If you just had a poor credit because of foreclosure and you got horrible collection notices on your doorstep, don’t worry. There are still some drastic measures you can do to give your credit score its much needed bump.
If you don’t have a credit card, get an unsecured card for bad credit. I know you may not like the high interest and annual fees plus the usual $300 credit limit. But, if you charge around $29 (lower than 10% utilization rate) every month and pay it right off, it’s not impossible to get over a hundred credit score points within 3 months.
The key here is to under-utilize the credit limits of your plastic. So, even if you are tempted to use it, don’t whip it out. The credit utilization ratio makes up 10% of your Equifax score. If you want to maximize this criterion, keep the credit utilization rate lower than 30%. But, if you want it to jump up faster, spend no more than 10% of your credit limit.
Request to be added to your spouse’s or parent’s credit card with a high credit limit. If the card holder is responsible in his or her credit, you can expect a decent jump in your score.
Don’t pay off old debts yet, especially those with derogatory marks in your credit report. It has zero to little effect on your credit score.
Get a secured credit card. Ask the credit provider if they will report it as secured or not, because secured cards serve as warning signs to lenders that you are a high risk borrower.
Negotiate with your creditors. If they can increase your credit limit, and you make a decision not to step up your spending the utilization rate of your card, the utilization will go down by a few percent. For example, you have a $750 balance on your MasterCard with a credit limit of up to $1500. If the creditor approves your request to increase the limit to $3000, your utilization ratio will go down from 75% to 25%.
Get a copy of your credit report. I can’t stress enough the importance of a credit report. Maybe you have a debt that you have totally paid off but are still being reported as an open account. There are times that borrowers found debts which do not belong to them.
Clean Credit can help you trace inaccuracies and false entries that may have been dragging your scores down. If you have been a victim of identity theft, credit card fraud and wrong reporting, Clean Credit can file a report and request for an investigation with the credit bureau, creditors and the government agencies involved. As a result, the inaccuracies shall be cleared or corrected and your credit score can go up.
Follow the extreme ways to raise your credit when you’re desperate to get a quick bump on your score today. Start by making an enquiry at Clean Credit.