Fix Credit Report – Repair Boost Score Ratings

Mike Singh asked:




Nowadays, virtually no prospective creditor will grant your request for credit without looking at your all-important credit score. Well, you cannot really blame them as credits and loans require that a certain degree of risk be assumed by the creditors and lenders, of which the credit report is an important tool to analyze said risk.

On your part, the best thing you can do is to boost your credit score as positively and as quickly as possible. The following ways are just some of the methods to do so.

Delete Errors within 48 Hours

You can actually increase your credit score and, hence, secure more favorable loan terms when you request for a Rapid Rescore from your loan officer. You will, of course, need documentary proof of your request for updating of your credit score, which will cost you around $50 although it must be emphasized that results are not at all guaranteed.

Needless to say, your request for Rapid Rescore is based on negative inaccuracies found in your credit report. Any and all accurate information stays on your credit report, be it of the positive or the negative kind.

Delete Negative Credit

Don’t fall for credit repair clinics that promise to clean your credit report, maybe even generate a new one for you. Actually, you can do the cleaning of inaccurate information from your credit report.

Just gather the documents used for your Rapid Rescore, attach copies of them to a dispute letter addressed to the credit reporting agencies of Experian, Equifax and TransUnion and wait for the results. Your dispute letter should clearly state your full name and address, the items you want to dispute and your explanations for them, and a request for correction/deletion of the items.

Ride on Someone Else’s Credit

This is probably the fastest credit booster although it does require a great deal of trust between two persons. Let’s say you are applying for a credit card, which you have had difficulty in securing from the banks because of your poor credit score. Well, you find a person with good credit rating who willingly gives consent to add you as a supplementary cardholder on their credit card.

As a result, the favorable credit history of that person will also be reflected on your credit report and voila! You have a better credit rating.

Of course, the process works both ways as your bad spending habits will also reflect on the other person. Thus, you had better prepare your persuasive skills in order to get the nod of approval you have been waiting for.

Be a Good Debtor

This last one is very obvious and yet still bears repeating for many people with bad credit. You will secure a favorable credit rating if and when you pay your creditors, your bills and your amortizations on time. Or better yet, even before the deadline set.

An exception will be in never completely paying off your revolving debts. After all, your credit report is a reflection of your ability to manage your debt and you cannot manage what is non-existent.

Indeed, it is possible to boost your credit score quickly. You just need to know the basics of the factors that affect it like bankruptcy, foreclosure, closing of old accounts, and mix of credit types and credit inquiries and you are good to go.

Harold

sstj02 asked:

This is how u reset u reset ur challenges so u can do them over and over and keep reseting them but u might get to the credit cap and thats not good cuz u could get banned

Sheila

Rachel S asked:


I apologize this is going to be a long one.
Past May I lost my job and was not able to get unemployment. I abandoned my apartment since I was very honest and informed my landlord I don’t think they ever filed anything against me, haven’t seen anything on my credit report yet. Anyways I was well off in my job, had 4 credit cards, a car loan and a loan for my furniture set. All of these had never had a late payment, my credit score was at 720 something. Obviously afterwards everything except my car loan is now at least 180 days overdue, all but 2 of the cards are in collections. About $11,000 in debt and I owe my dad $3,000. I owe my dad $3,000 because he drove out and helped me move back across country with all of my stuff since I had no place to live. Well, I took a phlebotomy class and after 3 months of applying the only place that was offering me a job was back in my original state so I packed my car up and I am living rent free with my long time boyfriend who I had moved away from… I hope that wasn’t confusing. So I’m out where I began, all of my furniture that I owe $3500 on is 1000 miles away. I’m only making $1200 a month. I have $7500 in credit card debt. I’m trying to pay off this debt and I’m wondering the best way to go about this while keeping my credit score in mind. Since May it has dropped down to 516. I’ve thought about filing for bankruptcy but I think that would be a bigger scar on my credit. Also I think it’s a moral issue, I made this debt and it’s my responsibility. I’ve thought about trading in or selling my car, but even if I did I’d still be paying on it since it would resell for so much less. I’ve also thought about selling my furniture but I don’t think I would get that much money from it. It’s all in my parents basement not getting any use and I’d love to have it out here but from what I’ve found it costs a lot of money to transport it across the country. So does anyone have any advice?
The credit cards were cut up as soon as I lost my job, all of my extra money is going towards the debt. I am not spending on anything extra at all.

Derek

Tony Banks asked:




There is a significant amount of money that can be saved when you boost a low score. The main reason is due to the interest rate savings you will receive from car, home and credit card lenders along the way.

Your interest rate is directly dependent on your scores so it will help dramatically in getting the best deal on your loan. Here are three ways you can boost your scores in 90 days or less when you need the increase in points ASAP.

Borrow A family Members Good Rating- This method is not available to everyone but one way to get an immediate boost is to add yourself onto a credit card of a family member that has an excellent history. Let’s say your dad has an American Express card that he has had for the past 10 years and maintained a good payment history over that time…If you are added on the account as an authorized user, his history over that timeframe will be reflected on your report and will in turn help boost your numbers.

Keep in mind that this now will only have a positive effect on your rating if you have the same address or last name. This method was abused in the past so it doesn’t work for any random person

Increase Your Available Ratios- This is another great way to get a bump in scores. What you want to do here is to either request an increase on any current credit cards you have or to pay down the balance on your card accounts. They both have the same effect of increasing your available credit ratios.

Dispute Negatives To Clean up Your Report- The last method you want to use to improve your rating is to dispute negatives such as charge-offs, late payments and other items that maybe lowering your scores. You are allowed to challenge any items on your file thanks to the Fair Reporting Act.

Carl

Sal Abdin asked:




One of the most important things that affects nearly every aspect of your life is your Credit Score or Credit Rating. This bit of personal information can play havoc with your life if you don’t look after it… and if your credit rating is bad or adverse, then you need to start fixing it right now or it could potentially ruin your life.

You see, your credit score is used by many different organisations to determine whether or not you get offered a product or a service. Employers use this to see how reliable you are. Lenders and loan companies will refer to your credit file before they offer you a loan or mortgage. Phone companies, utility companies, landlords all will use a credit rating to judge you first.

That’s right… they will judge you first… before they offer you anything! It’s so important to make sure you have a good credit rating.

Here Are Two More Tips To Legally Boost Your Credit Rating.

Tip 1: Don’t Assume That Any One Thing Will Boost Your Credit Score A Specific Amount

Many people believe that paying off a credit card bill or closing an unused loan account will single-handedly result in a better credit score, but it’s not really as clear cut as that. How much any one bit of action will affect your score is impossible to measure but it will depend on the agency calculating your score and on your current rating.

If you currently have a high rating then even small issues like a single missed payment can have an affect on your score. However, if you suffer with a low or poor credit score and want to repair it, don’t equate any one specific action with a specific amount of increase in your score.

Take as many credit repair actions as you can to boost your credit score permanently. Any credit repair action is good, no matter how small, because you’ll still have a better score than when you first started. Even with a small boost to your credit rating, you can qualify for better interest rates, for example.

Tip 2: Don’t Think That Having No Loans Or Debts Will Improve Your Credit File.

Many people mistakenly believe that avoiding all credit and that by owing no money and having no credit cards or loans guarantees a perfect credit file. This is not true! Lenders actually want to see how you handle credit and the only way to prove your abilities is to have credit and show that you can deal with it in a responsible way.

It’s much better to have a few credit accounts that are in good standing than to have no credit history at all. If you’ve got no credit accounts at all, think about opening a bank account at least and consider a low balance credit card to help boost your credit score.

Danny

Dave Czach asked:




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.