Improve Credit Rating - How to Raise Your Beacon Credit Score Starting From Scratch

By Contributor • Mar 27th, 2009 • Category: Credit

Credit Score

Your credit score is the single most important factor that decides your financial success. The process of building a new credit report score after having suffered a job loss or some sort of family emergency may seem impossible, but the truth is starting from scratch is more simpler that you think. The hard part when it comes to starting over and raising your credit score is maintaining a consistent payment regimen with the credit bureaus.

The first step to making your beacon score better is getting a copy of your free triple score report. Once you have copy of your report, it is important to examine your report thoroughly for mistakes. You should never assume that you report is accurate. You will be surprised at the amount of mistakes on your report. Some of the most common errors may include: reporting late payments erroneously, listing the same negative account multiple times, and reporting a family member’s account on your bureau. The best way to deal with mistakes on your report is to consult with a credit attorney.

The second step to improve credit score is adding some positive accounts to your report. Even if all your negative items are no longer showing or expire from your credit report, you still need to have some positive accounts to produce a rating. One solution to establishing new credit is obtaining a secured card. These companies allow you to put a deposit into a savings account and they will give you a credit card with the same amount as your initial deposit. Characteristics of reputable secured card companies are: they offer a little 25% higher limit on your deposit, they increase your limit every 3 months, they report to all 3 credit bureaus, and they do not disclose your credit cards as a secured to the credit reporting agencies.

The third step to increasing your credit rating is having a wife, husband or close family member with a positive credit rating add you on as a co-borrower. This technique although very effective is a little risky because if your sponsor fails to pat their account on time, it will also affect your credit rating. There have also been rumors that the credit bureaus may stop reporting co-borrowers but for now it is still effective.

The fourth and final step to raise credit score is making your payments on time. When creditors are qualifying your credit, they tend to look at your previous six months of payments. Your current payment history will give borrowers a picture of your present financial standing. The credit bureaus will also continuously raise your credit score a few points for every month of timely payments. If you can afford remain current for at least 2 years, you will have succeeded in improving your worthiness with the financial institutions.

As you can see the steps to getting your credit re-established and regaining your good credit report back is as easy as getting a copy of your report, disputing negative items, adding new positive credit, and making on time payments. Once you have revamped your credit report, you should also consider getting identity protection to prevent others from destroying your creditability.

Marc Marseille is an internet professional with several websites on the internet providing valuable resources to many.

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