Today's economic times are tough and that makes it much more difficult to get credit or a loan, even if you have good credit. If you have credit that may be referred to as being less than stellar, you are having an even tougher time getting loans approved.
If you are an informed consumer, you realize that the only way around this is to rebuild your credit and raise your score. Let me repeat that since there are always people looking for the quick fix, this is the ONLY way, and there is no quick fix to be had. Be especially wary and skeptical of credit repair businesses - the Federal Trade Commission recently shut down a bunch of them after proving they were scams, and even the ones that are legitimate are preying on the desperate and the uninformed, since there is absolutely nothing they can do which you cannot do for yourself, for free.
The reason this is a fact is because you must realize how your credit score is calculated by the three major bureaus. In fact, since not all lenders report to all three bureaus, you probably have a different credit score at each of them, but the key to survival in these tight economic times is having an accurate and great score at all three of them.
Your score is a reflection of many factors, but almost all of them are historical, and this is the exact reason why there is not a quick fix and also why credit repair businesses cannot deliver on their ridiculous promises. History is something that has happened, and once it has happened, it cannot be changed. Rather, it is a matter of historical fact that cannot be disputed. If you missed your car payment 6 months in a row, that is a matter of historical fact, and you cannot go back in time 6 months to make it right. It happened and it affects your credit score because it is a part of your history.
How do you change history? You cannot, no way. But what you CAN do, starting today, is to change the future course of what your credit history will show. Your score also reflects trends, so if last you were late 6 consecutive months with your car payment but you have made each and every payment on time over the past year, that shows a trend and your credit score is going to be higher as a result.
The best way to do start getting a good credit history, which will result in a higher score is by getting a secured credit card, where your cash deposit becomes the credit limit for your account. These are typically very easy to get from various places, and since there is virtually zero risk to the card issuer since your limit is determined by how much you have deposited with them, this can create a superb credit reference. The additional bright spot here is that once you have demonstrated that you are responsible with credit and make your payments every month on time, chances are great that they will increase your limit without requiring any additional deposit.
Make each and every payment on time for every account you have. Just make it happen, and borrow the money from a friend if you need to. Making payments on time with at least the minimum amount is the number one way to guarantee increasing your credit score.
Also watch your credit card balance compared to your limit. You don't get extra points if all your credit cards are maxed out, but the optimal balance to keep on your active cards is about 25-30% of your credit limit, which shows that you know how to use credit wisely and conservatively.
These steps take time, but if you follow these things and others that are discussed at our web site, you can easily rebuild your credit over time as this new and very positive history is established. The time you spend doing this today will pay you huge dividends in the future.
For more insights and additional information on how to Rebuild Credit as well as other credit tips to increase your credit score and obtaining free copies of your credit reports from the major credit reporting agencies, please visit our web site at http://www.credit-help-center.com
Article Source: http://EzineArticles.com/?expert=Jon_Arnold
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