If you have been a victim of the recent economic downturn, you may have a credit score that is less than what you wish it was. If you are in this situation, read on for some tips on how to improve your credit scores.
Get Out of Debt
While you do need to use credit to maintain a good credit score, being in debt is another story all together. Specifically, carrying high credit card balances can really drag your score down. People who have credit cards that are maxed out can see a significant improvement in their credit scores just by paying them off. In fact, this is one of the best strategies you can use when you are working on credit restoration.
Get Collection Accounts Removed
Did you know that it is possible to get collection accounts completely removed from your credit file? The most important thing to remember is to never pay a collection account off simply by sending a payment in. You need to negotiate. Call up the creditor and let them know you are more than happy to pay them every dime that they say you owe. But, you will only do this if they give you a letter stating that they will completely remove the account from your credit file once they have received payment. It is especially effective to use this technique the last week of the month when collectors are struggling to meet their collection quotas. This is one of the most powerful methods of credit restoration you will find.
If you have a parent or spouse with great credit, one way to boost your credit score is to get them to add you to one of their accounts. This is especially helpful if they have an old account with a high limit, low balance and a perfect payment history. This way you will benefit from the entire history of their account. This can be an extremely fast way to improve credit rating.