Consumer borrowing on auto loans and credit cards is increasing, which shows improved confidence in the economy's fortitude, according to Business Week. With a better lending environment, those with a bad credit history are able to boost their scores.
In the wake of the recession in late 2007, households cut back on charging goods and services to their credit cards, as well as applying for loans. The news source reports that this past December witnessed the first increase in consumer borrowing in more than two years, with the amount of auto loans rising by 2.8 percent.
While it may seem counterintuitive, charging money onto a credit card is a good way to improve credit scores. The main requirements are that the borrower pays at least the minimum amount specified on the credit card bill in a timely manner. Late payments are one of the factors that knock points off of a credit score.
Whether one pays $25 or $250 towards the bill each month, as long as it is paid by the due date, it reflects equally as positively on the credit score.
Securing a bad credit car loan and paying it off in full is another way for consumers to repair their score.