You Can Improve Your Credit Score

Online, November 28, 2011 (Newswire.com) - So you've been out of a job for a while, you're robbing Peter to pay Paul, and your credit has taken a dive? Don't lose heart - there are things you can do to improve your credit score.

First of all, get a new credit card. You can get a secured card if your credit is bad, but you'll want to only charge what you can pay off each month, in full. This will help to rebuild your score.

Some credit unions offer what is known as a credit builder loan. You borrow this and put it into a savings account to be used as loan collateral. You will make monthly payments on the loan and, when it is paid in full, the loan is yours to keep.

Another step you can take is to pay down a balance close to the limit. Your credit utilization, or how much of your available credit is being used, is 30 percent of your credit score. The closer your balance is to your limit the worse for your credit score. You could also pay all of your credit card balances to 10 percent of the limit.

If you have negative accounts that have already been paid, ask the creditor to remove the account as an act of goodwill. You could also ask a creditor to delete an account from your credit report in exchange for payment in full. This is called a "pay for delete." You should make either request in writing.

Most negative information can only be reported on a credit report for seven years. But even so, items older than this may not disappear automatically. You can file a credit report dispute to have these old items removed from your credit report.

You should begin now, if you haven't already, paying at least the minimum on all of your accounts, including those that aren't even listed on your credit report. Any past due can be sent to a collection agency, which will surely report to the credit bureaus.

Debt collectors have to verify your debts if you request it within 30 days of the first phone call or letter. After the collection agency receives the request, they cannot add the debt to your credit report until you receive proof that the collection agency can collect on the debt. But this may only be a temporary fix.

Check your credit score and you will receive a list of factors that negatively affect it - then get to work. But remember: just like it took time to get your credit into a mess, it will take time to fix it. Don't expect overnight results.