One of the biggest advantages of online credit reports is the convenience of being able to look at it on your own computer in the comfort of your own home. It can be done in minutes and is obtained through a third party, such as through Equifax, Experian, or TransUnion or through a reporting agencies’ own website. It is easy to do, you simply enter your personal information and answer any questions they may ask about your past and the credit report is yours!
You will need to pay for reports from the three, third party companies and you will need a report from each for a complete credit history. These may cost about $9 per report. However, this is a small price to pay for the comfort of knowing that your finances are in order and that no one is attempting to use your personal details to open credit accounts. These reports may be sent by mail or can be obtained online. It is worth looking at these credit-monitoring companies websites since they may have trial offers where they offer you a free credit report. This would allow you to obtain your report and you can cancel your account with them before you need to make any payments.
You will also receive your FICO score with the report, along with some advice on how you can improve this score. FICO is named from Fair Isaac Corp., which is the company that invented the score. It is a three-digit number that encompasses your entire financial history. This score is based on information from the three, credit monitoring companies and includes all information from your payment history from loans or credit cards to bankruptcy filings that have been made. The lower the score the better your credit history and it is surprisingly important since many business that you would never imagine needing it, use it to find out about your financial status. Obviously lenders use the FICO score to assess you as a potential borrower. However, did you know that employers may access your score as well as landlords who may wish to see if you are likely not to pay your rent and if they need you to put down a larger deposit, or even insurance companies. These companies use the score to assess the risk you may be as a potential client and there fore set the policy prices accordingly.
As you can see, the FICO score is used by many different people who want an idea of your finances. It may not be entirely accurate, but it is most often used due to its ease of use, as most companies won’t want to read numerous credit reports of all the people that they deal with. It is therefore critical that you do everything you lower the score and keep it as low as possible. Many years of buying on your credit cards without having the money to pay off the account can leave you with a high number that will be held against you long after you have forgotten what you bought. But there are ways that you can improve your credit rating and therefore FICO score.
First of all, always dispute things that are not accurately depicted on the report. For example, if there is a record of late payments on a credit card account but you don’t think it is true contact the creditor and credit agency by post. They will have to investigate the matter and if the creditor does not get in touch within 14 days, the bad credit will be dropped from your report, instantly improving your score. Easy isn’t it! In fact, disputing any mistakes is the easiest and most direct way to lower your score.
Other ways your FICO score may be lowered include spreading the cost of your credit card debts especially with the increase in 0% on balance transfer deals that are available today. Also, close any accounts that you are not using.
Since your credit score has such a strong influence during your life, it is advisable that you obtain a report once a year so you can check for any mistakes and make sure that you are doing everything possible to improve your rating. This is the first step you can take to ensure that you have a solid financial future.
Still need more information? Then visit http://www.essentialcreditreports.com for more of my articles.
Tags: Bad Credit Repair, credit repair, Credit Repair Services, Credit Report Repair, free credit repairBad Credit Repair, credit repair, Credit Repair Services, Credit Report Repair, free credit repairShare This
1. Deleting Errors in 48 Hours
This is the absolute fastest way to correct errors on your credit
report and raise your credit score. However, it can only be done
through a mortgage company or a bank. If you apply for a home
loan and find errors on your credit report, request the loan
officer to conduct a Rapid Rescore. But don’t mistake it for the
credit clinic tactic of multiple dispute letters.
The Rapid Rescore strategy requires proper paperwork. You need
proof that the item is incorrect. It must come from the creditor
directly. For example, a letter stating the account is not your
account, a letter stating the account was paid satisfactorily,
a release of lien, a satisfaction of judgment, a bankruptcy
discharge, a letter for deletion of collection account or any
relevant evidence.
This is the same documentation a bank or mortgage company would
require for the credit accounts anyways. The difference is, now
you can improve your credit score and receive a lower interest
rate. The results are not guaranteed and will run you about $50
per account.
2. Deleting Negative Credit
This is the infamous area where you’ve heard of all the scams.
Credit repair clinics charge “an arm and a leg” and promise a
clean credit report. Sometimes even a new credit profile! People
spending hundreds, or even thousands, of dollars for something
they can do themselves.
Removing errors is simple. Deleting negative credit that is
accurate requires advanced methods. But that is not the scope
of this report. So I’ll focus on the deleting the negative
errors.
Credit report errors easily disappear by using a simple dispute
letter. If you have the paperwork proving the error as mentioned
above in Rapid Rescore, send copies of that along with the
dispute letter. This will make the credit bureau’s job easier and
you will get faster results.
If you don’t have the documentation to prove the error(s), send
the dispute letter anyway. According to federal law, the credit
bureau’s have a “reasonable time” to validate your claim. They
will contact the creditor for verification of your dispute. Then
the account will be reported accurately - or deleted. It has been
generally accepted the “reasonable time” to complete this task is
30 days.
If you’re not the do-it-yourself kind of person. Or don’t have
the time. You could hire someone who is very economical.
3. PiggyBack Someone’s Credit
This is a fast and great little credit score booster. But it
requires a very trusting relationship. Simply put, someone else
adds you to their credit account. For example, when applying for
a credit card, you may have seen the section to add a card holder.
If your trusting person adds you, their payment history is now
reported on your credit report too. If they have perfect credit,
now you have a perfect account.
