Raising your credit score the fun way

Many millions of people in America are suffering from bad credit. This can be due to a number of things including loan defaults, missed electricity payments and unpaid credit cards.

When a person has a bad credit rating it is more difficult to receive favorable terms on insurance coverage. It makes it more difficult to obtain the apartment of your choice because many landlords look at the credit rating of a potential tenant.

Employers will look at the credit score of a potential employee and make employment decisions based on that. There are ways to raise your credit score and bring it back up to the desired level.

One of those ways is to obtain a personal loan and then pay that off regularly. If you are looking for help with a bad credit loan check out moneysupermarket.com.

The loan should only be for a small amount and the payments should be made every month until the loan is paid off. You do not even have to use the loan to buy anything. It is simply for the purpose of increasing your credit score.

Another way to raise credit scores is to take care of all debts that you have and begin a systematic monthly repayment plan. This shows that you are making an effort to pay off your debts.

This means not purchasing any more items on a credit card until the majority of the balance has been paid off. It would be best to pay more than the minimum payment required so that debt is paid off more quickly.

There is a catch in trying to better your credit scores while still in debt. That catch is that you must use credit in order to be able to raise your credit score.

Since you are not going to put any more debt on the credit card you already have, you should obtain another credit card. This card is only to be used to establish a better credit rating.

This means that you will make only small purchases on this card and then pay the balance immediately. There should not be any debit carried on this card for any length of time because that would only defeat the purpose. You must be disciplined with this.

Make sure that all monthly phone and electricity bills are promptly paid. If there is anything owing, make sure this is taken care of as soon as possible.

If there is a dispute about a bill or you have fallen severely into arrears, do everything you can to avoid it from going to collection. Having bills that you owe turned over to collections is a big strike against you. Try to avoid this at all costs.

Check your credit reports regularly. The reports can be obtained for free from government run websites. It is important to look at your credit reports on an annual basis to make sure that all the information is correct and that there is nothing added or removed that could hurt your credit score.

You will want to make sure that all debt that has been paid is removed from the report and you have a clean record. You will also want to make sure that accounts that belong to others are not placed on your credit report by mistake.

Following these suggestions can help increase your credit score substantially. This may not happen overnight but it will gradually go up if the repayment plan is persisted with.