Improve Credit Score – Boost Fix Repair

Darin Sewell asked:




When you borrow money from a lending institution to purchase an item or finance a project you are charged an interest rate. The interest rate you receive is a direct reflection of your credit score and credit profile. Borrowers with perfect credit will obviously get the lowest rates and therefore have smaller payments. But what if you have less then ideal credit or just want to increase your credit score in 30 days? There are many inside tricks you can use to cheaply and effectively increase your credit score in 30 days.

The fastest method is to increase your credit score is to increase the credit limits on revolving credit accounts, this is easily done with a phone call to the creditor in most cases. With this method you are trying to increase your credit limit to a point where your current credit balance is now 45-50% of the balance. This tip alone can increase your score up to 50 points in 1 month

Another useful tip to increase your credit score is to be added as an authorized used on a friends or relatives credit card account. You want to make sure that the account you get added to is in good standing and has a high credit limit with a low balance.

Disputing old an false information on your credit report is a good way to increase your credit score and is very easy to do. If you have a copy of your credit report you can dispute falsely reported or negative accounts that are a few years old. This is easily done on the credit bureaus websites or by writing a dispute letter to the credit bureaus. If you are unsure how to go about this process there are credit repair companies that can do it for you. There are many self credit repair books and E-books available online as well.

These 3 tips when applied should increase your credit core in 30 days. However the most important thing you can do to maintain your increased credit score is to always pay your bills on time and never borrow more then you can pay back.

Sue

starrysmaster asked:


I got my credit report yesterday from Experian and decided to pay extra for the Vantagescore/Fico score, the page came back “were sorry we cant generate your Vantagescore because there are no credit accounts on file, Im 41 and have had accounts before this but none at this time, so is my credit score 000 or perfect when applying for a loan?

Roy

Bryan Steakley asked:




It is almost always possible, regardless of your current financial situation, to take certain steps to improve your credit score. In this article I’ll cover a simple three step formula for raising your credit score.

The first step is to procure copies of your most recent credit reports. The agents which maintain credit records — Equifax, Transunion, and Experian — are known as credit bureaus. Under United States’ law you are entitled to a copy of credit report for free upon request. You can request this report free of charge once every year.

The reports will probably not include reference to your credit, or FICO, score itself but will contain a history of the credit accounts you have opened. To obtain a copy of this report, I recommend that you visit your local google.com and enter the terms “free credit report.”

Once you have obtained a copy of each report, you need to move on to step two. Next you need to scour the report for any factual inaccuracies. It is surprising, and somewhat alarming the frequency with which errors appear on these reports.

A negative item on your credit report will negatively impact your credit score. If you come across any such marks that you believe are erroneous you need to contact the credit bureau in writing and inform them of the mistake. If you do not find any errors you may move on to step three.

In the third step, you’re need to request more credit — either from your existing creditors or open a new account or two that are free of annual fees. Now I am not recommending that you go out and make charges with the newly discovered credit. Instead, you will change the data in the formula which is used to ascertain your credit report. Part of the data that are run to produce this score are based on your ratio of debt-to-credit.

For example, if you only own one credit card that has, let’s say, a $1000, limit and you’re carrying, let’s say, $496 in debt, the debt-to-credit ratio would be about .5. We’re going to want to lower that. Let say that you open another four accounts and each grant you $1000 of credit. If you maintained a balance of $1 on each you’d effectively lower your ratio to .2.

Scott

Carrie Reeder asked:




When applying for a mortgage loan, your credit score plays a huge role. Thus, many people choose to establish a good credit history before applying for a mortgage. Having a low credit score will not necessarily prevent you from getting a mortgage. Likewise, it’s possible to get a mortgage with no credit history. Before applying for a no FICO score home loan, it is important to understand how these loans work, and how to qualify.

Purpose of Credit Scoring

Without credit reports and credit scoring, potential lenders would be unable to assess an applicant’s creditworthiness. Credit reports contain very detailed information about our credit history. For example, the length of credit history, number of credit accounts, outstanding balances, etc. Along with creditor information, reports also contain a three digit number. This is the FICO score. Credit scores range from 300 to 850. Higher scores obviously means better credit.

How Credit Scores Affect Mortgage Loan Approvals

Years ago, obtaining a mortgage loan with poor credit was rare. However, lenders have begun offering flexible programs, which make it possible for more families to qualify for home loans. Among these includes a variety of mortgage loans especially for people with bad credit.

Bad credit generally consists of several late payments, bankruptcies, foreclosures, collections, judgments, etc. All of these factors contribute to very low credit scores. Low credit scores equal higher interest rates, which will increase mortgage payments. Fortunately, there are loan programs in which FICO scores are not a primary factor.

What are No Credit Score Home Loans?

If you have bad credit or no credit history, you may qualify for a no credit score home loan. In many instances, homebuyers earn a sizeable income, in which they can afford to buy a home. However, because of past credit history, many will not qualify for a conventional home loan. Rather than wait until credit improves, these individuals may apply for loans without using credit scores.

Try using one of ABC Loan Guide’s
Recommended Poor Credit Mortgage Loan Companies.

Many mortgage lenders offer these sorts of loans. However, homebuyers must meet certain criteria. For example, most lenders will only finance 70% or 80% on a no credit score loan, thus the homebuyer must have a down payment of approximately 20% – 30%. Secondly, most lenders require full documentation on these loans. Thus, homebuyers needing a no doc or stated income loan may not qualify.

Eric

Hartley Pinn asked:




In Less Than 30 Days.

“What can you do to increase that set of three numbers on your credit report that can be so important with your financing?”

I came across this question as I was surfing discussion groups the other day. Check out my answer:

Dear Friend,

Here are 3 steps I used to take my credit score from 592 (horrible credit) to 762 (perfect credit) almost overnight. If you’re interested in improving your credit rating quickly, you’ll find this story helpful:

In 1995 I made a decision that would ruin my perfect credit history. I quit my salary job to become an insurance salesman. The job paid commission only. Within a few months I lost everything – house, car, credit rating and my self respect.

By the end of 1996 I was living with my mom, all my credit accounts were severely past due, and I was paying 22% interest on a broke-down green Geo Storm…I was a real loser.

Then, in 1997, I became a banker. I didn’t know it at the time, but this would turn out to be the break I needed to eliminate my credit problems forever.

During my seven years as a banker, I came across several legal and highly effective ways to improve my credit rating. As a result, I was able to increase my credit scores by an average of 170 points.

Here’s what I did:

Step #1: After spending hundreds of dollars on credit repair services that didn’t work, I found out how to get negative accounts removed on my own.

Basically, I wrote letters to the collection agencies requesting proof that the accounts were mine. 89% of the time they had no proof that the bad accounts belonged to me. So I was able to get them deleted from my credit file.

Step #2: I opened new accounts with high credit limits and kept the balances low.

I discovered that if you keep your available credit limits high and only use 10% to 30% of the credit you have available, your credit score will improve dramatically.

Step #3: Next, I added accounts with years of perfect payment history to my credit file. This step took my credit score from 647 to 762.

While you can certainly add seasoned accounts to your credit file for free, there are companies that claim they can do it for a fee.

The problem is, they charge between $2,000 and $2,500 per account. If you want a 700+ credit score you’ll need 3 to 4 of these accounts. That equates to a cost of $6,000 to $10,000.

(You can conduct a search on your favorite search engine for companies that offer this service.)

While there are several highly effective steps you can take to increase your credit scores by as much as 200 points, these are the main ones…And here’s the good news: Each step can be completed in less than 30 days.

Chris