Not many people have a credit score of 300. In fact, it's almost statistically impossible to have a score that low. That said, many people have bad credit. If your credit score is anywhere under 600, you really need to make the changes that will help you to improve your score.
A few years ago, I had terrible credit. Because of my terrible credit, I could not qualify for anything. It's been a few years, but now I have 800 credit which is almost as good as it's possible to have. I made a lot of changes to improve my credit score. This article will help you to do the same. Here are the basic steps you need to follow:
– Open two lines of revolving credit. In other words, get two credit cards. Store credit cards will work as long as they report to credit bureaus. I could not qualify for them so I did not use them. For me, I could not qualify for any unsecured cards. If your score is under 600 you are probably in the same boat. If you're in the 300 range you definitely are. I personally had to get two secured credit cards. I had to put down deposits to get them but in the end, it was worth it.
– Make sure to make all of your credit card payments on time. Making a payment late will hold down your score. Making on time payments will help them to improve. I had to make a bunch of on-time payments to overcome the mess I had made. Your payment history accounts for 35% of your credit score.
– Keep your balances at zero. High balances do a lot of damage to your credit score, in fact it accounts for 30% of the score. If you already have high balances, pay them off and pay them off fast. Stop making other purchases until you've zeroed them out.
– Wait for as long as you have to wait. Your credit is not going to turn around overnight but it will not take forever either. I had to wait six months until I could get a credit card that was not secured. Within 12 months my score had improved by over 200 points.
About a year after I committed to turning my credit around, I decided to try to get an auto loan. I was approved. The guy who approved the loan asked a lot of questions about my history but I was able to explain that I was committed to paying on time. I guess he believed me. It was the truth.
To turn around your credit, you have to make a deep commitment and you have to stick to it. I did and it turned things around in a huge way.