Credit Repair: How To in 5 Minutes
Hi, welcome to CreditRepair.org, your guide
for improving your credit score. My name is Tiffany Rider and I’m a financial services
reporter who’s covered everything from the Wall Street meltdown to second generation
credit cards and many things in between. Whether you’re here because you’ve had some credit
problems or you’re just looking for effective strategies for improving your score, I think
you’ve come to the right place. To start, you should know your credit score.
It can be acquired for free at CreditKarma.com and is provided directly by TransUnion, one
of the three major credit bureaus.
This site is sponsored by advertisers, thereby
allowing you to access your score as often as you’d like at no cost. Your scores from
the two other major credit bureaus can be obtained from similar websites, some of which
provide free scores. For more information on those sites, visit the detailed article
“Free and Cheap Credit Reports and Scores” located at creditrepair.org. You’re probably going to want a credit score
of seven twenty or more — anything less than that may result in being rejected from
quality credit extensions and lower interest rates. You might also miss out on credit card
perks like premium rewards. Next, you should acquire your credit report.
A document that comprehensively details how your creditors have reported your financial
history. As mandated by the Fair and Accurate Credit
Transactions Act, you’re entitled to one free credit report per year. To obtain these
credit reports, visit AnnualCreditReport.com. There’s a chance that a credit report will
contain inaccurate information.
If this is the case, you’ll need to request that the
credit reporting company and the information provider review and verify the items in question,
which they usually investigate within 30 days of receiving the request. For more information
on disputes, see Creditrepair.org’s article, disputing credit report information.
Once you’ve made sure all the data on your report are accurate, you should take note
of any negative records and when they expire. Typically, negative records will last seven
years on your report, with some exceptions like bankruptcy, which could stay on your
report for ten years. For more information on the other exceptions, visit the article
“How Long Does the Bad Stuff Stay On Your Credit Report?” located at creditrepair.org.
If any negative records are still on your report that are more than seven years old
and don’t fall into one of the exceptions, you should dispute it.
Once you’re done with reviewing or correcting your credit report, you should become financially
responsible to prevent your score from slipping. To do so, try to implement the following tips:
One.
Don’t use too much of your allotted credit extension.
High outstanding debt could categorize you as high risk, which could bring your score
down. Most importantly, putting a self-imposed limit on your spending will probably deter
you from burying yourself in debt. Two. Try to pay the card off in full each
billing cycle. Doing so likely demonstrates fiscal responsibility
in the eyes of the creditors and saves you from paying unnecessary interest.
If you can’t
pay it in full, you should pay as much as you can. Making only minimum payments each
cycle could bring your score down. Three. Ask your creditor for an increase in
your total available credit. Part of your score is based on the amount
of usage of your total allotted extended credit. Accordingly, having available credit of ten
thousand dollars will help more than one thousand dollars. If your creditor won’t increase
it, consider applying for a card with another company, preferably one with a lower APR.
But you should not apply for more than one card at a time. That could actually hurt your
score. Four. Don’t cancel your old credit cards. Many people believe that by cancelling a card
they’re sparing themselves from the temptation of racking up debt again, but part of your
credit score is determined by the length of time your credit accounts have been open.
Closing a card with 10 years of positive reporting removes it from your credit report, which
could negatively affect your score and your ability to obtain other loans.
If you’re
tempted to use it, you should use it only for small purchases and pay it off in full
each month. If your card is inactive, your creditor may choose to cancel it, so make
sure you’re using it at least once a month to ensure it stays open. And five. Look into getting other forms of
credit extended to you. Your score is partially based on types of
credit that have been extended to you so consider looking into other forms of reported credit.
Department store cards or installment loans are a great way to possibly increase your
credit worthiness, provided you’re paying on them diligently!
If you follow these simple steps, you’ll likely be well on your way to building a solid
credit score. Much more information can be found at CreditRepair.org, so don’t hesitate
to check out the articles for in-depth analysis and tips on trying to improve your score.
This is Tiffany Rider, hoping you check out Creditrepair.org.
Thanks and Good Luck!
