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Obtaining Credit Access Even If Your Have Low FICO Scores

Your FICO score (FICO is an anagram for Fair Isaac Corporation) is a score that is based on information received about you from any companies who have previously provided you with credit. It is basically the same as a credit score. This article aims to offer those people who have low FICO scores some free advice.
The first thing you should do is find out whether your credit score is actually considered low. The FICO scores range from 300 to 850 (a perfect score): anything under 700 is considered as needing improvement. This is easier to understand when you realise that the higher your score is, the lower your interest rates will be.
Free tip #1. Keep a close eye on your credit report. It is easy to obtain a free annual copy of your credit report by visiting annualcreditreport.com. Play it smart and order one from each of the three major credit bureaus (Experian, Transunion and Equifax), spacing them out every three months. That way, you will have a more regular update on your credit score. By keeping a watch on your credit report, you minimize the chances of mistakes or wrong information going unchecked and allow for any errors to be removed.
Free tip #2. Reduce most but not all of your credit balances. Your FICO score will definitely improve when you significantly reduce the balances on your credit cards and other debts. But here's another smart move: resist the temptation to pay off the entire balance. If you maintain a relatively small amount on your bills it will indicate to any possible lenders that you are responsible with your credit.
Free tip #3. A secured credit card can be a bonus, especially if your FICO score is too low to allow you to obtain a regular credit card. However, they come at a price, usually in the form of a cash deposit. An example is when you place $500 into the secured account, you can charge up to that amount. You may well ask, "What's the point? Why not just spend the cash?" The answer is clear enough - by using this line of credit you will be in effect raising your credit limit which in turn improves your credit rating. Be careful and look for one that has low fees.
Free tip #4. You may wish to obtain a sub-prime merchandise card as it may be the answer to your prayers in raising your credit limit. All this is is a card that is connected to a line of credit, allowing you to make purchases from a particular merchandiser and might as well allow you to earn credit card points. You place a deposit on your purchases with the remainder financed by the card without worrying on any high APR charges. The good news is that this new line of credit is reported to the bureaus, positively impacting upon your credit score.
Free tip #5. The "piggyback" method is particularly relevant to married women with low FICO scores but who have a husband with good credit. You are able to use your husband's credit to improve your own - hence the name. It is much quicker than building credit on your own. You must have your husband register you as an "authorized user" of his account. It is quite possible that his complete account history is posted on to your credit report. Don't think that this will create miracles though as it is possible that FICO will make changes to the way they view such "authorized users".
Taking advantage of these free tips could quite possibly see you on the way towards achieving your goal of better credit and a better way of life.

Article Source: http://articles.yournetguru.com

Learn more of what Caden Flynn has to share over at www.debtjerk.com. More knowledge, more power, more success when you better understand the subject of high APR vs low APR.

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