Credit Score Management

Here are a few ways how you can improve your credit rating :
* Establish Credit History ~ Your credit rating is established partially on your credit history. Your credit history is based on the information that your creditors have reported to credit bureaus, including credit cards, loans, and even some utility bills. So, if you want to build your credit, get a credit card, charge a few things, and pay off the majority of the balance. Financial experts recommend keeping your account balances less than 50% of your available credit. It shows that you have the ability to pay back your debt.
* Don’t Apply for or Take on Too Many Credit Cards ~ Having and using a credit card wisely can be beneficial to your credit rating.
But, if you’re constantly applying for new credit cards, it can hurt your rating, especially if you’re getting turned down for them. Applying for too many credit cards, in a way, shows that you don’t have enough capital to afford your cost of living on your own income. And if you’re getting turned down by creditors, it’s an indication that your credit standing just isn’t up to par, and other creditors will weigh these rejections against you.
* Make Payments on Time ~ If you want to build and maintain your credit rating, pay your bills on time and don’t miss any payments. If you have missed payments in the past, get back on track. Your recent payment history counts more than ancient history.

I would leave this to professionals unless you have a high tolerance for run around, frustration, and headaches. Simple credit repair should fix this for you depending upon how low your score is. You may also need an authorized user tradeline which would also raise your score.

Get a copy of your credit report (AnnualCreditReport.com). If you have any single entry derogatory items, negotiate pay for delete — you pay $x and they remove the item from your report. This will help your score, but won’t work for regularly reported items like credit cards or installment loans. Collection agencies can only remove what they report. The original creditor’s charge off remains.
Paying off ancient debt won’t help your score (unless you get the item deleted). But, mortgage lenders will require that all derogatory items are settled before approving you. Many want the settlement at least 6 months before you apply.
If the debt is over 3 years ancient, offer 25%; 2 or 3 years ancient, offer 50%; less than 2 years, offer 75%. Lump sum gets the best deal. Payment plans have to be small term. Get any settlement agreement in writing and keep that agreement, along with your payment proof, forever. Do not give the collector direct access to your bank account.
If you don’t have a current credit card, get one, even if you have to get a secured card — you pay $x and they hold that as collateral against the line of credit. Use the card and pay it in full every month. This will build excellent payment history. You will need at least 24 months of excellent payment history to see any improvement in your score.

Step one: pay your bills