It seems as if 2010 will be the year when everyone finally focuses on improving their credit. With the current economic situation, it is more important now than ever to become more educated about credit card companies, credit and credit scores. In December 2008, Congress passed new credit card laws to change many practices of the credit card industry which had been seen as unfair to cardholders. For more detailed information on this new law go to: http://www.creditcards.com/credit-card-news/obama-signs-credit-card-law-1282.php or www.bankrate.com
Step 1 – get your current credit snapshot. If you were beginning a diet you wouldn't guess at your weight right? It's the same with credit; it's important to know your starting point. So get a credit snapshot by obtaining a free copy of your credit report from each of the three major credit agencies at: www.annualcreditreport.com. You can also purchase your FICO score for a small fee from one of the three credit agencies from the same website.
Step 2 – get smart. Unless you are a dietitian, you probably wouldn't create a diet that you knew would guarantee success. So, unless you are a credit expert, don't go about trying to improve your credit blindly. Start by understanding the basic do's and don'ts of credit management. myFICO.com has a wealth of credit education that can help you become knowledgeable about managing your credit.
Step 3 – build your plan. After you've become knowledgeable, then you can really attack your credit problems. You will have your credit report, score and history length and payment to build your plan. Your payment history is one of the biggest components of your FICO score so you really need to focus on keeping current with all of your bills. Understanding how to deal with each credit problem starts with education and continues with a well conceived plan.
Step 4 – check your status. You'd be surprised to know how many people only check on their credit when making a major purchase. If there's a problem, finding out just before a purchase doesn't leave much time to fix the problem. You'd likely step on the scale every couple of days to see if your diet is working, right? Do the same with your credit, especially if you've created an improvement plan. It is recommended to check your credit twice a year and at least 6 months before making a major purchase.
Source:http://www.myfico.com/crediteducation/questions/Improve-Credit-Score.aspx?LPID=FICO337&cm_mmc=yesmail-_-newsletter-_-January2010-_-FAQ1
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