| It is estimated that approximately 33 millions Americans | | | | steps will help you improve your credit score: |
| struggle with some form of bad credit. This is about | | | | 1. Get a copy of your credit report. Take advantage of |
| 10% of the entire US population. | | | | the free government credit report from each of the |
| One's credit history is becoming increasing important. | | | | National Consumer Credit Bureaus: Equifax, TransUnion |
| For people struggling with bad credit, sometimes, it | | | | and Equifax. This will help you to understand your |
| feels like the number is tattooed on your forehead, | | | | starting point. It will answer the question - "how bad is |
| especially, if you've made an attempt to secure a | | | | my credit?" |
| home loan, auto loan or personal loan. | | | | 2. Apply for a line of credit. You can apply for an |
| The fact is that creditors are not eager to extend a | | | | unsecured credit card or a secured credit card. |
| line of credit to you, if your FICO score is not above | | | | 3. Once you have the card, do not max out your credit |
| the 650 range. There are a number of reasons why | | | | card. Try not to exceed 70% of the credit card's limit. |
| your FICO score may be low - bankruptcy, too much | | | | For example, if the credit card limit is $1000, you should |
| debt, not paying your bills on time, etc. | | | | only charge up to $700. |
| The good news is that your credit score can be | | | | 4. Always, pay your bills on time. This accounts for |
| improved. The key to increasing your credit score is to | | | | 35% of your FICO score. It's the most important factor |
| maintain a line of credit and prove to your creditors | | | | in proving your credit-worthiness to your creditors. |
| that you are capable of paying your debts on time and | | | | Practicing these four simply principles will help you to |
| not maxing out your credit line. These four simple | | | | increase your credit score in the coming months. |