1. Open a Secured Card.

With a secured card, you put up a certain amount of cash into an account -- perhaps $500 or so -- and that becomes

your credit limit on the secured card. Apply for a single secured card; you'll get it just by forking over the cash as I

described above. Then simply make on-time payments for 6 to 12 months. This will definitely help you boost your

credit scores because it will generate some positive payment history for you. It will also help to offset somewhat the

past negative marks in your credit files. Before opening a secured credit card, just make sure the bank that issues the

card does, in fact, report to the credit bureaus.

2. Clean up Negative Information and Mistakes in Your Credit Reports.

Get your TransUnion, Equifax and Experian credit reports. You can get one of each report free each year from

http://www.AnnualCreditReport.com. Dispute any mistakes you find. Also, contact your previous creditors and

offer then a small lump sum payment to settle your debts, in exchange for them removing the negative information

on your credit reports. Only do this for recently delinquent accounts (i.e. those from the last two years). Also, only

give up cash payments to those creditors who agree, in writing, to delete black marks from your credit. If they

simply note the account as "Paid" but leave the old, negative information there, that won't help your credit.

3. Pay Your Existing Debts on Time.

Even if you have no regular card, it's likely that you have some existing credit accounts. Whether you have a

mortgage, an auto loan, student loans, or other debts that are being reported to the credit bureaus, be sure to pay all

those bills on time -- every month without fail. The single biggest determinant of your credit score is your payment

track record. That accounts for 35% of your credit score. So simply paying your bills in a timely fashion will

improve your credit rating over time.

By using these three techniques, you will see your credit scores improve in a year or less. BUT, if you fit into the

category of those adults who have a "thin" credit file or no credit file at all, you can establish good credit too.

To establish a credit history, and generate a FICO credit score, you need to have at least one credit account that is

reported to the credit bureaus, and that account must be open and tracked for at least six months. So start by

applying for a single national brand credit card, such as a Visa, MasterCard or Discover card, before you apply for

something major like a mortgage. If you can't get a regular card, open a secured credit card. Pay the secured card on

time, and after those payments are reported for six months, you'll meet the minimum requirements to get a FICO

credit score.