Authored by Lori Godin in Credit Card
Published on 01-12-2009

Although there are no quick fixes to bring a credit score from bad to good, there are five things that a customer can do to create a higher credit score over a period of time. Here are five of the quickest methods to begin increasing your credit score, improving the appearance of your credit file and learning to become more adept with personal finances.

1. Open a secured credit card account. To develop the patterns in which you use credit, a secured credit card can be used to make an impact on the credit score in as little as a month. Secure credit card companies report to the three main credit bureaus on a monthly basis and therefore in as little as one, three or six months the debtor can begin to see an improvement in the credit score, if the payment and account history have been positive over this period of time.

2. Pay off collection accounts. Repaying collection accounts can increase the credit score immediately, especially if the accounts have been removed from the credit file. When speaking with the collection agency, determine if a negotiation can be made that will allow the removal of the blemish on the credit score for complete repayment of the account. Be sure to get this in writing from the collection agency.

3. Pay all accounts on time. A portion of the credit report contains information concerning payment history and the repayment of debt. To ensure a credit score can be increased simply make payments on time to all creditors, this information will be reported to the credit file.

4. Use your words accordingly. Each customer is granted the chance to make a one-hundred word statement on the credit report that businesses are granted access to when determining if the client is suitable for credit. Use this statement accordingly and you could see not only an increase in your credit score, but an increase in the amount of approvals that you receive.

5. Pay off balances. Using more than thirty percent of your credit limit is actually detrimental to your credit score if the balance is carried from month to month. When the credit score is calculated, the less you owe, compared to your credit limits, the better! Paying off balances could mean the difference in valuable points to the credit score.