The current economic downturn has left many Americans struggling to rebuild their credit scores after declaring bankruptcy or experiencing other financial setbacks. The following tips will help form the core of a solid strategy to improve a weak credit score.
First, acquire a credit card if you do not already have one. While carrying a balance often works to your disadvantage, using one or two credit cards responsibly helps build a good history. Even a secured credit card can help.
Second, consider adding an installment loan to your bill-paying responsibilities. Installment loans, such as personal or auto loans, form the second category of credit. Demonstrating financial diligence with both credit cards and loans should yield quick results. Make sure all three credit bureaus receive information about the loan.
Finally, pay down outstanding credit card debt. Keep balances below 30% of the limit. Maintaining a balance below 10% helps even more.
About Anthony Pierpont:
As owner of Royal Commercial Capital in Burnsville, Minnesota, Anthony Pierpont provides funding for multi-million projects throughout the Unites States.