Fix Credit Report – Repair Boost Score Ratings

Frances Hobsons asked:




Raising a credit score is perhaps not the easiest things to do. People tend to get desperate in a case when they see that their credibility is getting effected in the market. The loans which they had applied for has either got rejected or the rate at which they are offered is too high. Most of the people who want a loan for some purpose or the other want to take up measures which will help them in sorting the issue of taking credit from the open market.

Some of the strategies which will help the customer to increase the credit score are listed below.

The customer would need to start living off his pocket. This would mean that the customer needs to use credit as less as possible. More over the customer needs to use just 30% of the credit limit that has been allotted to him. The customer needs to save up and get a deposit with the bank. He should try to get a secured credit card for himself. It is easy to get a credit card once you have a deposit with the bank or a lending institution. The customer needs to be regular in his payments with the credit card that he takes. He needs to honor deadline and take care of the fact that it is paid back before the due date. The customer also needs to take care that he pays back any debt which is lying unpaid in his account. If the customer has been debating with himself if he should be paying a certain creditor,s due. It is best that he pay’s back and clears his dues because if he pays back it would immediately boost his credit score.These are some small steps the customer must take to build on his credit score which will help him in applying for a loan in future and get competitive interest rates.

Lois

trharvey36 asked:


I have printed my credit reports from the 3 credit agencies. There are many old medical bills showing on it. They range from $13 – $350. They are all from the same collection agency as they are all from the same creditor. After reading about debt validation – I am confused. #1 – Should I send a debt validation letter for each of these accounts, even though they were placed on my credit report in 2007? #2 – Should I do a pay and delete for the accounts under $100? #3 – What will it look like on my credit if I dispute the accounts with the credit reporting agencies and they do turn out to be valid? Will that look like I am trying to fraudulently dispute something? #4 – On my Experian report my name is misspelled 3 times, has the wrong middle initial 1 time, has my daughter’s Social Security number under “social security number variations” (she is 12 yrs old), and has 5 addresses that I never lived at – should I send a letter to Experian to correct these? I know these are some very detailed questions and that everyone’s situation is different. I live in Texas. Any help and clarification would be greatly appreciated.

Leon

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

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.