Some of you might not be aware of this. If you are privy to this information, you most likely followed these steps if you ever had bad credit. If your credit score is in the 450-500 range, by following these simple steps you are guranteed to raise your credit score over 650 or even up to a 700 rating. Here is how you do it!
3 VERY SIMPLE STEPS: HOW TO INCREASE MY CREDIT SCORE FAST
PAY BACK AS MANY SMALL OVERDUE BILLS OR DEBTS SHOWING UP ON YOUR CREDIT REPORT:
If you only have very large debts or overdue bills to pay back, then you are going to have to figure out a way to pay this full amount back as fast as you can. However, if you have small debts on your credit mixed with large ones, take care of the small ones first just to erase that debt from your credit. This actually will work wonders for your credit. For example: if you have 2 very large debts and 3 small debts, take care of the 3 small debts immediately and pay the large debts when you can afford to pay it. The majority of people with bad credit completely ignore the small debts that can easily be taken care of. Credit is not just about how much money you owe. There are a vast amount of people who have large amounts of debt mixed with small debt. Being that they cannot afford the large debts, most of these people throw their hands up ignoring any other debts they have all together. I used to think this as well. Needless to say, my credit score went from a 500 to a 620 in about 8 months (along with taking the other steps of course)! If you owe a ton of people, it can actually be worse than owing a ton of money. Pay back the small debts you can afford to pay.
POWER MOVE! GET A CREDIT CARD OR A PRE PAID CREDIT CARD
Once you were able to knock some debt off of your credit report, it will benefit you tremendously by getting a starter credit card or a prepaid credit card. If you are unable to receive a start-up credit card for people with a low credit score, then get a pre-paid card. Either one will be effective for purposes of increasing your credit fast. This is what I call a POWER MOVE! Once you receive your credit card or pre-paid credit card, PURCHASE EVERYTHING WITH IT. DO NOT USE YOUR OWN MONEY. If you buy a pair of shoes put it on your card and use the money you would of spent to pay the bill. If you purchase groceries, put it on your card. If you purchase a pack of bubble gum, put it on your card. In doing this, it is very important that you use money management! This is actually money management on steroids; therefore, be very controlled and wise when doing this. If your shoes cost $100, sit that $100 aside to pay your credit card bill. If your groceries cost $200, sit that 200$ aside to pay your credit card bill. If you followed my step 1 by paying any small overdue bills or debts showing up on your credit report, your credit will increase tremendously by utilizing this powerful technique. The starter credit card I used when I had terrible credit was a CAPITAL ONE PLATINUM card. I only received a $300 credit limit and had to pay a small fee to receive the card. My APR was through the roof. However, it was well worth it.
APPLY FOR A SMALL LOAN
I actually took this step before applying for a starter credit card. Once step one is complete, I highly advise most people to take step 2 by using a prepaid credit card or trying to get approved for a starter credit card. I was able to get approved for a small loan because of the credit union attached to my place of employment. They take the money right from our checks ;therefore, they approve certain small loans even if your credit score is really low. If you think you are ready to apply for a small loan then give it a try. If you know someone personally who can help with your loan application, then let them help you (Hint Hint). This loan should not be a large mortgage or a large car payment etc. This loan should be under $15,000. I received a $14,500 loan for my motorcycle. My credit score was in the low 500 range. Even though my APR was extremely high, it did not matter. The only important task was paying my loan on time every month. This was easy for me because the credit union at my job take the money out of our checks before we receive them. With that said, another very important step after approval is to set up AUTOMATIC PAYMENT! Do not leave that bank without setting that up. You may be happy you just received a small loan for whatever you purchased. Just remember that you are building your credit. A late payment can be detrimental to you.
If you take these easy steps, your credit score will definitely increase. As I stated earlier. I went from a 500 to a 620 in about 8 months. I payed back my small debts, applied for a small loan, and a few months after that I applied for a CAPITAL ONE PLATINUM credit card with a $300 credit limit.
If you have any specific questions about how I increased my credit score fast, feel free to comment below and/or email me at firstname.lastname@example.org
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