10/2008
Good credit is a great thing to have, but beware of the supposed "shortcuts". Find out what things can get you in hot water.
Verify Your Client Credit Cards With Bin Database
By: Gen Wright | 09/10/2008
BIN Database is a useful service for online merchants, online payment processors and other financial institutions that will help them in verifying their customer's appliations by checking BIN numbers of their credit cards. BIN Database contains the information about the issuing bank, country, and credit card type.
A Quick Word of Advice for Students Looking to Take Out Loans
By: Gen Wright | 09/10/2008
There are many reasons why a student may wish to take up loans. Sometimes, these reasons appear very logical at that time.
More from David Kamau
ID Theft Protection - Ways to Prevent Identity Theft
By: David Kamau | 15/07/2008 | Credit
Identity theft, or simply ID theft, is the fastest growing crime in America. The reason is simple; it pays and often the criminals off with light sentences. This article offers ways to prevent identity theft.
Understanding Your FICO Credit Score
By: David Kamau | 15/07/2008 | Credit
The FICO credit score, or simply FICO score, is perhaps the most important aspect of your credit report and history. Why is it important? Because it is the score MOST creditors use to rate your risk level, and determine whether to give you a loan or credit and at what interest rate.
BBW Personals: Big Beautiful Women Dating Online
By: David Kamau | 15/07/2008 | Dating
For men (and women) who love plus-sized women, and the big beautiful women out there, you may want reap the many benefits of BBW personals sites.
Adult Photo Personals - Make Yours Memorable
By: David Kamau | 15/07/2008 | Dating
Getting your profile noticed with an adult personal photo isn't difficult if you know the flattering qualities one looks for. The competition is unyielding, so it's imperative you show off your best assets to flaunt your personality and grab the attention.
Advice for Dating Someone with Children
By: David Kamau | 15/07/2008 | Dating
If looking for good advice for dating someone with children, you've got a difficult task ahead of you. Relationships are complex on their own, but adding children to the mix can make things a good deal more complicated.
Big Beautiful Women and Their Admirers Meet At BBW Dating Sites
By: David Kamau | 30/10/2007 | Dating
BBW is an acronym for big beautiful woman. And, big beautiful women and their admirers now can find plenty of company at BBW dating sites.
Adult Webcam Personals: Dating and Fun Live On Video
By: David Kamau | 23/10/2007 | Dating
Adult webcam personals are hot right now. After all, living your wildest dreams live before your computer screen is the next best thing to the real thing.
Credit Repair: 10 Simple Steps for Quick Credit Repair
By: David Kamau | 19/10/2007 | Non-Fiction
We live in a credit-driven economy, where bad credit can cause life to be miserable. This article offers simple steps towards quick credit repair and some common mistakes to avoid.
Finance 
