How To Improve Your Credit Rating

Recent surveys given by the National Foundation For Credit Counseling had some interesting results. It turns out that people are more embarrassed to reveal their credit score than they are to reveal their weight.

While losing weight on a crash diet is not a good idea, you can take a crash course and improve your credit score in a short amount of time. However, just like when you try to lose weight, this short amount of time will not be a firmly set time frame. You may not see improvement on your score for 30 or even 60 days.

Your first step should be visiting AnnualCreditReport.com to request a copy of your credit report. Each of the 3 main credit reporting companies is required to provide you with 1 free copy each year. By spreading out your requests, you can order 1 every 4 months. You can learn more through this video:

Simple Yet Effective Ways To Improve Your Credit Rating

You can then apply the following tips to start boosting the score that has so much impact on your financial life.

1. Dispute any errors. Even major companies make mistakes. If you find an error, you can dispute it online at the major credit reporting bureaus: TransUnion, Experian, and Equifax. Once you have corrected any errors, you can…

2. Negotiate with your creditors. You can’t hide the fact that you didn’t make any payments on your credit card while you were employed. However, if you ask, some creditors will be willing to erase your debt or account that has gone to collections. Write a formal letter, and consider offering to repay the balance in exchange for the creditor taking their mark off your credit rating, or, at least, marking it as “paid.”

3. Pay attention to credit limits. You want to ensure that the credit limits shown on your credit report are current. The last thing you want is to look like you are making out your credit cards every month. If the company that issued your card didn’t update their record when they increased your limit, you need to request it.

4. Obtain a credit card. Having an open credit card is not a bad thing. In fact, it can actually increase your credit rating – as long as you don’t max it out or pay your bill late. You will have to be a responsible credit card user.

If you don’t qualify for a traditional credit card, don’t worry. Look for a secured credit card, just make sure that it is one that will report to the big 3 credit bureaus. If that still isn’t possible, consider the next tip.

5. Ask to become someone else’s authorized user. This will mean asking a friend or relative to add you to their current credit account. If you don’t have a good history with finances, don’t be surprised if few are willing to take the risk. However, you never know unless you ask, especially if your problem is no credit instead of poor credit.