How To Build Credit - This Is My Story On How I Improved My Credit Score.

I can remember a couple of years back when I had a poor credit score

, and more issues on my report than I care to recall. I had no clue on how to build credit. Here I was with a credit score in the low 500's and nobody would approve me for anything, without ripping my head off with high rates. Thankfully though I had a background working with credit, and that forced me to start taking a deeper look into how to build credit. I would like to share with you my story and how my credit has reflected back.

First it's likely good for you to know where I started at. In 2003 I opened a business and ended up not doing to well with it for a bit. It was my first foray into being self-employed and this led to some real havoc on me financially. I couldn't afford to put gas in my automobile on occasion, much less the money to pay for my obligations in a timely manner. I ended up getting things together, but by that point the damage was done. I had several credit cards that ended up being charged off and the bill collectors were coming after me.

In December of 2007 I had an auto that started breaking down on me. I was 28 years of age and I needed to ask my dad to cosign on a loan with me so I wouldn't have to pay an interest rate at around 18%. By having him cosign for me I was able to get an interest rate at 4% and I still have that car to this day. I have saved thousands of dollars in fees because of this. This, by the way, was the 1st credit I had since the issues I had in 2003.

With having this car loan now reporting on time payments, ultimately I was able to get accepted for a Mastercard in May 2008, but the limit on the card was only $400. While that was great and all, with my past credit history it took a long time for any other company to approve me for anything. Another choice for me at this time also would have been to get a secured credit card to couple with the other credit I was building.

Come to find out, the credit limits on credit card accounts have a ton to do with our capabilities to get more credit. The higher your credit limits, the better it is for your credit. Think about it, if you're making an application for another Mastercard and have had some problems during the past financially, then it's tough for any company to get a good read on whether or not you'd be a good credit risk. This holds particularly true if you are available revolving credit is only $400.

This is when I began learning about credit repair. I had a choice to make. I could either wait for 7 years minimum for this information to fall off my credit report, or I could kickstart things and find out how to do the credit repair. I selected to kickstart things, and I'm so cheerful I did. To make a long story short, i have been able to get pretty much everything removed except two things, one being an open charge off account that has had some illegal charges added to it. I could even bring a court action against this company because they're obviously violating my rights because they have not managed to come up with a full accounting of how they got their figures. This account is lined up to fall off in just a couple of months so I haven't bothered.

Needless to say I have had a pretty substantial improvement in my scores with all 3 of the bureaus. I have now qualified for 2 more unsecured mastercards and may continue to see major enhancements in my scores over the following year. Now knowing precisely how credit works, I also got a $5,000 credit line that reports to the bureaus. Now this is not a traditional account, and I can't use it for much of anything apart from to purchase ebooks online from their website, but it's's a wonderful account to have that has helped my credit score rather a lot, and opened up the door to afford me the chance to get the unsecured credit cards.

Had I not known how to build credit, or learned credit repair then I'd be miles away from where i am at the moment. This has got me thinking, because I am really no different than anybody else which has had problems financially in the past. The big difference is that I learned how to build credit and I would like to be well placed to share my experience and knowledge with anybody that is willing to learn. These methods work 100% of the time if implemented properly, but this is all done with the long -term in mind. If you have a long term vision you too can have these kinds of results.

by: Robert Atkinson

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