I'm sure you've heard the many ways to obtain a better credit score.
1.
Pay your bills of course.
Instead of going out to eat and spending your extra money you should save that money and put it towards bills.
2.
Don't' apply for loans, new credit cards, or even check your own credit.
The more your credit is checked the more it falls.
It may only be a couple points each time but that alone will add up over time.
3.
Cut up that credit card.
Basically if you're here reading this then your credit isn't so hot.
You have to stop the problems first before you can start rebuilding.
These ways are very good at stopping the problem but you also need to use your credit that you do have to build it up.
The good news is that it's possible to boost your numbers if you have a handle on your finances and you know how credit scores work.
The first thing you should do it clean up any bad marks from your record.
If you have an outstanding balance on a credit card try to negotiate it down.
I personally have persuaded Capital One to knock off 70% of my credit card balance.
You just can't let them bully you around and throw a crazy low number at them; they will usually try to make a compromise.
If they just refuse don't worry about it they will come around if you stay strong.
Another way to build your credit is to save up about $500 take that money and go buy a Certificate of Deposit at your local community bank.
CD's are essential to the operation of the bank that is one the main ways they make money by using deposits to fund their assets that earn interest.
They will usually give you a small interest rate so that you will earn money from this small investment.
Now, here is the secret.
CD's are like gold to a bank, it is the most secure collateral one can have when trying to get a loan.
No matter what kind of credit you have, if you ask, the bank will give you a loan for the principal amount of that CD.
When you pay this loan off, you will have an instant boost to your credit.
By the way, do not tell your bank that you are doing this.
They will try to stop you by saying it's not possible or something to that sort.
Just get the CD and a few days later go ask for a loan on it.
They may suggest you retire the CD but you will more than likely will have to pay a penalty for that.
This is the cheapest and safest way to build credit.
The last tip I will give is basically the more accounts you have with positive balances in them the better it is for your credit.
So, save some money, let's just say for your emergency fund, and distribute this money into several different accounts holding only the minimum balance required to keep the account open.