How to Increase a Credit Score for Secured Bank Loans

Today, more than ever, a good credit score is a must if you want to get a secured bank loan. Banks are tightening up their standards and are less willing to loan money, even to people with good credit. To get the best interest rate and to increase your chances of being able to buy that house or car you've been looking at, you must ensure your credit score is as high as possible.

Instructions

Credit report

1

Contact Experian, Trans Union and Equifax and get your credit report. Review the information. Dispute information that is incorrect (links to the major reporting agencies are included in the Reference section).

2

Pay down your credit cards and, when you do, devote the most resources to the cards that can get paid down quickly. Contact the credit card company and ask them to increase your line of credit, even if you won't use the additional credit, because your score is adversely affected if you always use all of the credit available to you, even if you pay it off each month.

3

Send a goodwill letter to creditors with whom you have had a couple of late payments, if you otherwise have a good record. Ask them to erase the negative listings.

4

Demand that the credit reporting agencies remove accounts not listed as "paid in full" or "current" when they are, late payments or collections that truly aren't yours, accounts discharged in bankruptcy listed as unpaid, late payments from over seven years ago or accounts listed as "closed by credit grantor" when they weren't.

5

Negotiate with collection agencies that hold smaller debts (under $500) by getting them to agree to delete the records from your credit reports if you pay them in full. Ask for this in writing and pay with a money order.