One of the sneaky-quick ways to increase your score is to add yourself as an authorized user on someone else’s. According to FICO, 35% of your score is based on your history of on-time payments, so when you become an authorized user on a friend or family member’s credit card, car loan, or installment loan, etc. you automatically “assume” the same positive history of payments on your credit report. Viola! Your score will go up as well. You do need to make sure the lender registers your social security number and will start reporting the change, and it can take 30 days to reflect on your own credit report (unless you do a Rapid Rescore—see below). But becoming an authorized user is a fantastic way to benefit from a great payment history that’s not even yours.

In a competitive market, credit card companies are always trying to lure customers with their frequent flyer miles and cash back offers. Even if you have found a new-and-improved credit line, keep your oldest account active and in good standing. While new credit is important, credit history has a larger impact on your score. Use your old card for occasional purchases to keep things balanced. It could help boost your score with little effort.


Credit reports record your payment habits on all type of bills and credit extended, not just credit cards. And sometimes these items show up on one bureau's report, but not another's. Old, unpaid gym dues that only appear on one report could be affecting your score without you even realizing it. If you rent a house or apartment, some credit agencies count the history of those payments in their credit score calculations (assuming the landlord reports it to them). For example, credit rating giant Experian began including positive rental payment histories in its credit score ratings in 2010. TransUnion also figures positive rental payments into its credit calculations (look for it under “tradeline expense” on your credit report.)
In general, you should try to keep credit card balances low. When you consolidate the cards you’re consolidating will have much lower credit utilization ratios, but your overall ratio will remain the same. However, the lower interest rate you’re paying during the introductory period means you can pay more toward your balance each month, helping lower your overall credit utilization more quickly.

Credit utilization is the second most important factor when calculating an individual’s credit score. Simply, credit utilization is how much credit you have used in comparison to how much lenders have provided you. For example, if you have three credit cards with a limit of $3,000 on each card, your total credit would be $9,000. Now, say after a weekend of house decorating, you spent $4,500 on your credit cards – your credit utilization would be 50%. Credit utilization is another facet in which credit holders have complete control over. By landing your utilization in the 25%-45% bracket, your credit score will be optimized.


Still, even if the math of a debt consolidation loan works out in your favor, your behavior may be the real problem. Paying off all of your credit cards and debts with a loan only shuffles the deck chairs around—you still owe money you have to pay, and if you go charging up those freshly paid-off credit cards again, those deck chairs may as well be on the Titanic.
Following these 6 steps people with bad credit are sure to succeed. I would like to add while paying down your credit card debts one option that may help you get ahead is to take advantage of credit card transfers. Normally banks will let you transfer your balance (they’re more than happy to take it) for a small fee. One word of caution however, is that this doesn’t really fix the underlying issue, which as Sarah mentioned budgeting and keeping on top of your payments will.
In addition to a cashback program, this card provides valuable credit resources such as free access to your FICO® Score and a Credit Resource Center — just note these services are available whether you’re a cardholder or not. Discover also takes the guesswork out of wondering when you’re ready for an unsecured card (aka a regular credit card) by performing automatic monthly account reviews, starting at eight months of card membership.
Hello. I just wanted to pass along some praise. We recently acquired a loan from LightStream for the purpose of consolidating our high-interest credit card debt. We are absolutely thrilled with how quick and easy the entire process was. The communication was wonderful, as well. We got a fantastic rate and we couldn't be happier! Thank you so very much!
The goal is to focus your financial attention on quickly paying down one debt as quickly as possible. Now, if your debt is accumulated in credit cards, as you make monthly payments, do not use those cards. The credit bureau will see your financial habits, and this will reflect in your credit report and ultimately your credit score. Now, calculating your credit utilization is not hard and is something that everyone can do. Take the time to figure out where you stand and what loans or credit lines you can begin minimizing to reach that sweet spot. This is one of the best ways for fast credit repair.
Another avenue to pursue to improve your credit score as quickly as possible is to negotiate with your creditor and credit bureaus to see if they are will to make adjustments. This can be especially effective if you have established a current strong payment record. In that case, a creditor can often be persuaded to remove previously reported late payments as a “goodwill” gesture based on your current payment history, and to encourage you to maintain the course.

A third of your overall credit score is based on the credit utilization ratio across all of your cards. Because of the way credit scoring works, it's better to carry a $1,000 balance on a card with a $5,000 limit (20% credit utilization) than to carry a $500 balance on a card with a $1,000 limit (50% credit utilization). That's why, in discussing payment pecking order, we recommended paying off the cards closest to being maxed out. That's also why you shouldn't terminate accounts. It'll increase the percentage of total available credit that you’re using – and that will reduce your score.
Note: Below we’ve listed our favorite offers from credit unions and lesser known banks that provide balance transfer offers up to 12 months. If you need a longer intro period, you might be better off paying a standard 3% balance transfer fee for a card like the Discover it® Balance Transfer which offers an intro 0% for 18 months on balance transfers (after, 13.99% - 24.99% Variable APR).
You have no real property and want to discharge your debts. While Chapter 13 bankruptcy requires you to reorganize your debts and pay them off, Chapter 7 bankruptcy allows you to discharge debts completely. For that reason, bankruptcy attorney Barry J. Roy of Rabinowitz, Lubetkin & Tully LLC in Livingston, N.J., said Chapter 7 makes sense when you don’t have many assets but desire to discharge your unsecured debts.
If you have a high balance on a credit card and are only making minimum payments, start paying down the balance. It's important to pay down (or even better, pay off) revolving accounts such as credit cards. This will lower your credit-to-debt ratio (what you have borrowed in relation to what you could borrow), and is one way to improve your credit score. Paying off installment loans such as auto loans, student loans, etc. won't improve your credit score as dramatically.
All U.S. consumers are entitled to see their credit reports. Typically, copies are requested from the “big three” credit reporting agencies (Equifax, TransUnion and Experian). After obtaining a copy, it’s best to review the report. If you need to raise your credit score in 30 days, note any and all errors in the report. If errors are discovered, work to get them corrected as quickly as possible. A creditor may have erroneously reported late payments, or there may be outdated information on the report, like a defaulted loan that has since been paid in full.*

