My Credit Score Raising Tactics

It was after three o’clock in the afternoon and I had been at the car dealership since mid-morning. Earlier that day, I had picked out the shiny new silver two-door Honda Accord that I had been desiring for quite sometime. Now I was in the hands of the finance specialist, as I had been for several hours. This gray-haired, matter-of-fact gentleman was trying to find a lender that was willing to finance over $25,000 for me, whose credit rating was a measly 545. As the business day drew to a close, I wondered if I was wasting my time and if I should walk away from the dealership while I still had a shred of dignity. When the finance specialist finally found a lender, the interest rate and monthly payment were so bloated that I had to turn down the offer. I left that dealership determined to improve my credit score. I did and here are some of the credit score raising tactics that worked for me.

The first action that I took was to request my credit report from all three credit bureaus: Experian, Equifax, and TransUnion. I checked to make sure all of my information was correct, including my most recent contact information. I double-checked all the listed accounts to make sure the balances and account numbers were correct. That was where I found a few errors. A couple of my delinquent accounts had been turned over to collection agencies, yet the credit report did not reflect that the primary accounts had been resolved by the collection agencies. Also, there was an account on one of my reports that wasn’t even mine! I simply filled out the dispute letters that come with the credit report and sent them off to the credit bureaus, knowing that they only had thirty days to respond.

On my credit reports was an account that I had with a cell phone company that I had refused to pay. It had only been a debt of $150 but I knew I was right about the dispute and the cell phone company was wrong and I did not want to give in. However, I had to evaluate what was more important—my ego or my credit score. I decided my credit score was much more important and reluctantly paid the small debt that I owed. It was only a small price to pay to see my credit score jump up a few points.

My next step was to get my credit cards under control. I had several credit cards in my name with credit limits ranging from $250 to $5000. I knew it was a bad move to rashly close any credit card accounts as it ruins the debt to credit ratio so I just paid down the balances to 50% of the available credit or less. It took some discipline but I paid each credit card bill on time every month and paid more than the minimum payment required. I even gave two credit cards to my mom to hide from me so that I wouldn’t be tempted to charge them to the max again.

Next, I decided to put several of my bills, including my auto loan, on automatic draft from my checking account. This was to make sure that I never made a late payment again. Not only would I not have to worry about writing checks, all my bills would be paid on time and I would save hundreds of dollars in late fee payments. Not having any late payments on my credit history would definitely improve my credit score.

Lastly I enrolled in a credit monitoring service to help me keep an eye on my credit report and credit score. For a small monthly fee, I got unlimited access to all three of my credit reports online. I also received email notifications anytime there was a change to my credit report—whether positive or negative. I checked my reports constantly, watching my credit repair steps slowly manifest their benefits on my credit report and credit score.

One step that I couldn’t rush was the time element. I knew certain derogatory items on my credit report could only get better with time. After all, bankruptcies take 7-10 years to disappear from a credit report. I was just sure to do my part and pay my bills on time and not apply for any more credit.

After about six months of doing the right thing, my credit score rose to 600. I was so excited that I could barely contain myself. I dialed up the finance specialist at the dealership to inquire if my silver Accord was still available. As a matter of fact, they had two on the dealership lot but I suddenly decided that I didn’t want the car. Raising my credit score was a result of hard work and a new attitude. I had a perfectly good car that I was still making payments on—there was no need to get a new one and add another item to my credit report.

I know that as time passes, if I continue making monthly payments and reviewing my credit report on a regular basis, my credit score will go up and up. When I am ready to finance a new car with credit, I know I won’t have to sit in a dealership for hours trying to get an offer, nor will I get stuck with a ridiculous interest rate.

My credit score raising techniques worked for me and they can definitely work for you!

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