Question:

What steps can I take to rebuild low credit rating?

Answer:

Since credit score encompasses all your credit lines no matter how big or small, you should have your credit balance and limit reported to you by your credit card company.

A little trick you may use to rebuild low credit rating is not to exceed a balance over 30 percent of each credit limit. That is to say, no matter if you have a credit card with $1,000 or $10,000 limit, always try to keep the amount owed within 30 percent for each - either by paying up or by extending the credit limit. It may be possible that some credit companies will increase your credit limit without running a check on you.

It is not desirable that you transfer your balances to a single credit line, since it may hurt your balance to limit ratio. Take some advice - do not exceed your credit limit as this will affect terribly your credit score.

Also, the longer credit history you have the better. Since credit history makes up 15% of your credit score, it will be nice to have positive old credit. Thus, creating and maintaining several small credit lines with regular on time payments to establish positive credit history does a lot to improving your credit score.

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