The credit rating or the FICO score is one of the most important numbers that an individual will be measured by in their lifetime. A credit score can determine the likelihood of the consumer obtaining a credit card, a loan, even renting a home! Forget about getting a mortgage if your credit score is not up to par – it just won’t happen!
Here are some of the quickest ways to increase your credit rating.
First, obtain a copy of the credit report. The credit report will give insight into the credit situation and allow the consumer to determine the mistakes which must be repaired in order to increase the credit score. Be sure to look over the score and the history that has contributed to the credit score.
Begin by assessing the credit report and remove any accounts that are facing collections from the credit report. This can be done by negotiating repayment with the collection agency in return for the removal of the strike from the credit report. If the debt is simply repaid, it will remain on the credit report for up to seven years. It is important to get this fact in writing to ensure that the strike is indeed removed from the credit report.
If you currently are not using credit, begin using a secured credit card. A secured credit card can allow the consumer to find a way to develop credit card history and begin a positive credit file. Although secured credit cards often require a deposit, it is important to remember that this deposit will be returned upon the closing of the credit card account.
Tags: credit cards, credit rating