Friday, April 27, 2007

Using Credit Cards To Rebuild Credit - Tips for Credit Repair

It is estimated that approximately 33 billions Americans battle with some word form of bad credit. This is about 10% of the full United States population.

One's credit history is becoming increasing important. For people struggling with bad credit, sometimes, it experiences like the number is tattooed on your forehead, especially, if you've made an attempt to secure a home loan, auto loan or personal loan.

The fact is that creditors are not eager to widen a line of credit to you, if your FICO score is not above the 650 range. There are a number of grounds why your FICO score may be low - bankruptcy, too much debt, not paying your measures on time, etc.

The good intelligence is that your credit score can be improved. The cardinal to increasing your credit score is to keep a line of credit and turn out to your creditors that you are capable of paying your debts on clip and not maxing out your credit line. These four simple stairway will assist you better your credit score:

1. Get a transcript of your credit report. Take advantage of the free authorities credit report from each of the National Consumer Credit Bureaus: Equifax, TransUnion and Equifax. This volition aid you to understand your starting point. It will reply the inquiry - "how bad is my credit?"

2. Apply for a line of credit. You can apply for an unsecured credit card or a secured credit card.

3. Once you have got the card, make not max out your credit card. Try not to transcend 70% of the credit card's limit. For example, if the credit card bounds is $1000, you should only charge up to $700.

4. Always, wage your measures on time. This accounts for 35% of your FICO score. It's the most of import factor in proving your credit-worthiness to your creditors.

Practicing these four simply rules will assist you to increase your credit score in the approaching months.

2 comments:

senseibasil said...

It's a very useful tip you posted here Tom.

Either way be sure that your credit card is an secured credit card for it will not just help you rebuild your credit line but also help you build a good credit history.

ComparePrepaid said...

This blog is having the very nice information about bank cards. Here we can have other information like Credit Cards to Rebuild Credit.