Posted by GuestPoster on July 7, 2010 under Credit Scores | 
It happens to more people than you think. You are out shopping and you do not have the cash but you know you are getting a decent paycheck next week. Therefore, what do you do? You tell yourself that you are going to charge it and that you will pay the bill as soon as you get your paycheck. Well, one thing leads to another and before you know it, you are in debt beyond the point of return. The good news is that it’s not too later, learing how to raise your credit score is just a series of small steps.
The first thing you have to do is stop using your credit cards. Do not make it any worse than it already is. If you do not have the money, do not buy it. Once you have told yourself that you are done using credit cards, get a copy of your FICO credit report (some people accidently use the misspelling FICA credit score). See what is on it and clean it up. If you owe any miscellaneous things, pay them and get them off of your credit report.
The next step is to get up to date on any delinquent accounts you might have. The payment history of your accounts makes up approximately 35% of your credit score. Paying everything on time will do wonders for your credit score. Once you start paying everything on time, do not apply for anymore credit. This could negatively affect your credit. The more you apply for credit and have your application denied, the more your credit score will be negatively affected.
Lastly, pay off what you can. Do what you can to make each and every payment and try to pay a little more than the minimum at the least. Once you have everything paid off, do not get yourself into that hole again. Life is better when you are not in debt. You do not have to worry about the phone calls or the harassing letters in the mail.
Posted by GuestPoster on February 25, 2010 under Credit Scores, Loans |
After you’ve filed for bankruptcy, getting any kind of credit is hopeless due to the impact on your credit report, where it sits for ten years. Eventually though, with some credit repair help, you will qualify for a bankruptcy loan if you take the right steps.
One basic thing to do is build your credit score back to a decent rating. After you climb into the mid-600′s you can qualify for things like car loans, or even mortgages. remember though that you may also have to wait two years, to demonstrate a longer time period of good credit repayment. Taking time to fix your credit after bankruptcy is key, you will see your score slowly climb. To start, you must pay all of your remaining credit on time, like clockwork. If you miss even one payment, you risk being set back to where you were before your bankruptcy. All remaining debt like student loans and loans you reaffirmed in bankruptcy will continue to appear on your credit report, so stay current.
After you are on time, you might try to apply for a secured credit card. Most banks today won’t be willing to give you a credit card, since they have tightened all of their requirements. There are some lenders though who provide secured credit cards. Usually you can find them searching online. This card will require you to open an account, using cash to secure the balance on your card. Your credit limit will be equal to the balance of your deposit, usually in the ballpark of $300 at first, but you can increase this limit with good payment history. These are very expensive cards though, high fees and interest. Yet you will have one tool to start fixing your credit.
By paying your debt on time, and not missing any payments, as well as getting some small credit lines if possible to show you can repay, you will soon see your credit score climb again. Although your credit will take time to improve, you’ll begin to qualify for mortgages with bad credit, or bad credit auto loans. It might take a year or two, but even the worth credit can always be repaired with time and patience.
Posted by GuestPoster on February 1, 2010 under Credit Scores |
If you have bad credit you may be confused by what you need to do to rectify the situation. You are not alone! Many people are confused by the credit repair process. It does not help that the banks and credit bureaus seem to try to keep everything surrounding credit a mystery! The good news is that credit restoration does not have to be difficult. Here are three things that you can do to improve your credit score!
Pay Down Debt
One of the most effective ways that you can improve your overall credit score is to pay off as much revolving debt as you can. Thirty percent of your total credit score comes from how you use your credit. Maxed out credit cards will cause a significant drop in your credit score. One of the best things that you can do for your credit score is to pay each credit card down below 25% of your total credit limit.
Dispute Negative Information
Cleaning up inaccurate and negative information is an important part of credit repair. What you need to do is get a current copy of your credit report. Review it very carefully and make a note of any major issues that need addressing. Then you will want to pick at least two things that you feel are impacting your credit score the most. You can use the reason codes on your report to get clues as to what you should focus on. Then, you will need to send dispute letters to each of the three credit bureaus. There is no guarantee that you can get accurate information removed, but it is certainly worth a try.
Become an Authorized User
For those who are lucky to have a parent or spouse with perfect credit, becoming an authorized user can be a great way to go. You should select the oldest account you can find that has a low balance.
By implementing these easy strategies, you can begin the process of bad credit report repair.