Yesterday we ran through a quick overview of the problems in the subprime mortgage industry. The conclusion at the end of the post was that subprime borrowers are going to be in a pinch over the next few months. Subprime lenders are raising their minimum credit score limits, making it harder for borrowers with bad credit to refinance or get a loan.

It sounds like a good time to stop being a subprime consumer! Let&39;s talk about some steps you can take to boost your credit scores above 650:

1. Work on your credit card debt - Ideally, you want your total credit card debts to be around 10% of your total credit limits. That means only using $1,000 in credit if you have $10,000 in credit limits. You can improve this ratio by paying off your debts or by increasing your credit limits.
2. Pay your bills on time - Making late payments on your credit cards and loans has a huge negative impact on your credit scores. 30 and 60 day late payments are bad, but it is those 90 day late payments you really need to avoid like the plague. With the convenience of online banking these days, there is no excuse to have late payments.
   
3. Avoid applications for credit - If you are going to buy a home or refinance in the next 6 months, try not to apply for an auto loan, new credit card or other new credit. Wait until after you&39;ve received your mortgage loan to shop for new accounts.
4. Remove inaccurate negative records - Give your credit history a good scrubbing 3-6 months before a loan application. Look for negative records that are inaccurate, fraudulent or expired. If you find a problem, you can file a dispute with the credit bureaus to have it removed.
5. Don&39;t make any sudden moves - Many consumers act too quickly and ended up hurting their credit instead of improving it. If a broker tells you should close all your credit accounts or a neighbor tells you that checking your credit lowers your score, research their (in this case, terrible) advice before deciding if it will help your score.

Stop being a suprime borrower today! Consumers with scores in the low 600&39;s have an especially good chance of being able to improve their scores quickly.