Repair Credit Score

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Question: Are there any ways to "quick fix" your credit and raise your Credit Score?

Answer: Step One
Correct all inaccuracies on your Credit Report.

Go through your credit reports very carefully. Especially look for; Late payments, charge-offs, collections or other negative items that aren't yours, Accounts listed as "settled," "paid derogatory," "paid charge-off" or anything other than "current" or "paid as agreed" if you paid on time and in full, Accounts that are still listed as unpaid that were included in a bankruptcy, Negative items older than seven years (10 in the case of bankruptcy) that should have automatically fallen off your report (you must be careful with this last one, because sometimes scores actually go down when bad items fall off your report. It's a quirk in the FICO credit-scoring software, and the potential effect of eliminating old negative items is difficult to predict in advance). Also make sure you don’t have duplicate collection notices listed. For example; if you have an account that has gone to collections, the original creditor may list the debt, as well as the collection agency. Any duplicates must be removed!

2Step Two
Make sure that your proper credit lines are posted on your Credit Reports.

Often, in an effort to make you less desirable to their competitors, some creditors will not post your proper credit line. Showing less available credit can negatively impact your Credit Score. If you see this happening on your Credit Report, you have a right to complain and bring this to their attention. If you have bankruptcies that should be showing a zero balance…make sure they show a zero balance! Very often the creditor will not report a “bankruptcy charge-off” as a zero balance until it’s been disputed.

3Step Three
If you have any negative marks on your Credit Report, negotiate with the creditor/lender to remove it.

If you are a long time customer and it’s something simple like a one-time late payment, a creditor will often wipe it away to keep you as a loyal customer. If you have a serious negative mark (such as a long overdue bill that has gone to collections), always negotiate a payment in exchange for removal of the negative item. Always make sure you have this agreement with them in writing. Do not pay off a bill that has gone to collections unless the creditor agrees in writing that they will remove the derogatory item from your Credit Report. This is important; when speaking with the creditor or collection agency about a debt that has gone to collections, do not admit that the debt is yours. Admission of debt can restart the statute of limitations, and may enable the creditor to sue you. You are also less likely to be able to negotiate a letter of deletion if you admit that this debt is yours. Simply say “I’m calling about account number ________” instead of “I’m calling about my past due debt.”

4Step Four
Pay all credit cards and any revolving credit down to below 30% of the available credit line.

The scoring system wants to make sure you aren’t overextended, but at the same time, they want to see that you do indeed use your credit. 30% of the available credit line seems to be the magic “balance vs. credit line” ratio to have. For example; if you have a Credit Card with a $10,000 credit line, make sure that never more than $3000 (even if you pay your account off in full each month). If your balances are higher than 30% of the available credit line, pay them down. Here is another thing you can try; ask your long time creditors if they will raise your Credit Line without checking your FICO Score or your Credit Report. Tell them that you’re shopping for a house and you can’t afford to have any hits on your Credit Report. Many will not but some will.

5Step Five
Do not close your old credit card accounts.

Old established accounts show your history, and tell about your stability and paying habits. If you have old credit card accounts that you want to stop using, just cut up the cards or keep them in a drawer, but keep the accounts open.

6Step Six
Avoid applying for new credit.

Each time you apply for new credit, your Credit Report gets checked. New credit cards will not help your Credit Score and a credit account less than one year old may hurt your Credit Score. Use your cards and credit as little as possible until the next Credit Scoring.

7 Step Seven
Have at least three revolving credit lines and one active (or paid) installment loan listed on your Credit Report.

The scoring system wants to see that you maintain a variety of credit accounts. It also wants to see that you have 3 revolving credit lines. If you do not have three active credit cards, you might want to open some (but keep in mind that if you do, you will need to wait some time before rescoring). If you have poor credit and are not approved for a typical credit card, you might want to set up a “secured credit card” account. This means that you will have to make a deposit that is equal or more than your limit, which guarantees the bank that you will repay the loan. It’s an excellent way to establish credit. Examples of an installment loan would be a car loan, or it could be for furniture or a major appliance. In addition to the above, having a mortgage listed will bring your score even higher.

The Mortgage Messenger - Credit Score Quick Tips

Question: How do I raise my FICO Score by 40 points the quickest way ?

Hi, my Credit Report is really good, but here is what happened. I got really sick several years back and ran up debt. My parents worked with a lawyer to settle them and pay less but close the account. Most of these will disappear in the next 9 months, but I only need 40 points to get to standard. I have started working on fixing anything I can and have brought it up 30 points in one month, but what would you experts suggest I do to bring it up at least 40 more points soon. thanks
I have heard it helps to get a new good credit card and pay if off each month. I haven't used a credit card for 6 years, so they say to get one and show you are alive and can pay things off. they say this will up your FICO Score. I have found the best on is B of A and you send in $300 collateral and then you get a "special"visa card and if you pay on time for the first 6 months, then it goes on record as a "good credit person:< Any of you know if this is true ?

Answer: So you have already gone through your report and fixed any errors. I have a credit watch program so that I can make sure nothing is going on that would take me by surprise. I tell you what, I am amazed at how quickly it goes down and how slowly it rebuilds! I recently disputed a problem on mine, it was one of those cell phone things. My husband needed service on the rails and they couldn't provide even though they said they could. We had to cancel and go to another company. We were told that since they were the problem that we wouldn't have to pay disconnect charges. Life went on for a year....then suddenly...WHAM....we get a call out of the blue! It was a collection company wanting over $400 in disconnect charges!! We arranged to pay that comapny about $200 of it and then they would call it even, we gave them the payment information and it never cleared. When we called back they told us that the company had decided to pull our file and send it to another collection company. Apparently Alltell is really bad about doing this. So...we decided that we wouldn't pay....why would we? Thy put it on our credit despite our arrangement of payment so it honestly didn't hurt us to leave it alone because they waited so long through this process that they only had about 18 months of it being on our credit! Idiots!
I decided that I would dispute the charges (in Jan 2007) because I thought maybe I would catch a break and it would be removed....instead Alltell re-repored it and it instantly took my Credit Score down over 50 points!! I have just decided to stomach the thing and never do business with them again (ahemmmmm Alltell)....and it will come off next spring.
So....Wendy....to make a very long story come to an end......only dispute things that have a chance of coming off or you will actually have an adverse reaction with your score.
Other than that....time and doing the right thing are all that you can do. From everything I have heard, companies that claim to be able to repair your credit are a hoax.
Also make sure that you don't close out all of your credit cards (those with 0 balances) because my friend (an accountant) says that she has seen this have a huge impact on a score (a drop of over a 100 points). Don't ask me why because I am not credit savvy....just passing on the tip!

Fix Credit - Is there a "Quick Fix" for Credit Repair

Question: When your company is a Sole proprietorship, does your personal Credit Score affect getting a loan?

Answer: yes!!!

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