How can I improve my credit score?

Question

Hi, I havent take a look at my credit score but i know is bad, i just divorce and i got fired from my last job (unfairly) but thanks God i have a good job now.
My point is that i really dont have too much debt in comparison to the average person but I have been very late on my payments until 5 months due! SO i need some advise in what to do :
I have a credit card that the balance is like 250 and i have to pay monthly $15 so? how should i pay it in order to increase my credit score? should i pay $30 monthly instead of the $15? or should i try just to pay it off in 2 months? I dont have any idea how this credit score thing works!
Please give me an advice only if you are sure about it...

Thank you very much ;-)

Answer 1

i've heard that if you pay twice your minimal payment in a month, it looks like you are making an extra payment. I always pay atleast twice the minimium.

Answer 2

By implementing these tips you could save hundred of dollars in interest in the long run and put cash back in your pocket in the short term.

1) Avoid using cash and borrowing from family for all your purchases. In the eyes of creditors no credit history is the same as a bad credit history. You may get away with paying cash for your car but when you buy your first home it will come back to haunt you. Even if you can afford to borrow or pay cash try opening an account to buy your furniture, automobiles, or home improvements. A diverse credit background will help with your credit score.

2) Your credit report tells all. Do not lie or stretch the truth to lenders, banks, or employers. They will easily catch you and the consequences are not worth it.

3) Do not cancel credit card accounts to improve your credit. The intended affect may be the opposite of what you expect. You can hurt your credit by canceling your credit cards; especially if you have a long history with the account. Losing a ten or twenty year credit history isn't worth it. If you absolutely must stop using a card, try shredding it. An open account that doesn't have a balance looks far better then no credit account at all.

4) Starting early is always better when establishing credit history. Getting a teenager or college student a credit card is a great way to get their history started. For those who don't trust their child's judgment yet there are many prepaid cards that report to credit bureaus. Read more from: http://www.credit-card-gallery.com/article/136,Seven_Must_Know_Credit_Tips

Answer 3

1) You need to get any erroneous creditor numbers off of your current credit report with all 3 major credit report companies. You do this by contacting each of the credit companies on each report and ask for written documentation that the debt is satisfied.

2) You make regular payments to your current credit cards beyond the minimum; for example, if the bill says $15 minimum send in at least $25. Also, of course, pay your mortgage and car payments right on time each month.

3) Good credit takes a while to rebuild - usually up to two years - but if you demonstrate that you are making all of your current payments in a timely manner your credit score will improve.

Answer 4

Ok, first of all your credit score does not compare your debt to the average person's debt, it compares the amount of debt you have to your total available credit. If you have $500 in debt and your total credit limits for all of your accounts is $1000, you're using 50% of your credit which takes off approximately 50 points from your credit score.

The best thing to do is to pay off the card in full.
Avoid any further late payments.
Settle any outstanding accounts.

And let time do the rest, your past late payments will have less of an impact on your score over time.

The longer you have accounts in good standing open, the more it will boost your score.

Answer 5

There are two very simple things you can do to address this situation right away.

First, pay off your credit card and any other outstanding debts as soon as possible. If you can't afford to pay them in full right away, pay as much as you can each month until they are paid off. By actively decreasing your debt you will be showing potential creditors that you are practicing healthy credit usage habits. This is the single best thing you can do to improve your credit score.

Second, sign up for a credit report and monitoring service. All of the major credit reporting bureaus (Experian, Equifax, TransUnion) offer these services online. They will allow you to view your credit report online and notify you when it changes. This will help you pro-actively manage your credit improvement process.

You can view a list and reviews of these services here:

http://www.consumercompare.org/creditreports/compare.php

Answer 6

ok, get a copy of all three credit reports. First pay off all debt, then pay bills on time, and last never be late on paying your bills... If u need to try to get on a payment plan

Answer 7

Pay off all your debts as soon as possible, to improve your credit score. From http://acreditlibrary.com/improvecredit.html