Whats The Best Way

well i know that my credit isnt good right now and with the way things are going with the ecconomy i dont think that i'll be able to get it any better.  so heres my question is what the best way to improve my credit so that when the ecconomy improves i'll be able to have a better credit?  i just want to thank you in advance for your reply.

I think that credit is a sceme to control the masses. We need to revolt people! Haha. Seriously, I like to pay for everything, cash in hand. If I don't have the money, I'm going to starve or go to the food pantry. I refuse to spend beyond my means, no matter how crappy my paycheck may currently be.

Phifer, I believe the best way to improve your credit would be to pay your bills regularly and on-time. A large portion of a person's credit score depends on their credit history. In fact, the first thing that any creditor would want to know is if their potential customer has had a very good habit of making payments on time. While late payments don't exactly enable your score to plummet immediately, having a very good track record is a good sign of increasing it.

There are at least five ways to improve your score:

1. Get a copy of your credit report from the three credit reporting bureaus and look for errors. If you find any, correct them.

2. Pay your bills on time. Especially if you think that you are going to need to take out a big loan soon. Missed payments on the last few months before the planned loan is going to lower your score.

3. Reduce the balances in your credit cards. This is relative to your credit limit. Keep it below 25%

4. Pay what you owe, rather than move it around. Avoid transferring balances as that would increase the ratio of your balance to your credit limit to 50%

5. If you are nearing your big loan date, avoid closing your unused credit card accounts--as that will again increase your balance to limit ratio.

Good points from both Moderators. I would also say that it is important to understand what the make-up of your credit score actually is. That way, you will know how to improve your score faster.

Payment History: 35%

Amounts Owed: 30%

Length of Credit: 15%

New Credit: 10%

Types of Credit: 10%

So, you want to make sure all of your monthly payments are paid on time. You want to try and reduce the amount you owe to improve your debt to income ratio. The longer you have had established credit, the higher that portion of your score will be (somewhat out of your control). Make sure you open up new lines of credit if you have not done so, and be sure to have a variety of credit lines. For example, having a car note, a personal loan and two credit cards is better than having four credit cards.