9 Tips to Improve and Rebuild Credit Scores
by Lisa Phillips
February 15, 2010
by Lisa Phillips
February 15, 2010
Thousands of dollars can be saved by having good to excellent credit scores. A good credit
score is 700 and above. A credit score of 750 will get you great rates and often a guaranteed
approval. The absolute best rates are reserved for 780 plus credit scores.
score is 700 and above. A credit score of 750 will get you great rates and often a guaranteed
approval. The absolute best rates are reserved for 780 plus credit scores.
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1. Add a positive unsecured credit card
An integral part of improving credit scores involves showing credit-worthiness. Get a credit card
that will help you rebuild credit. The Orchard Bank® Classic MasterCards is an excellent credit
card choice for people looking to build their credit. Get prequalified online in just 30 seconds!*
An integral part of improving credit scores involves showing credit-worthiness. Get a credit card
that will help you rebuild credit. The Orchard Bank® Classic MasterCards is an excellent credit
card choice for people looking to build their credit. Get prequalified online in just 30 seconds!*
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Related Topics:
- Get 5 Easy Fixes to common credit report problems
- How to Raise Your Credit Score Fast!
- Improve your credit with a Goodwill Letter
- 7 Strategies to fix your Credit Report
- Lean about piggyback credit also known as authorized user credit
- Secured credit can help raise your credit scores
- A little known way to supplement your credit files with positive information
2, Add a positive secured credit card
A Public Savings Bank Classic Secured Visa® Credit Card helps build your credit history at all
the major credit bureaus – with no annual fee or monthly maintenance fees.
3. Authorized buyer credit
Family members with great credit can help you boost your credit scores with authorized buyer
credit. A credit card company can allow an account holder to add you as an authorized user on
an established account. The account holder’s information, including payment history, account
balance and credit limit becomes part of your credit history. Authorized user accounts can
instantly improve your credit scores and offer those rebuilding credit scores an established
account to add to their credit history. See Authorized Buyer Credit.
4. Are your credit limits being reported
Make sure your credit card companies report your limit and balance. Some may only report your
balance and not your credit limit. Lenders who engage in this practice may actually be causing
your credit scores to be lower. The scoring system will plug in your highest balance as your credit
limit and if you are currently at a high balance this can be detrimental to your scores. Capital One
used to be notorious for this practice until they changed their policy in August 2007.
5. Create New and Good Credit Habits
The Orchard Bank® Visa® Credit Card can help you get your credit back on track. They report
monthly to all three major credit bureaus giving you the opportunity to rebuild your credit with
good payment behavior! Get pre-qualified in less than 1 minute!*
6. Decrease credit card balances
Amount of debt owed is 30% of your credit score which is significant when you are attempting to
improve and rebuild your credit scores. Keep your credit balances within 30% or less of your total
credit limit. Let’s say you have a credit card with a $5,000 limit and your balance is close to that
$5,000 limit. Your credit scores are going to suffer because you have a high balance to limit
ratio. Decreasing your balance to 30% or less of your credit limit will increase your credit scores
immediately. The great thing about this technique is that it works whether it is a $5000 limit credit
card or a $500 limit credit card. Decreasing your account balances to 30% or less of your credit
limit on accounts will instantly improve your credit scores.
7. Retain old credit
Older credit is vital to credit scores, even if the account is inactive. A credit score contains five
major elements: payment history (35%); amount of debt owed (30%); length of credit history
(15%); mix of credit (10%) and new credit (10%). Maintaining older credit is vital to improving
credit scores as credit history constitutes 15% of your overall credit score. Do not close older
accounts, they show stability.
8. Limit the number of hard inquiries
Hard credit inquiries can take between 5-10 points off your credit score. Although getting new
credit can help improve and rebuild your credit scores, applying for new credit will lower your
credit score. Limit the number of inquiries you have in a 12 month period. Spreading your hard
inquiries among the three major credit bureaus can keep your credit reports from taking a hit.
Before applying for new credit call the lender or credit card company and ask which credit bureau
they use. Most do not mind revealing that information. Rebuilding your credit involves adding
positive credit to your files; however, once you are approved for a few new credit accounts stop
seeking new credit. Make sure all hard inquiries are authorized. Any company that pulls your
credit report without your authorization or permission is in violation of the FRCA. Each violation is
worth $1,000 if you file a lawsuit. See Erasing Inquiries
9. Pay your obligations by the due date
A late or missed payment can drop a good credit score by as much as 80 points or more. It may
not make sense but if you already have negative entries on your credit report adding more will
not hurt you as much as if you don’t have any negative entries. Regardless, paying on time can
raise your credit score as payment history constitutes 35% of your credit score.
