| i> | | | | Call creditors to ask for a lower interest rate. Many will |
| Use your 3 free credit report checks! Order your | | | | give it to you. If you don't ask, they won't offer. |
| reports from the government mandated annual credit | | | | Work out a payment plan with creditors if you're |
| report and check them for any errors that could be | | | | struggling. This will prevent your account from being |
| spoiling your score. Look for late payments, | | | | turned over to collection agencies - the kiss of death |
| delinquencies and misspellings that may mean | | | | to your credit score. |
| someone else's report is mixed up with yours. | | | | Ask a family member for a loan to pay off debt; their |
| Dispute each and every item you've flagged as wrong. | | | | terms will likely be far more agreeable. |
| Protest to the credit bureau that is reporting it as well | | | | Increase your credit limits. This will help your |
| as the creditor. Send the bureau copies of your | | | | debt-to-limit ratio (or credit utilization ratio). When your |
| evidence that the information is wrong. | | | | limits go higher, your existing debt represents a lesser |
| Don't open any new credit accounts during your credit | | | | percentage of your total available credit (the goal is to |
| improvement period. | | | | bring it under 30%). But do NOT increase your |
| Do not close any accounts during the improvement | | | | balances. |
| period (your credit limits, put together, can help minimize | | | | Pay bills immediately when they arrive. If you send the |
| your debt-to-limit ratio). | | | | money out before the next statement is generated, |
| Pay every bill on time, every time. This is the biggest | | | | your creditor will report your paid balance ($0) versus |
| thing you can do to instantly begin transforming your | | | | your statement balance (what you owed). |
| credit score. | | | | Use old cards occasionally. Your oldest accounts |
| Add a consumer statement to your credit report to | | | | count toward your credit history length (long is good) |
| offset any big negatives like bankruptcies, liens etc. | | | | but may not be factored in if you don't use them |
| The statement gives your side of the story. Contact | | | | every 6 months or so. |
| customer service at the credit bureau. | | | | Don't neglect other bills. Don't assume you just have to |
| Improve debt-to-credit limit ratio. Pay down your debt | | | | pay credit cards and loans on time to keep your credit |
| to get it below 30% of your total credit limits (all cards | | | | spiffy. These days utility, phone companies and others |
| combined). Don't ever go over that threshold of debt | | | | are reporting to credit bureaus. |
| or your score will plummet. | | | | Avoid secured cards. Though they're usually pitched |
| Ask for rapid rescoring from your lender. This new | | | | as a way to establish credit, often they're viewed as |
| process allows a new credit score to be generated | | | | the card of last resort for people who can't handle |
| within a few days after you complete some | | | | credit. There's dispute as to whether a secured card is |
| credit-improving task such as reducing your debt. | | | | assessed differently when computing your score. |
| Only use your lowest interest rate credit card. Put the | | | | Some say yes, others say no. If not, a secured card |
| others away while you pay them off. Every bit of | | | | could help your case. |
| interest reduced helps when you're trying to turn your | | | | Bring delinquent accounts up to date. Though it could |
| credit around. | | | | take you months, as soon as you "square" one |
| Have a stable address. Spend at least 2 years in one | | | | account, it will begin to shed its negative stigma in 6 |
| place. Credit reports are said to give some weight to | | | | months or so. |
| this. | | | | Prune your cards. More cards are NOT better. 15 or |
| Create a stable employment history. Don't switch from | | | | 20 are way too many. Too much credit limit worries |
| job to job. Creditors like stability. | | | | lenders, who fear you may get in over your head. |
| Finish the next rung in your education. Some scoring | | | | Don't close your oldest cards, but slowly begin closing |
| systems may factor in education level. | | | | excess accounts over time. The process should occur |
| Do not get arrested, or sued. Both can show up on | | | | over a year or so. |
| your report. | | | | Open checking and savings accounts at your local |
| Watch your mail. Pursue a bill you're expecting if it | | | | bank and keep them in good standing. |
| doesn't arrive as scheduled. If you don't, you'll be | | | | Try your bank for a credit card. If you can't get a |
| penalized even if the bill never arrives. | | | | major credit card, go to the bank where you hold your |
| Have highly negative items removed as soon as | | | | checking accounts. They may give you a bank card |
| possible. Request bankruptcies, tax liens, foreclosures | | | | with a small limit. Treat it well and your score will |
| etc., be removed. 7 years is the maximum time they | | | | improve. |
| may be reported. There is no MINIMUM time they must | | | | Apply for a loan that you can handle. The best way to |
| remain, so ask, and keep asking. | | | | build credit score is to handle credit responsibly. Apply |
| Request old negative information be removed from | | | | for a mortgage or car loan and pay it on time every |
| your report. Once you are in good standing with a | | | | month. |
| creditor, request that an old item (for example, a late | | | | Talk to a live person. Creditors often have real |
| payment) be removed and no longer reported. There | | | | operators to talk to; they're a good place to start in a |
| is no minimum limit that this information must stay on | | | | dispute. If you don't receive what you want, contact |
| your report. Ask for this as a goodwill measure. | | | | the credit bureau to dispute negative items on your |
| Know exactly what you make each month. Cut costs | | | | report. |
| and use the difference to pay toward debt. | | | | Automate your payments. Do not leave bill paying to |
| Don't foolishly endanger your identity by carrying every | | | | chance. Have payments auto-deducted from your |
| credit card you possess. Carry only your primary card. | | | | account and never worry again. The whole setup |
| Leave your social security card and other | | | | process will take just a couple of hours. (Make sure |
| non-essential documents at home. Identity theft can | | | | you have overdraft protection on a savings account). |
| take months to sort through and your score could be | | | | Cut deals. When you pay a creditor, ask them to |
| devastated. | | | | remove a negative notice about you at the same time. |
| Don't ever close your oldest accounts - these give | | | | Many are happy to do this. It's appropriate to ask for a |
| your credit history its timeline and the longer, the better. | | | | written promise before sending your payment. |
| Have a mix of credit. This includes retail store charges, | | | | Always be polite rather than aggressive when dealing |
| car loans, credit cards, gas card, mortgage, etc. | | | | with creditors and credit bureau personnel. Remember |
| Have someone cosign for a credit card. If you can't | | | | that they are people with the power to grant your |
| get credit, ask a close friend or family member with | | | | requests. You can always threaten legal action later. |
| good credit to add you to their account as a signer. | | | | Keep a small balance on your cards; it may be better |
| Just make sure to pay those bills or your co-signer's | | | | than carrying a $0 balance. It shows you can handle |
| credit will suffer! | | | | credit wisely. |
| Don't ever max out a credit card by combining all your | | | | Don't forget to order your credit score. They cost |
| debt on it if it puts you near your credit limit. Instead, | | | | around $5 from Benchmark your score every year so |
| spread a large debt over two or more low interest | | | | you can measure its improvement. Good luck! |
| cards. | | | | |