how i can improve my credit score?

Question

i am doing job full time, i applied for loan but they says my credit score is not good, can some one help me to improve my rating, i am in desperate need of loan

Answer 1

In order to build up credit and establish a good credit, you must show a number of stabilizing attributes. Most notably, your report must prove to the lender that he will get his money back. Here are some suggestions:

OPEN A BANK ACCOUNT
Open a bank account and use it responsibly. This is the first step in establishing a financial history.

CO-SIGN
One way is to piggy-back onto someone who already has a good credit history established and is willing to co-sign. Once the co-signing has occurred, you simply make payments on or before the due date. In time you will have established a credit history.

SECURED CREDIT CARD
Apply for a credit card. Shop around and only apply for a card if you can meet the lender's requirements. Responsible use (spending within your budget and paying your bill on time) will help you build a good credit history.

DEPARTMENT AND GASOLINE CREDIT CARDS
Since gasoline credit cards are not revolving (cannot carry a balance forward month-to-month), often they are easier to obtain than regular credit cards. Similarly, some department stores offer revolving credit for a specific purchase and this is sometimes easier to establish. It is also a great way to establish credit.

This website can be very useful for you:
http://www.howtoestablishgoodcredit.com/Credit_Articles/index.php?page=1&category=7

Answer 2

It can take up to a year or more to rebuild your credit, so being patient and making smart moves is the way to do it.

I raised my credit score to well over 750 points from 500 using these steps:

# Know and Track Your Credit Score
# Never Miss a Payment, Starting Today
# Never use more than 20% of your Available Credit
# Keep Credit Cards that Have No Annual Fees Open For as Long as Possible
# Extend Your Credit Limit on Cards You Already Have before You Get New Ones
# Get Credit Cards that Have CashBack Rewards to Contribute to your Balance
# Transfer Your Balance to a Credit Card with a Lower Interest Rate and a Higher Available Credit-
# If You Think You Are Going to be FORCED to Pay a Bill Late Ask for an Extension or Payment Plan
# Take out a Small Personal Loan and Repay it Over a Year
# Ask Someone With Good Credit if They will Account Shadow you

Read the full article here, it gives you an overview of credit scores, and the 10 steps in detail on page 2:
http://millionster.com/articles/debt/increase-fico-credit-score/

Answer 3

It depends on why your score is low.

If you have a low score because you just haven't had a credit history you could try a secured loan or maybe a co-signer. These tend to be less risky for the bank so they are more eager to approve them.

If the score is low because of past debt that has not been paid or too much debt already, you have a bigger problem. In this case you will need to pay any past accounts, or pay off the current accounts. However you stated that you need the loan so I am guessing this is not an option at this time.

You could also have too much open credit. This means that if you have a credit card with a zero balance but it has a large credit limit, the bank sees that as open credit. They take that into consideration that you could be in debt up to your credit limit. You can call your credit card companies and have them close accounts or lower the limit. Most of these things will take quite a while to actually reflect on your credit report therefore your credit score will not change until that happens.

Answer 4

You need to prove yourself on small lines of credit before you will be approved for larger loans.

Banks prefer to give loans to people that don't need them. If you need one, it's tough to get one. For everyone that wants strong credit, start by opening a small credit card, car loan, or computer loan. after 12 months of no missed or late payments, you can get another credit card or larger loans.

Answer 5

First, you need to get an all in one credit report to see where your credit issues are. Then you need to make an action plan to attack the problem. If you'd like to learn how to repair your credit then visit http://www.thecreditrepairmanual.com

I did it! and you can to!