A tip to increase your score

Do not close your old credit card accounts. Old established accounts show your history, and tell about your stability and paying habits. If you have old credit card accounts that you want to stop using, just cut up the cards or keep them in a drawer, but keep the accounts open. Closing your account will actually hurt your score. Eventually, your score will go up again. I don't recommend closing an account if you are in the process or planning to get a loan soon.

Estimate your own Fico Score

I found this estimator at: http://www.bankrate.com/brm/fico/calc.asp It is fairly accurate and can give you an idea of what your score is.

The Fair Credit Reporting Act

Where can I find out more about credit reports, my rights as a consumer, the Fair Credit Reporting Act and the FACT Act?
Please visit www.ftc.gov/credit

What is a credit score?

A credit score is a complex mathematical model that evaluates many types of information in a credit file. A credit score is used by a lender to help determine whether a person qualifies for a particular credit card, loan, or service. Most credit scores estimate the risk a company incurs by lending a person money or providing them with a service –– specifically, the likelihood that the person will make payments on time in the next two to three years. Generally, the higher the score, the less risk the person represents.

Do you know your credit score?

You should know--your financial life may depend on it. If your credit score is lower than 550, you will find it practically impossible to get approval for loans or credit, or to obtain a credit card. You will also be charged higher interest rates than what regular borrowers get. So if you do have a low score, you need to improve it as soon as you can. That means going into debt management, consumer credit counseling, and credit repair. To obtain a free copy of your credit report go to www.annualcreditreport.com. (This does contain your FICO score.) If you would like to know your score, you can obtain it through consumer agencies or various internet sites. You can also get it from your local mortgage broker.

Good credit can equal good loans

Credit repair is a million dollar industry with a lot of scams. Finding a loan with poor credit isn't hard, getting a decent interest rate can be. When you clean up your credit report you end up saving hundreds, if not thousands, of dollars in interest charges. We strongly recommend you learn what you need to do to repair your credit legally so you can qualify for low rate loans and credit cards.
One of the first things you need to do, whether you filed bankruptcy or just need to rebuild your credit, is to set out a plan to rebuild your credit, as well as how you will use your borrowing abilities in the future. Without a good plan of attack on your financing and borrowing usage, you will run the risk of being in financial trouble again within a few years or so. Don't become a repeat statistic. Plan now, for protection later.You have two options when it comes to repairing your credit ...
1) hire someone, preferably an attorney who knows the credit laws;
2) do-it-yourself using a good quality guide and your 3-in-1 credit report; Whichever way you decide to go, here are just a few tips to keep you on track:
Don't fall for scams that tell you to create a new credit file ... that's credit fraud if you do it, and can make you subject to legal repercussions;
Do read the Fair Credit Reporting Act so you have an idea of your rights while you go through the credit repair process;
Get yourself organized and committed to the process, there is no overnight fix;
If you use an online service, you want to know what the fees will be, monthly or "as you go" is best, and you want to be able to cancel at anytime;
Always act in a cooperative and professional manner when dealing with creditors or collection agencies;
Don't make threats, however subtle, if you can't back them up. Deciding whether to hire a credit repair firm, or doing it yourself, depends a lot on your willingness to work, as well as your ability to be organized and follow through on the process. If you really don't want to deal with it yourself, and would rather a professional, we recommend one who is well-versed in the use of the Fair Credit Reporting Act to protect your credit, and who will handle all the detail work for you.