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Step 1
Order your credit report. You can get a free copy of your report from all 3 credit bureaus from AnnualCreditReport.com. Once you have them, take a close look for any inaccuracies. You have the right to challenge those inaccuracies, and the credit reporting agencies have 30 days to prove that those entries belong to you or they must remove them.
Watch and make sure that inaccuracies are removed. Sometimes credit reporting agencies will immediately remove one and send you a notice of that, but not do anything about any others that you have requested that they examine. Stay on top of them and send another letter if 30 days have passed and they have not sent you notice of why they have decided to keep that entry on there. -
Step 2
Stay away from store credit cards. It is tempting, especially with the holidays coming up, to want that extra 10% off your purchases, but the high interest rates that store cards charge take away any savings that they are offering.
But if you are looking to build your credit, try a store credit card from a store you never buy from. For example, I was recently pre-approved for a JC Penny's store card. I have spent no more than $10.00 in JC Penny's in the last 10 years, it is not a store that I frequent. So I accepted the card since I'm not worried about spending on it. -
Step 3
Keep your credit cards to less than 10% of the balance. This looks good to other potential creditors and keeps your score high.
Comments
blaquetweety64 said
on 11/15/2008 great advice!! 5*
Handmadedreams said
on 11/1/2008 I really needed this advice. Thanks.
writetruth said
on 10/22/2008 Great advice. I would stay away from store credit cards all together. Mortgage lenders like to see that you have at least one regular credit card and it tremendously helps your credit. Just don't use it much - because if you do, it can also work against you! 5 Stars ~!~