- 1). Pay off your debts. Search your credit report for delinquent collections, charge-off and bad debts. If any information on your credit report appears to be false, then dispute it with all of the credit reporting agencies. Under the Fair Credit Law, consumers have the right to dispute any item appearing on their file. After 30 days, if no one from the debt collector responds, then the item is removed. But the golden rule of credit is paying your bills on time.
- 2). Pay down your credit cards. Carry a 20% current balance of your maximum available credit. Add extra payments to the minimum balance due. Continue to use your credit cards for small purchases. Creditors look at spending habits and ability to pay when considering credit increases. Don't open new accounts to increase available credit. Focus on older accounts.
- 3). Ask a friend or family member to add you to his card. If his low credit balance reflects a solid payment history then ask about being added as a cardholder. Once added, the cardholder's entire history shows up on your credit report with instant points. Consult with the credit card company to determine your eligibility.
- 4). Inquire about a secured loan. Credit unions and banks extend loans on savings, CD's and other accounts. Originate a small amount and pay it off within the month. But make sure that your financial institution reports the activity to the three major credit reporting agencies.
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