How to repair your credit and raise your credit score
5 Steps on how to repair your credit and improve your score.
Credit Repair can be done. With some effort and knowledge of your credit report you can find ways to get those negatives removed and positive added. Your credit report by law must be accurate and cannot contain items that are not accurate or items that are not yours.
Credit scoring is a very complicated equation that incorporates many different factors. These factors are tied together and wind up giving each individual a credit score between 300 to 850. Although there are many credit repair companies available to assist you in rebuilding your credit, below are three very simple steps every person can take to improve their credit score.
1. First thing to do is to obtain your credit report so you will know what is on the report. Then study the report and learn what is being reported and how it is being reported. 80% of all credit reports show errors. If you report does have errors you can dispute them and ask them to either fix the errors or remove the trade line from your reports. In this case you want to remove the negatives and fix the errors on any positives.
2. Learn how to dispute and what letters to send to the credit bureaus. You should always send any dispute by mail and not online because it gives you a paper trail of your dispute. Remember the purpose is to get negatives removed and then start adding positives.
3. Pay Your Bills on Time! - This may sound obvious, but to most people, this is the largest factor in destroying their credit- payment history amounts for 35% of your credit score. People blame their busy daily lives on missing the occasional payment, but it is far from worth it. Although many creditors do not report your delinquency to the credit bureaus until you are more than 30 days overdue, they can contractually raise your APR as high as 30%, and apply late payment fees monthly, typically in the amount of $35 a pop. If you weren’t having financial trouble before, adding hundreds and thousands of dollars in interest in fees will cause your minimum monthly payments to drastically increase.
4. Store Credit Cards - Although the idea of a 10% discount on your first purchase may sound enticing, don’t fall for it! The store makes money based on the fact that consumers will see the bill and realize they can make a lesser payment rather than paying the balance in full. Your initial store purchase of $100 can be spread out over months and years, while they tack on interest which causes your balance to often stay the same! If you read the fine print you’ll realize that most of the cards START at a 24.9% interest rate. Having many credit cards is destructive to your credit report, and looks as though you are in need of credit if you are constantly applying. While to you it seems like a simple 10% discount, to the credit bureaus, applying for all of the credit cards at stores you shop at looks like you are in need of credit and unable to pay cash. In stores, pay cash or use a low balance credit card if necessary, and feel confident that the 10% discount on that purchase IS NOT worth the damage it may cause to your credit score.
5. Keep Credit Balances at or below 30% of your Limit - Some people consolidate their debt, hoping that having only one credit card, even if it is maxed out, will look good on their credit report. In fact, it is the exact opposite. It is much more beneficial to your credit score to have that debt spread amongst several credit cards, staying under 30% of each cards limit. To the credit reporting bureaus, if you have smaller balances on several cards, are not near your credit limit on any of them, and manage them all, you look fiscally responsible. You are managing multiple accounts and not overspending. It looks as though you are comfortable financially and use credit wisely. If you have one credit card that is maxed out, with no other revolving accounts, it looks as though you are in a financial situation that is difficult to manage, you are spending beyond your means, and the risk of defaulting is much higher.
Credit is a very difficult thing to manage on your own, which is why there are many credit repair companies and counseling agencies available with more information that can be tailored to each specific individual to rebuild your credit.
Credit Repair Secrets have been revealed.
If you want start repairing your credit file and raising your score then click here to get started today!
By deleting errors on your credit file and adding positive open credit trade lines.
85% of all credit reports contain errors and you have the right by law to have them either corrected to show 100% accuracy or have them removed.