Fix Credit Score

There are many reasons for many people to not have no available credit history and a low credit score. Maybe you and your spouse are just starting out in the world, or maybe you both pay cash for everything and have never needed a loan before. In any case, if you have no available credit history, your credit score is likely to be really low, but there are low cost ways to fix credit score.

There is no reason to be worried about this small temporary roadblock, because the easiest way to fix credit score is to get hold of a loan, and pay it off fast and on time. In general, installment loans are weighted more heavily than credit cards are. I do not know why, but that is the way it is. In other words, you will improve your credit score faster if you buy goods with an installment loan, rather than acquiring a credit card.

Another way to get a better credit history is to take $1000 and open a 6 month CD account at a bank or credit union. It is really up to you which one you choose. Now, get an installment loan for $1000, using that CD as collateral. Now, here is the magic. Take the $1000 loan, and open another 6 month CD account at another financial institution. Take another loan for the $1000 at the second institution. Now, you have to do this one more time.

Now what you have is 3 loans at 3 different banks or credit unions. Pay the minimum payment for 6 months. In the last month, go to each financial institution and cash out your CDs and pay the loans off. You now have a valid good credit history that will reflect in your credit score, and you did not have to go into long term debt to get it.

This is what I call an easy and sure way to fix credit score if your score is really low due to the fact you and your spouse do not have a credit history.
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