Being able to save and improve your credit can be a tricky deal. Lucky for us there are services that we can now take advantage of that will help us do both at the same time. One such company is called Selflender.com.
You can easily set up an account and choose how much money to "loan" yourself. It can be $500, $1000 or more. They call it a credit builder loan but as you make on time payments each month your money is put into a CD and will be paid out at the end of the loan period. They also report to the credit bureaus your account and on time payments thus slowly improving your credit by establishing a good payment history.
By the time you pay off your self loan, you get that money back and can use it by putting it in savings as an emergency fund or paying off one of your past due accounts that is reporting to your credit reports.
One more tip. When you use the money to pay off one of your past due accounts, make sure you offer a pay off for deletion off your credit. Its called a "pay to delete" action. Make sure you ask for a letter confirming this agreement so if it doesn't get deleted, you can present it to the credit bureau as proof. If you just pay your past due account off with no other action, it will be reported as paid off but as an account that went into collection. That can stay on your credit report for up to seven years.
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