How long and how difficult it will be to build your credit score really depends on your personal circumstances
. When I talk to consumers who have a very low credit score, I tell them to be optimistic because when your score is low it has nowhere to go but up!
No matter your circumstances, here are 5 things you can do to increase your credit score by 20 points within 6 months.
1. If you have no credit or are re-establishing after having bad credit obtain a secured credit card that reports to the credit report. Only use what you can afford to pay in full each month and never exceed 75% of the limit as a balance.
2. Stop applying for credit (this includes inquiries for bank accounts, credit, insurance etc).
3. Pay any accounts that are in arrears up to date and make at least your minimum payments on time.
4. If you have any credit card balances that have a balance that are over 75% of their credit limits, pay them down to below 75% of the credit limit.
5. Do not close any existing credit accounts.
While your credit score is important, what is more important is the state of your entire financial profile. Banks look at a lot more than your credit score when determining your credit worthiness.
There is a new online service called True Assess. Consumers can go online and obtain their Financial Report Card. Your Financial Report Card grades the areas (applying the same principals) of your financial profile that are considered by banks when deciding if you are worthy of credit. You are then provided with recommendations to improve your low grades to improve your credit, finances and increase your overall borrowing power.
A strong financial profile = convenience of credit and the lowest interest rates. Get your Financial Report Card, you cant afford not to. www.trueassess.com.