Who Else Wants to Know how to Improve Their Credit Score Rating on the Cheap?
This is a guest article by Ethel Wilson.
You won’t believe how many people need to improve their credit score rating. Fair Isaac Corporation (FICO) – the organization responsible for developing and overseeing the internationally accepted formula for computing credit scores- recently released data indicating more than 40 million people need to raise their credit score rating. All of them have scores below 599, which is considered to be in the bad credit bracket. Many of these people are unaware of their bad rating, while many that do are not sere how to correct it. There is no need to hire someone to do it for you. There is an inexpensive method that anyone can use to improve their credit score rating.
Improve Your Credit Score Rating With a Secured Credit Card
There is a constant flow of information being added to your credit history on a monthly basis. The secret to maintaining a positive credit score rating is to ensure that the positive data entering our record outnumbers the negative. Think of your bad credit score rating as a dirty glass of water. If we add enough clean water the dirty water will be dispelled. This is true also of a credit history. Negative information will be dispelled in accordance with the amount of positive or “clean credit” you add to it.
Adding that clean credit” information is not expensive at all. One of the most effective and inexpensive ways to raise your credit score rating is to obtain a secured credit card. The major difference between a secured credit card and an ordinary once is that you must put down a deposit on a secured card. Your credit limit will be equal to the deposit you make. This protects the lender, and at the same time gives the consumer the opportunity to begin raising their credit score rating.
You can get a secured card with as little as two hundred dollars down. Your deposit is completely refunded when you close your account, though some banks and lenders will return it after a year. You need to check the specific terms with the entity you are obtaining the card from. Because this is a low-risk card it is easy to get approval, and it is inexpensive as the annual interest rate is low, they are reported monthly to the credit bureaus, and the fees are generally low. Some have interest rates below 8%, with annual fees of around thirty five dollars.
If you’re a person with a bad history of credit card use and you don’t trust yourself, here’s an encouraging point. Even if you don’t use your card, it will still raise your credit score rating! As soon as you open an account your credit score goes up, and if you maintain a balance of zero, it will be reported every month as in good standing. This will raise your credit score rating on a monthly basis.
Of course the above advice is best followed after examining your credit report to make sure that it is error free. You can also receive a free report from each of the three major credit reporting agencies; TransUnion, Experian and Equifax, once a year. Get your free credit report today, and begin building you credit score rating quickly and inexpensively.
Ethel Wilson has been advising clients on how to improve their credit score ratings for over 12 years. With an extensive background in the banking, credit scores and financial industry, she now shares the best of her credit score information as a contributor and editor of http://www.creditscoreresource.com
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