Introduction
Having a bad credit score can affect you immensely. You might be denied for future credit such as on an application for a credit card. You might able be denied a mortgage or a mobile phone if there is a poor credit rating on your report credit score. These are all situations that will hinder you from getting ahead in life. You can stop or prevent these situations from occurring by improving your credit score. Here are some practical ways to do so.
Step 1
One of the first things you will need to do is order a copy of your report credit score. This can be done by contacting your local credit reporting agency. By contacting them you will be able to see how bad your credit score might be.
Step 2
After this, the next step is to apply for any credit that helps improve your report credit score. There are cards called secure credit cards that allow you to improve your credit score. A secure credit card will require you to make a deposit. As a result, you will give the credit card company money to be held as a deposit. Just make a small purchase using the card and pay this off. This will then be available as information on your report credit score and will be sent to the credit reporting agency. As you do this over time, you credit score will improve as the secure credit card company reports that you are making payments on time and paying off the balance in full.
Step 3
Another thing you can do to help improve your credit rating is to review you report credit score for any errors. If you do find any errors on your credit report, it is to your best advantage that you contact the creditor and challenge the error or wrong entry. You should ask if there is some way to have it removed or amended. The credit reporting agency might be able to place an annotation on your file that the entry listed is an error.
Step 4
There is also the option of getting a store charge card or a catalogue card. These types of cards are ideal for helping people like you who have a poor credit rating with rebuilding report credit score. What these cards involve is applying to a department store or a shopping catalogue for a card that will give store credit. These cards are not branded with Visa or Mastercard logos, but these cards are specific for the store you can purchase merchandise from.
Step 5
You can make tiny purchases and pay these purchases off in full. If you satisfactorily do this every month, you will discover that within time, your credit rating will increase. An increased report credit score will make a great difference in your life.
Tip 6
Therefore, as long as you pay off the balance each month or make the minimum payment, you will start to see a significant improvement in your credit score as reflected on your report credit score. Within time you can apply for other types of credit that do not have such interest rates.
Sources and Citations
http://articles.moneycentral.msn.com/Banking/YourCreditRating/build-credit-without-credit-cards.aspx
