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Building Your Credit Score Guide

Your Credit Score can have an impact on many things in your life including your job, home, and insurance. Those with little to no credit can find the process of rebuilding credit after bankruptcy daunting. However, it is vital to ensuring your future. Here are some basic steps anyone can take to build their credit score including what to do and what to avoid.

Credit Report 101

A Simple Guide To Building Your Credit Score

1.  Check Your Credit Report
Credit reports are used to create your credit scores, a three-digit number that lenders typically use to gauge your creditworthiness.
3 Credit Reporting Agencies
  1.      Equifax
  2.      Experian
  3.      Trans Union
  • You are entitle to a free annual look at your reports from
  • You can have a credit report if you have never had credit? Maybe.
  • Somebody else’s information could be mixed in with your report, either through a credit bureau mistake or because of identity theft.
  • You will need to clean up your credit report before trying to apply for new accounts.
  • Check The Federal Trade Commission’s identity-theft site.
2.  Establish checking and savings accounts
  • Lenders see bank accounts as signs of stability.
3.  Understand the basics of credit scoring
  • The important factors: Whether you pay your bills on time; How much your available credit you actually use.
  • Set up automatic payments or reminder systems so that you are never, ever late!
  • Keeping your credit use to less than 30% of your credit limits.
  • Pay your bill in full each month.
4.  “Borrow another’s record
  • By being added to a credit card as a joint account holder or by getting someone to co-sign a loan for you.
5.  Apply for a secured credit card
  • Have no application fee and low annual fee.
  • Convert to a regular unsecured card after 13 to 18 months of on-time payments.
  • Be reported to all three bureaus.
  • Opening a slew of cred accounts in a short period of time can make you look like a risky customer
6.  Get a store card
  • One or two of these cards is enough.
  • These cards don’t do as much for your credit scores, as bank cards (Visa, MasterCard, Discover etc.), but they are usually easier to get.
7.  Get an installment loan
  • To get the best credit scores…including revolving accounts (credit cards, lines of credit) and installment accounts (auto loans, personal loans, mortgages).
  • Use revolving accounts lightly but regularly.
  • You have to have had credit for at lease 6 months, with at least one of your accounts updated in he past 6 months.
  • Using your cards regularly should ensure that your report is updated regularly. It also will keep the lender interested in you as a customer. If you get a credit card and never use it, the issuer could cancel the account.
“Pay on Time, Wipe Out Debts, Raise Credit Score”
Of you didn’t like what you see, can you improve your score? Yes. fortunately, scoring models put more emphasis on the present than the past. So with ever b ill you pay on time and every debt you wipe out, your score will rise.
Helpful Links
Get your free credit report at Annual Credit
Credit scoring explained by the FTC here

A list of secured credit cards provided by

by Bradley Covey

Bankruptcy: not a failure...A Fresh Start! Let Bradley Covey help you understand your bankruptcy options including Chapter 7 and Chapter 13 bankruptcy. Call Today A Fresh Start!
232 S. Batavia Ave.
Batavia, IL
Phone: (630) 879-9559
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About Bradley Covey

Bradley Covey is an Illinois bankruptcy attorney helping individuals and businesses file Chapter 7 bankruptcy and Chapter 13 bankruptcy in Kane County, DuPage County, Kendall County and Will County, Illinois. Brad attended SIU undergrad and NIU College of Law. Brad served in the military at Ft. Stewart, Georgia and Ft. Sill, Ok as a Field Artillery Officer. Brad later served in the Illinois National Guard as a Major.

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