How to Re-Build Your Credit Score

So you maxed out a few credit cards in college, and you did not know your cell phone was roaming on last years trip to Florida. Then there are the hospital bills and you did not have insurance. And worst of all your last car was repossessed last year. Now you can't finance cheese on a burger or buy your mothers love. Relax! Calm down, and read this article and learn how to improve your credit score. I am a finance manager at a Honda Dealership in California. Everyday I work with banks and credit scores. Follow this simply instructions and begin to improve your score immediately.

Step One- Find a secured credit card, (such as Orchard Bank Visa) that report to all three credit bureaus monthly. Use the card and pay it off every month. Even if your line of credit is as low as $200.00 don't worry you have to start somewhere. The bank will increase your line of credit as you prove yourself by making onetime payments. And the most important thing is your credit score will begin improving as soon as your make the first on time payment--little by little.

Step two- If you have collections on your credit report call the creditors and make arrangements to pay them. Pay the creditors are willing to take the collection off your report first. Medical collections and cell phone collections should be paid last, unless they are cheap and easy to pay.

Step three- Creditors that are not willing to remove the collection even if you pay, and creditors that put your account in charge off status should be referred to a law firm that specializes in credit reports (such as Lexington Law). These firms will write letters and try to remove collection and charge off accounts from your credit bureau. These firms are very successful and very affordable, many starting around $35 monthly. Continue to pay them until all collections are removed from your credit.

Step Four- Pay off any existing credit card debt. The less your owe on credit cards the better your credit score. Pay them off as soon as possible. No bank wants to loan money to someone in debt up to their neck in high interest credit cards.

If you follow these steps you will be surprised how fast your credit score will improve. And don't get waste your time and money on the "quick fix" credit repair kits on-line. Leave the letter writing to law firms who specialize in the field. A person can not improve a bad credit score they earned from years of slow paying or no paying accounts with a fix my credit quick kit from a spammer on-line. Pay your bills on time and live within your means.