Repair Credit Score

Archive for August, 2008

Question: Want to raise my Credit Score to 750 from 690? need tips?

Okay, when i graduated college back in 2005 I screwed my credit up pretty bad, it was 485! I got a pretty good job and was able to pay off all my debts and my credit went up over 200 points in 3 1/2 years. Im went to buy a new Pathfinder but my interest rate was horrible, 12%! I really want to raise my score up in the next 6 months to 750 but its seem like my credit is stuck at 690, any tips because im tired of driving my 03 maxima, I love the car but I just want something new.

Answer: There is really no quick way to increase your score, but there are ways to improve it'

Your first step would be to reduce your outstanding credit balances as soon as you can. Pay down any credit cards to under 5% of your line of credit.

Don't close any accounts. Even closing ones that went into collections will not be removed

Don't apply for any credit, hard inquiries lower ones score unless you do your shopping for a new vehicle within a short period of time (FICO states 15 days) as the inquiries will be reported as a single one. FICO can tell when one is shopping for a car or mortgage.

Also, you would be better off to open an account with a credit union and get pre approved for a specific loan amount. Tell them you are purchasing a vehicle and that the loan would be secured by the vehicle. This gives you the advantage as if they approve a loan, you can shop around and tell the dealers you want a better price because you already have the funds available. Most credit unions charge a high rate of 7% - 12% for people with low scores but usualy stay within 7-8%.

I have provided a link in the source area to verify this information.

Credit Score Tips - FAST Credit Increase

Question: What defines a "low credit limit" on a Credit Report?

My credit reporting service says a major inhibitor to my Credit Score is low credit limit. I am considering opening a secured credit card to increase my credit limit, but am unsure of the amount to put aside.

Answer: It's just that--you have a history of very low credit limits on your revolving lines of credit. I would steer clear of opening another credit card to fix the problem. You are better off calling your current creditors and asking for higher credit limits. Sometimes you can push them by threatening to close your account because another company offered a higher limit (be realistic, if you have a $500 limit now, say you were offered a $1000 limit at another company). If they deny you--then continue to build more history with them. Opening another account only makes you look desperate on your Credit Report and can actually lower your score in some cases.

Credit Score Definition 101 - Lesson #1

Question: what Credit Score do you need in this economy?

I am getting ready to buy a car in the next couple months. I have a score of 650, and my wife has a score of 680 (we will both sign for the car). In this economy, is this still a good Credit Score?

Answer: Its pretty decent

8 Secrets To A 680 Credit Score!