Irena Bocheva asked:




Are you trying to fix credit rating? No matter whether you have severe credit blemishes or simply want to improve credit score-raising credit is always a good idea. All types of creditors, employers, landlords and insurers are pulling your credit report when trying to evaluate application. The significance of your FICO makes having a good credit a simple necessity.

Here are 3 simple tips that will help you understand how fast credit repair works:

1 Knowledge is a powerful tool.

This holds especially true for the world of credit repair. Most of the 35 million Americans with less that perfect credit have tried fixing credit score the traditional way-financial discipline, careful budget planning, reduced spending and patience. They have, however, underestimated the significance of credit knowledge. Do you know the formula behind your credit score? Do you know which two factors account for more than 70 % of your final FICO? Do you know why current negative items have much bigger effect on your score than older items? Do you know how to remove mistakes from your report in 48 hours? How to use the 623 Dispute strategy and get original creditors to remove negative items from your report? How to get collection agencies to agree on very low settlement amount? How to use your legal rights under FCRA and FDCPA? You don’t have to reinvent the wheel in order to go back to the land of “perfect credit”. Simply educate yourself on the inner workings of the system and the various loopholes in it.

2 The dispute strategy.

Credit disputes are among the most popular strategies for fast credit success. Under the Fair Credit Reporting Act you are allowed to dispute any inaccurate, incomplete, ambiguous, questionable, biased or unverifiable information on your credit report. You are also allowed to dispute the same item on multiple levels-first with credit bureaus, then debt collectors and finally with original creditors (Dispute 623). If you are applying for a mortgage or auto loan, you can use the Rapid Rescore dispute strategy which brings results in 48 hours. It’s important to keep in mind that what works with collection bureaus might not work with debt collectors and original creditors. In other words-different dispute strategies work for different credit agencies.

3 The best credit card strategy.

The second most important factor in the credit score formula is the balance/limit ratio on your cards. The FICO algorithm takes into consideration each card individually as well as your overall balance/limit ratio. Racking up big balance (or worse-maxing out your cards) can hurt your score regardless of whether you pay your bill in full each month. The fastest way to raise your credit score using your credit cards is to bring your card balance to the healthy 30 %. In other words- you should be using approximately a third of your available credit line. There are 3 ways to do this-reduce balance, increase credit limit or transfer balances from maxed out cards to cards with low balances.

The answer to the question “how fix credit rating” is simple-learn more about the inner workings of the credit system and the various loopholes in it. There are many little known secrets and tricks that will take you to the land of ” perfect credit” in no time. Once you start thinking outside the credit box, you’ll be surprised to find how easy credit repair actually is.

Ella

Molly Wider asked:




Something that many individuals with bad credit have in common is that they do nothing about it. They accept that they have bad credit and live with the consequences. Many don’t realize that it is actually not that difficult to fix a credit score. It does take patience as it can take a year, or many years depending on how bad your score is, but it is possible. The key is taking action and being consistent. The following are steps that you can take to improve your credit rating.

- Request your credit report. In Canada this means contacting Equifax Canada and TransUnion Canada. In the US this means contacting Experian, TransUnion, and Equifax. Many people are unaware that a poor credit rating could be due to clerical errors. Typos and duplicate entries on a credit report are not uncommon. Once you have your reports, review them closely to ensure that there are no errors. If there are errors, dispute the charges with the reporting agency and you could be back to an acceptable credit rating sooner than you think.

If you have established that your credit report is accurate, and would like to improve it, the following should be your next steps:

- Pay all of your bills on time. If you can’t pay the bills on time, call the company(s) you will be late in paying and let them know when you will be paying. Some companies will note these calls in your customer file and it may prevent them from reporting a non-payment. This will not always work, but it’s worth a try.

- Don’t cut up your credit cards. Many think that if they don’t use credit for a while their score will be fixed and this is not the case. You must use credit to gain credit. Reduce the amount of available credit on each card and reduce the number of cards you carry. Don’t just cut up a card, but call to have the account closed. Call or write to your credit card companies and ask them to reduce your interest rate. Paying a yearly fee for a lower interest rate on a card on which you carry a balance may be well worth it in the end. Again, if at all possible, be sure to pay your bills on time.

- If you have no cards, try to obtain a secured loan, or a secured credit card to re-establish your credit. Asking a friend or family member to co-sign on a loan or credit card is another method, but beware, if you don’t pay this debt, you may lose a lot more than a good credit score, so this should be a last resort.

Fixing your credit score is not impossible, but it does take patience, persistence and commitment. Following these steps should help you to improve your credit rating.

Nicole