Even though we are in the midst of a recession, there are some steps that you can take to improve your credit.

It may be more difficult to convince banks and credit card companies to lend money right now, but at some point they will be more willing to extend credit, and you want to show them that you are creditworthy at that point.

Here are five solid tips for improving your credit, especially during a recession:

1. Pay your bills on time

This is a bit of a no-brainer, but it is worth mentioning. If you want to improve your credit rating, you need to demonstrate that you have a history of paying your bills on time. Make at least the minimum payment.

2. Apply for a secured credit card

A secured credit card is one where you give the credit card company a deposit as security for your account. Most people who get one start of with a small limit (in the hundreds of dollars), although there are secured credit card companies that will allow you to deposit larger amounts.

3. Avoid having and outstanding account go to collections

Your creditor probably doesn’t want your account to go to collections either, since they will only recover a relatively-small percentage of what you owe. The collection agency will keep the lion’s share of the amount for themselves, which is why they can be so aggressive about trying to collect money from you.

A better approach is to negotiate a payment schedule with your creditors directly. They may be willing to offer you a different payment schedule or lower your interest rate, especially if you have been a customer for some time or you are temporarily laid off. Don’t wait until your account is in arrears (90 days or more overdue) before you take the initiative to contact the company and try to work something out. You will be in a better bargaining position if you take action early on.

4. Don’t close older credit card accounts

Part of your credit rating is determined by the length of time you have had your accounts open. Paying off your credit cards is a good thing to do, whether we are in a recession or not, but leave the account open. Make a small purchase on the account once a month or so and pay it off in full when you get your statement to keep your account active.

5. Hang onto the job you have (if possible)

You want to demonstrate some stability by holding onto a job for some time, if at all possible. While it’s true that many people are being laid off from their jobs these days, when you are looking for a new one, try to find something that you are prepared to stick with for a year or two. Now is not the time to start job hopping, if you can possibly avoid it.

It is possible to improve your credit score, even in the midst of a recession. The 5 tips listed here will help you to reach that goal.

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The Visa Black Card will be limited to less than 1% of the US population, meaning that you will probably have to do over a million dollars in purchases per year, though the specific terms have not been released.

Here’s what we know about the Visa Black Card:

• Limited Membership (1% of U.S. Residents)
• 1% cash back on purchases or $1 = 1 points that can redeemed for travel anytime
• 24-Hour Concierge Service
• Exclusive Rewards Program
• Luxury Gifts
• Patent Pending Carbon Graphite
• Annual Fee $495

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