12 Steps To Improve Your Credit


argOk, that’s it.  You heard your neighbors argue for 2 hours last night through the paper-thin walls.  You need a change and a place to call home, a place to call your own, a place where your kids can actually play in the “back yard”…Not the thin strip of grass between your apartment and the parking lot.  But you have an obstacle in front of you…your credit score is less than 620, which is the minimum credit score needed to obtain a FHA home loan.

 Here are 12 ways you can start to improve your credit score:

Credit6Step 1.  Obtain a copy of your credit report from each of the 3 credit bureaus by going to www.annualcreditreport.com.  This is a FREE service and does not provide your credit score.  You have to pay to get your credit score, but there are ways to get your FICO score without costs.  Reason – You gotta know where you stand and have a direction and plan.

Step 1.1 Get a copy of your credit scores.  Take a look at my article – Where is the only place you can get a real FICO score for no charge?  Reason – You gotta know where you stand and have a direction and plan.

Step 2.  Review each trade line (that’s the industry term for each credit account) for accuracy.  Study this closely and confirm current balance and maximum credit limit.  Reason – Incorrectly reported information on your credit report can be detrimental to your credit score for DECADES.

Step 3.  Keep your balance on each trade line to less than 30% of the maximum allowable credit limit.  Example, if your credit limit is $1500, make sure you pay down and keep your balance below $450.  Reason – The credit scoring system optimizes your credit score when the balance is less than 30% of the credit limit.

Step 4.  Ask your existing creditors to increase or expand your credit limit – if possible.  When you request an increase, they will credit11sometimes present you an offer of a limit increase without a credit inquiry — take it. If your credit STINKS, it’s a roll of the dice your creditor will expand your balance and of course your payment history with them must be flawless.  Reason – As related to tip #3, by increasing your credit limit it can help get to your max 30% balance.

Step 5.  Do not close good credit accounts or trade lines that have been paid on time.  Reason – The credit scoring system and you need all the “good” credit available.

Step 6.  Do not open any new credit accounts.  Reason – The credit scoring system is looking for a history of payments, and when it is less than 6 months old, the scoring system will not recognize the new account

Step 7.  However…If you do not have any good credit or need additional credit accounts, consider opening a “Secured” credit card through a large bank.  A Secured card means you place a $250 to $750 deposit with the bank and you borrower against it.  Also look into obtaining credit from a department store or gasoline company.  Reason – You need at least 5 trade lines to maximize your credit score, however, the credit scoring system is looking for accounts that are at least 6 months old – so get started NOW.

Step 8.  Ask your Mom or Dad or family member to add you as an authorized user on their credit card.  Reason – You need at least 5 credit accounts to maximize your credit score.

Step 9.  Pay your bills on-time and do not “skip” a payment.  Reason – Really?

Step 10.  Charge less and use cash or your debit card.  Reason – Again, really?

Step 11.  Be patient!  You didn’t get to this point overnight and the remedy most likely will take 3 to 12 months or longer.

sell3Step 12.  Seek professional help!  When it comes to paying off or settling collection accounts, past due accounts, judgments you need a professional to guide you through the maze.  Could you do it yourself?  Maybe – but most likely not.  There are a lot of rules and LAWS that the average consumer is just not prepared to handle on their own.  Be careful of the many so called “Credit Repair” companies and don’t buy the online hype about results.  There is no such thing as credit repair”.  However, credit validation, is a legitimate and proven strategy that can help you take control of your credit history and credit future

What is Credit Validation?

  • Detects, corrects or deletes inaccurate items using proprietary software
  • Direct communication with the 3 credit bureaus
  • The credit validation specialist will obtain their own Tri Merge Color coded Credit Report
  • Requires only ONE valid gov’t issued photo ID
  • 45-135 day process – no monthly fees
  • FTC Compliant

Take a look at the video below.



Improve Credit Score: Tips to Fix Poor Credit & Raise Your FICO Score

9 fast fixes for your credit scores – 1 – debt management – MSN Money

10 Ways to Improve Your Credit Score Instantly – ABC News

How to Raise Your Credit Score Fast – Quick and Dirty Tips

Ways to Improve Your Credit Score – Improving Your FICO Score

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