Ways to increase your credit score

It is not too much difficult to increase credit score as you might think. If your credit score is under 620, getting a loan and credit card is difficult. You know there are 30 million people in the US that have credit score less than 620.

Here are some tips that can be used to increase credit score:

• Getting a copy of your credit score is a good idea


• Always pay your bills on time


• Paying down your Debts


• Do not close your old accounts


• Try to stay away from bankruptcy
  

  Bankruptcy is the single worst thing that will destroy your credit score. Bankruptcy will lower your credit score by 200 points or more and is very difficult to come back from.

  
  

  Once your credit score falls below 620, any loan you get will be far more expensive. A bankruptcy on your credit record is reported for up to 10 years.

  
  

  The reality of a bankruptcy is it will limit you to high-interest lenders that will squeeze out high interest rate payments from you for years.

  
  

It is better to get credit counseling to help you with your bills and avoid bankruptcy at all costs. By getting credit counseling instead of declaring bankruptcy you can raise credit score over a much shorter period of time.