Improving credit score is important to get the favorite deals like auto loan or mortgage at lower interest rate.Once if it is bad for some reason like a late paid bill,you shall take some corrective measures to improve it.As it is mentioned in the previous post,paying the debt and consolidating it makes a difference to the finance score.Any way you need money for that and let us try to find out different options to raise fund for filling the gaps.
1.Going for a yard sale like unnecessary items,cloths,items and you can use channel like e bay for this process.This may give you some money to fund your bills.
2.You can reduce your spending and try to have sort of self discipline.Roaming around lead to the money spending and you can save it by entertaining yourself at home.If you write down every penny you spend and check out its need,you can analyze and restrict yourself.
3.Doing a second job during the night time is surely a difficult task and you can consider this as long as it is required.You can do this until the debts are cleared.
People generally have a thought that too many accounts that is credit lines are causing the low score and by closing them you can improve it.This is not true.Some times it may even hurt your fico score and you shall be careful about it.
Closing the existing account reduce your available credit and hence used credit will increase.This is a negative factor on the financial score.Another issue is reduction of average age of total accounts.This happens when you close older accounts and you shall not do that.Any way you shall keep the old accounts active and you can do this by paying at least small bills like a news paper or a magazine subscription.See that the bill is paid on time through online or automatic bank account.Then the bill will not be bounced and credit payment history will be improved.
Applying for the credit shall be done sparingly only when it is needed.Opening many lines of requests once lead to hard inquiries and affect your report. It does not mean that you shall not apply and try getting money when it is needed and shall be done only when it is needed.
(Picture source : http://www.flickr.com/photos/vinzcha/3518840077/)Starting to have the payment and history from long time will be good.Thus better to start early like when you are a student.Getting a approval for that is quite easy and you can build history from early age.You can also learn responsibility in running the money.For any reason if your application is rejected for a new card,better to apply for departmental card and it is easy to get it.Here you have to deposit some money into.
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