Building a better credit score
Karen Rivedal/Wisconsin State Journal
11 October 2011

Programs to get out of excessive debt while building a good credit history and learning to budget money better are offered by local agencies including GreenPath Debt Solutions and the UW-Extension Financial Education Center.

Taking classes like this can be a good first step for people contemplating a home purchase, if it helps them learn how to raise their credit score, said Kate Nardi Sullivan, housing counselor at the Dane County Housing Authority.

"There's a method to the madness of how (the rating agencies) increase your credit score," Sullivan said. "The higher your score, the better off you are, and the better kind of (home loan) package you'll be able to get."

The steps to building a better score aren't always intuitive. For instance, you shouldn't suddenly cancel all your credit cards and pay for everything with cash. Lenders need to see a history of potential borrowers successfully paying off debt.

"That's the only way the bank knows you follow through on your financial commitments," Sullivan said.