In a competitive market, credit card companies are always trying to lure customers with their frequent flyer miles and cash back offers. Even if you have found a new-and-improved credit line, keep your oldest account active and in good standing. While new credit is important, credit history has a larger impact on your score. Use your old card for occasional purchases to keep things balanced. It could help boost your score with little effort.


If you choose to settle with a lender for less than the total owed, the arrangement will show on your credit report and may drop your score depending on how it is reported. Some lenders will simply mark it as paid, which has a positive affect on your score. However, if they show it as settled, your score may suffer. Although you can negotiate with a lender as to how they will report the settlement, you ultimately have no control over what they will do.
Here’s some background to help demystify the process. Your credit score utilizes historical data from your credit report to predict your future risk of default. The information on your credit report is usually an accurate reflection of your financial life. And finally, your financial life is a subset of the rest of your life. So if you’re having hard times, more than likely it will show up in your financial life, credit report and then credit score.
According to Kim Cole, community engagement manager at credit counseling agency Navicore Solutions, bankruptcy can make sense when life circumstances cause people’s finances to spiral out of control. Very often, she said, her company works with consumers who have racked up insurmountable amounts of medical debt that they couldn’t pay off if they tried. Other times, bankruptcy is the result of job loss or another unintended loss of income.
You should take the time to shop around. FICO says there is little to no impact on your credit score for rate shopping as many providers as you’d like in a single shopping period (which can be between 14-30 days, depending upon the version of FICO). So set aside a day and apply to as many as you feel comfortable with to get a sense of who is ready to give you the best terms.

Focus on paying off your smallest debts first, suggests Kalen Omo, a financial coach in Tucson, Arizona, and owner of Kalen Omo Financial Coaching. This repayment strategy is known as the "debt snowball" method. "You list your debts from smallest to largest, paying minimums on everything except the smallest, and attacking that small debt with a vengeance. The goal is to get small wins along the way to motivate and give you hope to tackle the next one and the next one and so on. Once the smallest one is paid off, you take that payment to the next smallest debt, and the process acts like a snowball on the top of a hill. It picks up more snow as it goes downhill," Omo says.


One of the most underestimated factors of calculating your credit score is one’s credit mix. People tend to not even think about the importance of diversifying their credit portfolio. There is a reason why wealthy individuals always talk about diversifying your credit portfolio – it directly impacts your credit score. If you only have a few lines of credit open, and they all happen to be credit cards, this will not look as good as if you had three different lines of credit, like a credit card, mortgage, and car loan. While it may only accumulate 10%, this is still a significant portion to consider.

The Citi® Secured Mastercard® requires a $200 security deposit, which is typical of secured cards and a good amount to establish your credit line. You can deposit more money if you want to receive a higher credit line, but if you don’t have a lot of money available to deposit, coming up with $200 is manageable. This card doesn’t have any additional card benefits like rewards or insurances, but you can access Citi’s Credit Knowledge Center for financial management tips.
Those with poor credit or no credit can obtain a low credit limit secured credit card (by putting up a security deposit). This is reported to the credit bureaus as a regular credit card and allows you to build a positive payment history quickly. Eventually, the credit card company (and others) will offer you a higher traditional credit limit without the security.
It’s always possible there are some errors on your credit report causing your credit score to be much lower than it should be. At the beginning of any endeavor to improve your credit, get acquainted with your free 3-bureau credit report (from annualcreditreport.com) so you know what belongs on them. Check carefully for any errors to your name, identifying information, account names, account numbers, credit limits, balances, and payment dates, and if you find any errors dispute them and have your report corrected. If there were errors regarding payments or credit limits and they are resolved, your credit score may improve dramatically and quickly, depending on the error.

While credit building loans can be a key step in establishing a strong credit history, it’s imperative that you make all of your payments in full and on time. When you are committed to building a strong financial future with personal budgeting and spending discipline, successfully paying off a credit builder loan can lead to approval for good rates and terms on mortgages, auto loans and other loans in the future.
The best way to handle these types of information lines on your credit report is to dispute them but you have to remember that if that isn't done correctly, it is like kicking a hornets nest. Just calling them and saying, "hey, I dispute this." is NOT good enough, regardless of what ANYONE says. It has to be done with a certified, return receipt letter that has been properly worded to prevent the sleezy little buggers from using a loophole. You can find a lot of information out there about how to do this on sites from people like Dave Ramsey or with self help books like Weathering Debt (either one works, but I prefer Weathering Debt, it was much more concise and to the point) but whatever you do, DON'T try to wing it and don't pay someone to do something you can do yourself with ease and for free. Besides, you need to know how to stop the problem from happening again, right?

The accounts section contains a detailed history of all accounts (open and closed), your balance, and your payment history associated with each account. You should be able to see month-by-month payment information for 7 years of history. Each month will have a symbol next to it that indicates whether the account was paid as expected or if it was late.

×