Credit Repair

What is the best way to repair a low credit score?

Public Comments

1. Pay your bills on time.
2. you can actually get a better credit score by paying your utility bills and rent on time
3. it's easy to get a low credit scrore, but hard to rectify it. you are supposed to maintain a good credit records even at the beginning.
4. 1. Pay your bills on time--ALL of them. 2. Apply for more credit cards but DO NOT USE THEM. Having available credit without utilizing it increases your score. 3. Get a copy of your credit report (pay for it if necessary) and take a look at what's on there. There may be errors or accounts you didn't know where still open. Some people on here don't know what the hell they're talking about. Having available credit does NOT lower your score. It raises it. Have you ever seen your credit report or any credit report? Every credit report has items that add to your score and some that take away from your score. Active credit cards with no balance add to your score. Credit cards with recurring balances lower your score. Missing payments on mortages, credit cards, or other reported accounts lowers your score. It is true that credit inquiries (which happen every time you apply for credit or a loan) do lower your score, so the worst thing that can happen is a rejection. Not only do you not get points for the loan or credit, you're losing points because of the inquiry. Sitting on your hands and waiting around will NOT raise your score at all. You must be proactive.
5. Unfortunately, time is the best way. Make sure you maintain a good credit record and pay your bills. Every time you look for credit such as applying for a credit card or a loan you hurt your score because you have the "potential" of more debt. Its the same thing with having lots of cards with no balance. The potential is there and it can lower your score. Last but not least stay away from ANY service that says it can repair your bad score. Its all bogus. Only time and a steady good credit record will work.
6. Ironically, the best way to improve your credit score is to get an unsecured credit card, use it, and pay off the entire balance every month. The longer you own that card and pay it fully on-time, your credit score will improve. Rent isn't going to help much since not all landlords report to credit bureaus. That's too expensive for them. And utility payments aren't always counted towards your credit score. Also, don't apply for too many credit cards. Credit inquiries from banks and other financial institutions will lower your credit score. It doesn't matter if you are approved or denied. The inquiry alone alerts banks that you have been applying for credit. Keep in mind, though, that a low credit score is just one factor banks and other creditors use to determine your creditworthiness. They will also look at your debt-to-income ratio, your repayment history, the type of collateral you have, whether you have any liquid assets (cash, CDs, stocks, etc.)
7. Check out: www.creditnet.com www.artofcredit.com These boards will give you all the advice you need to your repair your credit.