10. Request a Deletion for settled negative debts
If you pay a collection or settle a debt make sure you obtain a deletion and not a “paid collection”
entry. This also applies to paying a debt directly to the creditor. Paid collection entries or settled
accounts do not raise your score. See Get Deletions.
"additional information"
It is our goal to offer you the credit card that best fits your credit profile, which may or may not be the card you
originally inquired about. You may be offered a secured card or an unsecured card, and with different terms and
conditions which will be disclosed before your application is processed.
A Public Savings Bank Classic Secured Visa® Credit Card helps build your credit history at all
the major credit bureaus – with no annual fee or monthly maintenance fees.
3. Authorized buyer credit
Family members with great credit can help you boost your credit scores with authorized buyer
credit. A credit card company can allow an account holder to add you as an authorized user on
an established account. The account holder’s information, including payment history, account
balance and credit limit becomes part of your credit history. Authorized user accounts can
instantly improve your credit scores and offer those rebuilding credit scores an established
account to add to their credit history. See Authorized Buyer Credit.
4. Are your credit limits being reported
Make sure your credit card companies report your limit and balance. Some may only report your
balance and not your credit limit. Lenders who engage in this practice may actually be causing
your credit scores to be lower. The scoring system will plug in your highest balance as your credit
limit and if you are currently at a high balance this can be detrimental to your scores. Capital One
used to be notorious for this practice until they changed their policy in August 2007.
5. Create New and Good Credit Habits
The Orchard Bank® Visa® Credit Card can help you get your credit back on track. They report
monthly to all three major credit bureaus giving you the opportunity to rebuild your credit with
good payment behavior! Get pre-qualified in less than 1 minute!*
6. Decrease credit card balances
Amount of debt owed is 30% of your credit score which is significant when you are attempting to
improve and rebuild your credit scores. Keep your credit balances within 30% or less of your total
credit limit. Let’s say you have a credit card with a $5,000 limit and your balance is close to that
$5,000 limit. Your credit scores are going to suffer because you have a high balance to limit
ratio. Decreasing your balance to 30% or less of your credit limit will increase your credit scores
immediately. The great thing about this technique is that it works whether it is a $5000 limit credit
card or a $500 limit credit card. Decreasing your account balances to 30% or less of your credit
limit on accounts will instantly improve your credit scores.
7. Retain old credit
Older credit is vital to credit scores, even if the account is inactive. A credit score contains five
major elements: payment history (35%); amount of debt owed (30%); length of credit history
(15%); mix of credit (10%) and new credit (10%). Maintaining older credit is vital to improving
credit scores as credit history constitutes 15% of your overall credit score. Do not close older
accounts, they show stability.
8. Limit the number of hard inquiries
Hard credit inquiries can take between 5-10 points off your credit score. Although getting new
credit can help improve and rebuild your credit scores, applying for new credit will lower your
credit score. Limit the number of inquiries you have in a 12 month period. Spreading your hard
inquiries among the three major credit bureaus can keep your credit reports from taking a hit.
Before applying for new credit call the lender or credit card company and ask which credit bureau
they use. Most do not mind revealing that information. Rebuilding your credit involves adding
positive credit to your files; however, once you are approved for a few new credit accounts stop
seeking new credit. Make sure all hard inquiries are authorized. Any company that pulls your
credit report without your authorization or permission is in violation of the FRCA. Each violation is
worth $1,000 if you file a lawsuit. See Erasing Inquiries
9. Pay your obligations by the due date
A late or missed payment can drop a good credit score by as much as 80 points or more. It may
not make sense but if you already have negative entries on your credit report adding more will
not hurt you as much as if you don’t have any negative entries. Regardless, paying on time can
raise your credit score as payment history constitutes 35% of your credit score.
10. Request a Deletion for settled negative debts
If you pay a collection or settle a debt make sure you obtain a deletion and not a “paid collection”
entry. This also applies to paying a debt directly to the creditor. Paid collection entries or settled
accounts do not raise your score. See Get Deletions.
"additional information"
It is our goal to offer you the credit card that best fits your credit profile, which may or may not be the card you
originally inquired about. You may be offered a secured card or an unsecured card, and with different terms and
conditions which will be disclosed before your application is processed.
The current "credit crunch" has resulted in
lending institutions reducing the availability
of credit, especially for those with problem
credit. Now is the time to deal with any
problem credit and rebuild your credit
scores. The following are tips to improve
and raise your credit scores.
lending institutions reducing the availability
of credit, especially for those with problem
credit. Now is the time to deal with any
problem credit and rebuild your credit
scores. The following are tips to improve
and raise your credit scores.
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