Repair Credit Score

Archive for May, 2010

Question: My Credit Report is messed-up and I need some advice. I have been having trouble?

with my credit ever since I paid off all my debts and closed the accounts last year, including my mortage with my inheratence from my dad's passing. My Credit Score has not improved since I closed these accounts. In fact, my Credit Score is actually lower than it was before I started. I've had no negative credit problems - I was just tired of being in debt. What is happening? Please help me improve my credit. .

Answer: Closing accounts causes your score to go down, because you shorten the length of your credit history. Always try to keep accounts at a 0 balance and open, and never close them outright. Keep that in mind in the future and tell people you know, too few people know about this issue.

Forgot second part oops... to improve your score, you can try seeing if your bank will give you a small personal loan that you can pay off per month. To do this, open a new account and put $250 in it. Then ask the bank for a $250 personal loan, and tell them you are trying to rebuild your credit. Pay off the loan little by little every month, and when its paid off your credit will have improved slightly. Then, take out your $250 and try the whole thing again with another bank. The banks have nothing to lose because you will have the $250 sitting in your account with them as collateral. Good luck!

Loan Officers Secret Weapon #2 - Credit Score Facts