How to Fix a Bad Credit Score
How to Fix a Bad Credit Score
By Alan Willis
There can sometimes be quite a lot of misunderstanding concerning the issue of how to fix a bad credit score. There really is a vast deluge of info out there on the Web regarding credit scores. With just a glance at the Internet it’s very easy to appreciate how it can get really confusing. Getting an excellent credit score doesn’t need to be a headache. There is enough good knowledge on hand pertaining to credit scores that will help you. The other great thing is that there’s really only a few entirely vital issues that you really must be familiar with. In this article I will quickly sum up some of the most important factors that you will need to contend with.
Recognizing that there is a problem is an exceptionally major feature to try to consider. This is really the very first step that you need to take.
Getting copies of your credit report is a significant area that you will have to give some thought to when you are investigating the subject of how to fix a bad credit score. There are 3 main credit bureaus. You need to get these to check that they are accurate and to assess the full extent of the situation properly.
Stopping your spending in its tracks is a vitally important element to attempt to keep in mind. Keep it right down to the absolute necessities for the moment.
Paying bills right on time is vital. This is actually the quickest way to raise your credit score in the short term.
As I articulated during the intro to this article, this has only been a quick analysis of all of the the most important aspects with regards to the matter of how to fix a bad credit score. There are really just a handful of other really crucial elements that you will have to understand properly.
To quickly find out about those other elements now please go to credit score advice now. For the best tips http://info.answertrain.com/fixyourcreditreport.html
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Remove Late Payment From Your Credit Report
April 4, 2009 by Rick · 4 Comments
Remove Late Payment From Your Credit Report
By Matt Douglas
Late payments are not created equal; a 30 or 60 day late pay will not damage your score much, and can often be removed. However a 90 day or 120 day will cause significant damage to your score.
This mark can be deleted by the lender as a way to keep your business and keep you happy. We suggest you contact the lender and ask them to delete it.
A phone call and a letter including the reason is the most effective method. Also be respectful and nice to them because they do not have to remove it.
A 90 or 120 day mark is much harder to erase. If you account is still open, we suggest you contact the lender.
Make sure your account is up to date before you ask them to remove the mark. Lenders will often make this decision based upon your payment history and the frequency of delinquency.
If they will not remove it then we suggest you file a dispute directly with the bureaus. This is done through a letter; you can create it or hire a service to do on your behalf.
The negative item will be on your report for a maximum of seven years. Your account will go to a collection agency after 180 days of delinquency.
A lender can remove it because they report monthly to the bureaus and can choose what to report. Thus if they do not report your late payment the next month then it will not be on your credit report.
You will find it very difficult to have the lender erase this mark if your account is not up to date. Additionally there is information that claims negative marks must stay for seven years.
This is not true; any item can be removed at any point in time, the maximum amount of time an item can remain is seven years. There are a few exceptions such as a bankruptcy. However the Fair Credit Reporting Act clearly says that the maximum amount of time is seven years. There is no minimum amount of time and can thus be removed at any time.
In sum if you can not negotiate removal with the lender you should dispute it. This is done through a letter written yourself or by hiring a service.
For a free credit repair letter used to dispute the bureaus visit us or you can get a free online credit repair consultation by calling 1-866-246-7311.
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If I Close My Credit Card Account Will it Raise My Credit Score?
April 3, 2009 by Rick · 3 Comments
If I Close My Credit Card Account Will it Raise My Credit Score?
By Helen Hecker
If you’re thinking about closing a credit card account that you aren’t using or have more than one, you may have wondered if it’s a good idea to do it. Some people think it will raise their credit score.
Here is why you don’t want to do it. When lenders are making a decision as to whether to lend you more money they will look at how much credit is available to you now – they call this the utilization ratio.
If you have 5 cards now and they each have a limit of $10,000 or so each and you owe about $6000, your rate would be 12%, which is good, from their viewpoint. If you were to close 4 of the credit card accounts then your utilization ratio would jump to 60% or so. This would be bad. Now you haven’t even used the cards but it looks like you have which means you might look like you’ve overextended yourself.
You want to keep this ratio at 50% or below. So take a look at your credit cards and if you really don’t want any of them don’t close the accounts. Take the cards you don’t want and cut them up. This way you keep the accounts open and are not using them to rack up more debt.
If you only have one card it would not be a good idea either, since you may need that credit card account for emergencies. Especially if you don’t have an emergency fund. Experts right now are advising to use your credit cards as necessary and make the minimum payment and conserve your cash for emergencies.
Your credit score or FICO score, report and history should not suffer if you continue to keep your credit cards. The lenders also look at how long you’ve had your cards and the longer you’ve had them the better it will be in terms of your credit score and history.
Credit cards, as much as they can be a problem, can often come in handy in emergencies and should be given some leeway for saving one from extreme hardship.
So closing a credit card account won’t raise your score but could lower it. Only do so if you have no other option. If you absolutely have to cancel one of your cards, then cancel the newest one first, of course, that has the shortest history to lessen the effect on your credit report.
For more tips, secrets, how to get a free credit report online instantly, fix your own credit and get help with credit counseling and credit disputes -get advice, avoid scams and get free help from a caring credit expert – go to http://www.FreeCreditReportInstantOnline.com
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