What I Did to Raise my Credit Score & Other Credit Tips

In 2015, I hadn't been working for a while and decided to get a job. My hometown doesn't have a lot of jobs, so I looked for work@home internet jobs. I found a great one from a Sears company called Sitel. They had a 401K, and a good healthcare plan. I was in.

Just one problem, I had to get at least a 19" computer monitor to get the job. I went downtown to a micro-loan office, and took out a loan for $250. My credit score was around 490 at the time. It was cool, because the first payment wasn't due until I got my check from the paid training.

Sitel is a third-party call center with work@home jobs in customer service, sales, and chat customer service. They serve the NBA, American Airlines, Starbucks, and (at that time) Toys R Us. I took the Toys R Us customer service job because it was almost Christmas, and I knew there would be plenty of hours coming.

I hitched a ride to Wal-Mart the night before training started and purchased a 20" AOC LCD Monitor on sale for $96. To this date, it's the biggest computer monitor I have ever had. I bought some stuff for my house, and proceeded home to connect the monitor to the call center package Sitel had sent the week before.

Training went smooth, and before you know it, I was on the phone live with customers. It was second nature to me. My first job out of my Mom's house was for a call center taking inbound sales calls for Sears Wishbook.

My check came in a week later. I hurried to the bank to cash it, then over to the micro-loan office. Once there, I whipped out the cash to pay them. The agent made me an offer.

As with most micro-loan companies, the agent was offering me a higher loan for making such a quick payment. This time $300. No catch, it was the same high interest rate. I had only taken the loan out a little over a month before.

I took the loan. When I went to repay it, the same thing. This time $400. I started not to, but all the sudden, I remembered something from a man who had called me on a sales call years ago told me.

I could raise my credit score. The man who had called me to buy a computer while I was working at Dell. He told me, "Let me tell you a trick to raising your credit score. All you have to do is put a $1000 into a bank account and take a loan out on it. Pay it off the next week, and repeat. I am a financial adviser and I do it for businesses all the time."

I was already seeing how to get my house in order with the extra cash, so I figured it couldn't hurt. I kept taking the loan, but stopped raising the amount at $500. This went on for six months. At last, I worked up the nerve to check my credit score. When I did, my score was 680.

I was shocked. There was no way, I have student loans from the 1990s. This can't be. But, right there in Credit Karma, it said Equifax: 680. The man from years ago was right all along. I started to regret not listening to him in the first place. That didn't last long.

What I had done was what businesses have done for years. I didn't fool Equifax into thinking I had money. Instead, I proved to them, I could make payments on a revolving line of credit. It cost me $245, but my credit score was now high enough to do what I had needed to do for a long time, move.

The whole process was absent the collateral, but it did the job. Banks still need people to have a stream of income that could sustain loan payments for big loans, but it would work for the cars, houses, and even startup capital.

Small businesses sometimes need a shot in the arm, a power pellet, to get going. Whether it's to expand, grow clientele, or take on new products; the money from a loan can give a business the foundation for growth.

The only way to get a loan is through a good credit score and a money stream. Most active businesses have solid money streams, while others are struggling to stay afloat. If your business falls in that second category, this is not for you. Spreading, or re-shuffling your debt will only dig the hole deeper. You need to see a financial adviser.

It worked out for me, I moved out of the crumby house I was living in and got an apartment. There was more that I could have done to make my score much better. Here's a few tips from different websites to help you out.

My FICO
Check your credit report.

Setup payment reminders.

Reduce the amount of debt you owe.

Pay your bills on time.

If you have missed payments, get current and stay current.

Be aware that paying off a collection account will not remove it from your credit report.

If you are having trouble making ends meet, contact your creditors, or see a credit report.

Keep balances low on credit cards and other "revolving credit."

Pay off debt rather than moving it around.

Don't close unused credit cards as a short-term strategy to raise your scores.

Don't open a number of new credit cards that you don't need, just to increase your available credit.

If you have been managing credit for a short time, don't open a lot of new accounts too rapidly.

Apply for and open new credit accounts only as needed.

Have credit cards -- but manage them responsibly.

Note that closing an account doesn't make it go away.

Credit.com
Make sure your credit reports are accurate.

Pinpoint what you need to improve.

Create a plan to improve your credit score.

Fix your late payments.

Build a strong credit age.

Clear up any collection accounts.

Don't let old mistakes unfairly haunt you.

Get a credit card.

Open a secured credit card.

Limit credit applications.

Adjust your credit utilization ratio to where you use money you have more than credit.

Debt.org
Review your credit report.

Set up payment reminders.

Pay more than once in a billing cycle.

Stay in contact with your creditors.

Apply for new credit sparingly.

Don't close unused credit card accounts.

Don't payoff "charged off" debts.

Pay down on "maxed out" credit cards first.

Diversify your accounts.

Take micro-loans.

See if you qualify for a 0% interest card.

Consider a debt consolidation plan.

NerdWallet
Fix errors on your credit reports.

Stay below your credit limit.

Deal with past-due bills.

The information given in these lists is advice from the top credit solution companies in the industry. It will help you raise your credit score and grow your business. The rest of what they have to say can be found below.

My FICO Credit.com Debt.org NerdWallet
My experience is in no way a guarantee that your credit score will jump by 200 points in six months. Results will vary. It is, however, indicative of the advantages of making payments and opening revolving lines of credit.

All photos in this article can be found on Pixabay