Many times when consumers have bad credit they are unsure how to go about doing things that will increase their credit score. When it comes to increasing your credit score it is actually very easy, but keep in mind good credit will not happen overnight and does take time to increase your credit score up and it takes good habits to keep it there once you improve it.
Pay Your Bills On Time-While this may seem very basic to many people the first thing that you must realize is that no amount of credit repair efforts will work if you do not pay your bills on time.
Often times you can be a few days late if you come up short but never let the bills get 30 days late. And even if you are going to be just a few days late always call the creditor and let them know, they may wave their late fees if you call but only if you ask.
Do Not Max Out Credit Cards- Maxing out your credit accounts is a great way to lower your credit scores and label yourself as a risk is to potential lenders. Any time your balances go over 50% of your limit your score starts to go down.
If you are above this percentage you can call and ask the creditor for a credit line increase to bring the ratio back down. However you must be very careful not to incur more debt by using the extra credit line to make frivolous purchases.
Do Not Apply For Credit All Over- The worst thing you can do when trying to increase your credit score is to try and establish credit before you are ready.
If your credit is poor and you keep applying for credit only to be turned down the extra and excessive inquires will decrease your credit score and throw up a red flag to potential lenders that you are a risk. So until you have brought your credit up to a certain level do not apply for new accounts.
Use Secured Credit Cards-Secured credit cards are a great way to build your credit and out of all the bad credit tips the one that out performs all others it would be using secured credit cards. These cards are secured by a cash deposit you make into an account.
If you do not pay the lender takes your money to cover the card. Because the lender is assured the money is available to cover the card approval are almost 100% guaranteed