Developing a credit report is a long process and even keeping it in good state is a typical process. You need to keep working hard to have a good credit score and report.The first and most important thing to improve your credit score is to increase it is to decrease your credit availability to credit using ratio. Having this ratio at less than 50 % is all right and keeping it at less than 25 % is highly desirable. You shall use the smaller part of available credit to make the report better. The lenders will feel and believe that you are not dam hurry to spend your credit and had good financial management. Paying the existing balances will make the deal better.
One: Having a secured credit card is a very good way of starting the credit history as the creditor gives guaranty the payments by collecting the same money from you as security deposit.
So the simple method is
- Take a secure credit card by depositing the required cash from a local bank and you will be getting it at free processing fee and annual fee.
- Use the credit card occasionally at few occasions on each month.
- Pay the dues on time and you start establishing good history on paper.
You can get other credit cards basing on the first secured card and can establish the fresh line of credit on time. But the risk is if things goes wrong you fail to pay the bills on time, your will be effected seriously.
Two: Getting a personal loan basing on savings account as collateral will help in improving your credit score and report in a wonderful and simple way. This loans is reported as installment loan and paying them on time establish your paper strength. This loans are at low interest loans as there is no risk for the bank to issue the loan.
The combination of secured credit card and personal loan on bank account is a killing combination to start establishing your financial history.
Retail cards are relatively easy to get and will help you in improving your financial report. As they generally have low credit limit they can keep your available credit in good condition to have better effect.You can use this cards and pay the bills on time each month to have better effect. The target here is to establish good credit history and get the better offers form different lenders.To do this successfully make a planned credit.Have money and buy it on credit.Pay the bill on time and your credit score will be improved.
You are not expected to close your old accounts.The agencies are not going to see it in a positive way and reduce your credit score.Be careful about it.
To your credit report you can add 100 word statement as per FCRA.This if used properly can improve your FICO score.If computers are deciding to give a favor of loan or not,this statement may not make any difference in the decision.But if a prospective employer or the owner of a land is looking into your report to give a favor it may help you.We shall use all options available to make the report better.
Explain what went wrong and how your score is effected because of job loss or physical accident.Tell them that you have recover from the problem and you are now in good financial state to pay back all your bills on time.
You shall review and check your report at least once in a year from each credit reporting agency.Make sure that all the information present is correct and no outdated negative information is present in the report.Also check that all the required positive information is there in that papers.You can order one free report once in four months from different agency and hence more frequently cross checking your report.
How to protect your credit report from identity theft:
1.You shall be careful about credit card numbers,bank accounts numbers or any of the sensitive personal financial data.Care about them and keep them in a safe place.You can even shred the unnecessary one's for the sake of protecting them.
2.You shall not give your card numbers and social security number over the phone to some one you do not know.Do this only when you started taking to them and know with whom you are dealing with.
3.Don't have your social security card in your pocket and keep it in a safe place.
To your credit report you can add 100 word statement as per FCRA.This if used properly can improve your FICO score.If computers are deciding to give a favor of loan or not,this statement may not make any difference in the decision.But if a prospective employer or the owner of a land is looking into your report to give a favor it may help you.We shall use all options available to make the report better.
Explain what went wrong and how your score is effected because of job loss or physical accident.Tell them that you have recover from the problem and you are now in good financial state to pay back all your bills on time.
You shall review and check your report at least once in a year from each credit reporting agency.Make sure that all the information present is correct and no outdated negative information is present in the report.Also check that all the required positive information is there in that papers.You can order one free report once in four months from different agency and hence more frequently cross checking your report.
How to protect your credit report from identity theft:
1.You shall be careful about credit card numbers,bank accounts numbers or any of the sensitive personal financial data.Care about them and keep them in a safe place.You can even shred the unnecessary one's for the sake of protecting them.
2.You shall not give your card numbers and social security number over the phone to some one you do not know.Do this only when you started taking to them and know with whom you are dealing with.
3.Don't have your social security card in your pocket and keep it in a safe place.
4.Check your fico report for identity theft problems at least once in a year.
5.You are not expected to put the bills to be paid in the unlocked public postal boxes.
See this link about Identity theft in detail .The simplest and well disciplined way to maintain good score is to pay all bills on time.Chalk out a plan for that and write all dues to be paid at one place.Go through your check book and balance it to know how much money is there in the account to pay the dues and bills. Give time for the bills cleared and do not wait until the last minute.Pay a week in advance and there is no questions of late reporting then.
5.You are not expected to put the bills to be paid in the unlocked public postal boxes.
See this link about Identity theft in detail .The simplest and well disciplined way to maintain good score is to pay all bills on time.Chalk out a plan for that and write all dues to be paid at one place.Go through your check book and balance it to know how much money is there in the account to pay the dues and bills. Give time for the bills cleared and do not wait until the last minute.Pay a week in advance and there is no questions of late reporting then.
If things goes wrong meet a good lawyer or a credit councilor.He may prepare a plan to bay the debits in the best possible way and make it less bad.
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