Credit Bureau Scores

Written by Gregg Ruais
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Despite many claims to the contrary, there is no quick fix for an impaired credit score. Keep in mind, however, that responsibility has its rewards. Making timely payments on loans and paying off large credit card balances in a hurry can help offset past mistakes. A poor credit rating can be improved to average in a relatively short period of time. Average credit can then become good credit.

One thing to remember is that the major credit bureaus use computers to calculate your score. It's a soul-less process that can be manipulated. All you need to do is find lenders, repay them on a timely basis, and then request that the bureaus include those loans on your credit report. There is a catch-22 here, if you haven't noticed. People who have less than perfect credit need to borrow money in order to prove their credit worthiness, but banks and other lenders often refuse to lend money to those who have imperfect credit scores.

Obtaining Loans to Improve Your Credit Score

There are ways around this. If you can save $1,000, for example, you can use that money as collateral when you request a loan for that amount. Set up an appointment to request a personal loan through a bank. Dress well, and have a reason for the loan. In other words, do not just say you're trying to repair your credit.

Most banks will have no problem lending $1,000 to someone who can put up an equal amount in collateral. The collateral may be placed in a savings account with that bank and become available to you as you repay the loan. Do not pay the loan off immediately. You want the credit bureaus to see that you have made timely payments for twelve months.

You will incur some interest charges, but if you're really trying to rebuild credit, the interest on a 12-month, $1,000 loan will be worth the cost. You can take out several loans through different banks. After the loans have been paid, request the three major credit bureaus to incorporate these loans into your report. The bureaus all have their own forms for this, and there may be a small processing fee. This is a surefire way to improve your credit score, as long as you make payments on time.

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