Adding Positive Information to Your Credit File

1. Get an Installment Loan: You might take out a small, personal loan from your bank or credit bureau and pay it back over time. Or you might “suck it up” and go for a high-rate auto loan. Just be sure you’re not tying yourself to a long-term loan at usurious rates. Get a shorter loan, if you possibly can, and make a decent down payment to make sure you have some equity in the vehicle so that you can refinance it when your credit improves.

2. Consider a Cosigner: If you can’t get a loan on your own, you can try to find a cosigner to facilitate the deal. But realize that person is putting his credit history on the line for you. If you mess up, your cosigner pays the price, because they’re just as legally obligated to pay the debt as you are.

3. Make Sure Your Credit Limits Are Correct: This is a point that many credit re-builders unfortunately overlook. A big chunk of your credit score has to do with how much of your available credit you’re using. If the credit limits are showing up on your report as lower than they actually are, your debt utilization ratio will be higher than it needs to be. You can use the dispute process, but it might be just as expeditious to call your creditors and ask them to update your credit bureau files.