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How to Raise Your Credit Score

 “Having problems on how to raise your credit score? These tips will surely help. Check them out now!”

Tips on How to Raise Your Credit Score

If you’re like most people, the recession took a toll on your finances and probably your credit score. So how do you get it back to where it needs to be? While it usually takes seven years for any negatives marks to be removed from your credit report, there are a couple quick and simple ways to you can raise your credit score now. Here are a couple to keep in mind.

1. Keep paying things on time: The most important thing to remember is to keep your credit report clean from here on out. Pay your bills on time. Make sure you aren’t over your limit on any of your credit cards. Keep the balances on your credit cards low. Keeping your finances clean is the best way to raise your score.

2. Don’t cancel any of your credit cards: This may seem counterintuitive, but canceling credit cards actually lowers your credit score. Part of your credit score is based on how much credit you utilize (your credit utilization score), so the more credit you have available, the higher your credit score. If you cancel a credit card, you no longer have that credit available, which lowers your credit utilization score, which in turn lowers your credit score. Even if you’ve paid off a credit card, keep it open and gather up the extra points you get from having that extra line of credit. If you qualify, you can also apply for a new credit card to raise your credit utilization ratio, although don’t apply for more than one. Applying for too much credit at once can lower your score. Here is a good list of the best rewards credit cards that can help you save money and raise your credit score.

3. Open the lines of communication with your credit card lenders: If a bunch of credit card debt is keeping your credit score down, talk with your credit card lenders to see if you can strike a deal to pay off that debt. Many lenders are open to making deals with you, since all they are really after is the money you owe. Just remember, if you do make a deal with a lender, ask them how they will be reporting it to the credit bureaus. They have two options: “Paying as agreed,” which won’t hurt your credit score, or “Not paying as agreed,” which could bring your credit score down. Make sure they are reporting it as “paying as agreed” before you agree to any deal.

4. Sign up for a secured credit card: If your credit is so bad that you keep getting denied for a credit card or loan, try signing up for a secured credit card. Traditionally, you put down a “deposit” for a secured credit card that ends up being your credit limit, so it doesn’t matter how bad your credit is, secured credit cards are available for everyone. Just make sure to apply for a card that reports to all three credit bureaus, otherwise having the extra line of credit won’t affect your credit score.

5. Make sure there are no mistakes on your credit report: Over 42 million people in this country have errors on their credit report, and 10 million of those have errors that affect their credit score. Make sure you are regularly checking your credit report to make sure there are no mistakes and that you haven’t been a victim of identity theft. Fixing simple mistakes on your credit report can be a quick way to boost your score. Each of the different credit bureau has instructions on their web sites on how to fix an error, or you can hire a credit repair service to do the work for you (as well as try other methods to raise your credit score.) More at Simple Ways to Raise Your Credit Score

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How Do You Repair Credit?

Lots Of People Ask, “How Do You Repair Credit?” The Secret Answer Is That There Are 5 Methods You Can Use.

How Do You Repair Credit Intro

How do you repair credit? Although the credit bureaus would like to have you think otherwise, there is absolutely nothing illegal about disputing items on your credit report. In fact, it is your explicit right by law to do so under the Fair Credit Reporting Act.

What is illegal is stating something that is false, such as “It’s not my account,” if it actually is your account.

How Do You Repair Credit–The 5 Methods

There are five main methods, all of which are completely legal, that you can choose from to repair your credit.  Some are much better than others and some are much faster too.

1. Time.  By law some negative credit accounts are allowed to show on your credit report for up to 7 years and others are allowed to show for up to 10 years.  The important point is not that they have to be reported for that long, but that they can’t be reported for longer than that length of time.  So, if you’re not in a rush, and you don’t want to put in any effort or money whatsoever, then you can just wait a few years.

2. Following the credit bureaus’ instructions.  Another method is to go to each of the credit bureaus directly.  You can challenge your negative accounts that they are showing on your report and see if they’ll remove this hurtful information.  The problem is knowing what to say and how to say it, so that you aren’t guilty of fraud, and that you get the response you’re looking for.

3. Do it yourself credit repair.  There are many courses, manuals, programs, etc. that can show you how to repair credit yourself.  The quality and price varies, but usually for well under $100 you can learn how to repair credit yourself.  One drawback is that there’s a good bit to learn, terminology to understand, letters to write and paperwork to deal with.  Another problem is that you have to stick with it.  Each month you’ll have to write more letters and deal with more paperwork until you’ve gotten the results you want.  Are you dedicated enough to follow through for three months up to as much as a year?

4. Credit restoration software.  A different version of do it yourself credit repair, but with a software program that helps to produce the letters you’ll need.  You’ll still have to learn more about credit repair than you probably want to know and you’ll still have to have the self discipline to follow through each month, but its usually easier than plain do it yourself courses and they also run for $100 or less.

5. Credit repair companies.  The bad here is that it’s the most expensive option, about $50 per month.  The good part is that they do the work for you and they keep doing it each month until your negative items on your reports are gone.  You won’t have to learn all the details about how to fix your credit and you won’t have to figure out how to write the letters.  And you won’t have to be self disciplined enough to follow through each month with whatever tasks remain.

How Do You Repair Credit Conclusion

So, how do you repair credit?  From personal experience and observations of others, credit repair companies are the best choice for most people.

Many won’t be able to force themselves to read a manual, with or without the help of a software program, to learn how to properly and legally repair their credit.  Of those that do, most won’t be able to make themselves do the various tasks needed each month to keep the process going until they get the results they want.

When you consider that most all credit repair courses tell you to send each letter via certified mail and that the credit repair companies send these letters for you if you hire them to do it, then they really aren’t that much more expensive, if at all.

If you are very focused and genuinely interested in the details, then the best choice would be one of the software programs.

Otherwise, the answer to “How do you repair credit?” is that if you can handle about $50 per month, the best choice is a good credit repair company.