Ways to Raise Credit Score

[adamjlaw]

Is there a list or can we make one of ways to improve your credit score. For example, credit card (also how many cards), personal loans, car loans, etc. What works best and what doesn't.

Thanks

[tradewiz50]

Is there a list or can we make one of ways to improve your credit score. For example, credit card (also how many cards), personal loans, car loans, etc. What works best and what doesn't.

Thanks

Read the sticky's in the Rebuilding Credit section.

[HHM]

First and foremost, the PASSAGE OF TIME.
Second, make sure all entries on your credit reports are accurate and properly noted.

I love it when people come out of BK and the first thing they do is get themselves back into debt in order to improve their "credit" score.

You need to reorganize your priorities. Instead of worrying about your credit, start taking steps toward sound financial planning and management; if you can do that, your credit report takes care of itself over time. You don't go BUY a car on credit for the sake of your credit score, you buy a car for transportation. The purchase of a car is its own whole decision making process, regarding affordability, needs, available resources, etc. Especially don't take out personal loans. There is no reason too.

Regarding credit cards, yes, you probably want to get no more than TWO credit cards. If you are just out of BK, try to find the ones with the lowest fee structure. Charge no more than you can afford (maybe $50-$100), and pay that balance off over 2 months. Then recharge again for another $50-100, and pay that balance off over 2 months. After 6-8 months, you will probably start getting offers from more mainstream credit cards. If not, start looking around for no-fee cards. Once you get a no-fee card, cancel your for-fee cards.

[adamjlaw]

personal loans

I heard somewhere that if you take a personal loan out for say 1000 you could pay a regualar payment for two months and then pay back the entire loan the third month. It will have been reported to the credit reporting agencies by then and your report will have the loan paid in full on it. The purpose of the loan is not to spend the money. If you don't spend it and simply put it into the bank and then pay them back quickly the whole thing will only cost you about 40 dollars in interest. You just have to make sure there aren't any prepayment penalties or that you have to pay back the entire amount of interest just what you use.

[HHM]

I heard somewhere

That is how it starts....

In the large scheme things, it won't matter that much!