To make this more effective, use an aged account. Imagine if your
trusted person has a 10 year old credit card account with a
perfect payment history and a balance of only 50% of the credit
limit. Wouldn’t you love to have this on your credit report? The
easy part is your trusted person just calls the credit card
company and requests a form to add a cardholder. Once completed
and activated, their entire account history and future is now
firmly planted on your account. Imagine if you secured 3-5 of
these accounts - especially installment accounts. Your credit
score could sky-rocket!
The challenging part? Finding the trusted person. Since you already
have a low credit score and bad credit, how eager will someone be
to make you a cardholder? Even your parents don’t want you to
damage their credit. But, no one says you need to possess the card!
In other words, your trusted person could add you as a card holder
and never give you the card or PIN or any information. Since the
bills and all account information is still mailed to the trusted
person’s address, you won’t know anything about the account. This
scenario could land you many trusted persons. And you still benefit
with a higher credit score.
4. Playing Round Robin
This strategy is one of the oldest credit building techniques
around. It used to be accomplished with secured savings accounts.
But now, it’s much easier with secured credit cards. In fact,
I’ve used this method myself.
Here’s how it works: Take ,000 (or what you can afford) and get
a secured credit card. Once received, get a cash advance of 70%
of your credit limit. Get a second secured credit card. Once
received, get a cash advance of 70% of your credit limit. Get a
third secured credit card. Once received, get a cash advance of
70% of your credit limit.
Open a new checking account with the final cash advance. Use this
account only for making payments on your three new credit cards.
If you make your payments on time every month, your credit score
will increase because you now have three new perfect payment
credit cards. (Initially, your credit score might drop a few
points due to the rapid, multiple accounts being opened. However,
be patient because within 4 months of no new accounts or any
delinquencies of any account, you will see your credit score
increase. Mine increased 60 points in 60 days!!)
5. Pay on Time
This one is quite obvious. But after 12.5 years in the mortgage
business, I discovered it still needs repeating. Your creditors
were gracious enough to loan you money. Now pay your damn bills!
If you don’t, your credit score decreases. EVEN IF ONLY 30 DAYS
LATE!
That’s right folks. For some reason people think, “I’m only a
few weeks late. What’s the big deal?” Well, for the loan company,
if you pay late but consistent, they make a lot more money with
late fees and more interest (if a simple interest loan). For you,
your credit score is damaged. If you think long-term and credit
score, I’m certain you would not have a cavalier attitude.
6. Pay Down Debts
This seems like an obvious method, doesn’t it? But it is not as
transparent as you might think. Remember, we’re playing with
high-level statistics and probabilities which evaluates and
forecasts trends in your behavior. Here’s what you do…
Never pay off your revolving debt in it’s entirety! Isn’t that a
surprise? Think about it. Your credit score is a reflection of
your ability to manage your credit. Paying off your debt is not
managing your debt. If you have a zero balance, how can you manage
it? You don’t. It no longer exists. And you cannot manage what
does not exist, right? Therefore, in terms of credit score, you
have demonstrated your ability to swiftly pay off accounts to
avoid managing them. Thus, slightly decreasing your credit score.
One exception, of course, is if you’re over extended to begin
with. Pay off what’s necessary to make your credit profile look
great. Then manage the remaining credit.
7. Don’t Close Accounts
Even if you pay off revolving debts, do not close the account.
The longer an account is open with no negative reports, the
better it reflects in your overall credit score. This is due to
the weighted-average in the credit score formula. Many credit
experts suggest a balance of 30% of your credit limit. That’s
ideal. But you can go as high as 70% and still maintain a
healthy credit score.
8. No New Credit
You must be vigilant in your credit behavior if you want the best
credit score. Therefore, do not get any new credit unless it is
absolutely necessary. Each time you apply for credit, an inquiry
is added to your report. This usually drops your credit score
slightly. When you have fresh credit, there is no track record
how you will manage (or pay) this account. Therefore, it’s a
higher risk which results in a minor drop in your credit score.
Remember, your credit score is about risk assessment.
Here’s what you do: obtain credit for your housing, transportation,
college or continued education and 3-5 credit cards. That’s really
all you need for personal credit. If you want more credit, request
a credit limit increase on your current cards rather than apply
for new ones.
9. Maintain A Mix of Credit Types
If you show you can handle different types of credit at the same
time, you are rewarded with a great credit score. In other words,
get installment loans like vehicle, personal loan or mortgage.
Get revolving credit like credit cards: Visa, Mastercard, Sears,
Sunoco Gas, Costco. By mixing it up, you demonstrate you can
manage your credit because you will have short term and long term
credit with a fixed payment. As well as a “variable” monthly
payment on your credit cards.
Keep these accounts open with a balance of 70% or less and paid
on time and you will witness your credit score climb to great
heights.
10. Don’t File Bankruptcy or Foreclosure
Here’s the most obvious advice: Don’t file for bankruptcy or
foreclosure. These stay on your credit report for 10 years and
always decrease your credit score. The older the bankruptcy or
foreclosure account becomes, coupled with re-built credit
history, the less of an impact they play on your credit score.
Contrary to popular beliefs, you can legally delete a bankruptcy
and foreclosure. It’s not easy. But it’s possible. See the
advanced methods for that solution.
To quickly rebuild your credit history after a bankruptcy or
foreclosure, use the Round Robin strategy above and get secured
credit cards. Now you can even get a car loan or mortgage right
after bankruptcy.
Jeffrey Cash
http://www.mrquickcash.com/
Tags: Bad Credit Repair, Credit Report RepairBad Credit Repair, Credit Report RepairShare This