In this article, you will discover a few secrets that you can implement immediately to begin helping your credit score move upTIP #1- One of the fastest ways to see your scores go up is to pay down your credit balancesMost credit scores look at whether or not your credit is "maxed out" People are scored higher when they use a smaller percentage of their available creditIt is advised to never use more than 50 percent of your limit on any card In other words, it is better to have 4 credit cards with a limit of $5,000 on each card, and only owe a balance of $2,500 on each, than to have 2 credit cards "maxed out" at $5,000 a pieceTIP #2- Paying your bills on time is obviously going to have a huge impact on your score, because is accounts for the largest part of your scoreSo, Pay your bills on time! Even 6-12 months of good on-time payments, will have a positive impactOn the other hand, missing payments, or only paying the minimum payment due each month on your accounts, will typically lower your scoreTIP #3 - Take care of your collections "Un-paid" or "active" collections are worse than "paid" or "settled" collectionsIn many cases you should be able to negotiate a "pay-off settlement" at fraction of your total collection owed In addition, as you pay them off, you should always ask for all of your "bad" remarks to be removed from the report, or at least that they will report them as paid in fullTIP #4- Stop asking for more credit You need to be cautious of having too much recent credit activity on your report at any given timeWhen you are applying for more credit, whether you actually get the credit or not, your scores tend to slide down This is because lenders see it as "risky" when you are searching out more creditSo, just say no to credit card offers Don't accept the application at the retail store when they ask you to apply for their in store account Don't cosign for anyone Just sit stillTIP #5- Don't just use one card for all of your credit activitiesUsing a couple of cards casually is far better than only using one of your cards for everything and having another card which gets no use or activity at allFurthermore, make sure you have several types of accounts Having some diversity is good here Car loans, a mortgage payment, credit cards, or even installment plans show the lenders your ability to handle different "types" of accounts, equally as wellTIP #6- Add stability to your credit fileLongevity is the key You need to be consistent and you need to continue to use your credit and pay your bills responsiblyIt won't do you any good to pay off all your debts, settle all of your accounts, and just start paying cash for everything in lifeIf you do that, then the lenders won't have anything to base a score on and you will find yourself not-financable there tooYou NEED some positive and consistent activity on your report in order for it to be scored, and in order that your score will continue shooting upward as time goes onBONUS TIP - What about Fixing mistakes that might be on your report:This is a detailed topic that is covered in great depth in other reports I have authored, so by no means is this a thorough conversation here But lets touch on a couple of quick tips here and get you startedThere are specific procedures for you to get rid of mistakes on your credit report Under the "Fair Credit Reporting Act", a credit bureau MUST resolve your dispute or problem, typically within 30 days of receiving your noticeSTEP ONE - Examine your reports carefully You are looking for what is accurate and what is not accurateIf the negative information in your report is accurate, then obviously it belongs there It will remain there until time and good habits eventually erase the mistakes you have madeIn this case, while you can't delete the "bad-but-accurate" stuff, you can submit a 100-word statement that explains the reasons or the situation causing the "bad stuff" on your report This won't affect your score plus or minus, but it will let the lenders read your point of view as they look at your negative dataSTEP TWO - When you do find a mistake, you will need to fill out a form that should come with the report You are now going to "Dispute The Mistake"Clearly identify each mistake in your report and explain clearly why it's not accurately being reported Be sure to include your full name, your middle name, address, date of birth and Social Security number Make certain to identify whether you are a junior or senior (Jr/Sr)It is best to send photo copies of any documents, paperwork, or pictures which support or validate your caseDocument EVERYTHING!In fact, I would recommend that you have your mail sent with a "certified return receipt" for verification that the package has been delivered and receivedThe credit bureau MUST investigate any relevant dispute within 30 days of receiving your letter Any item that is not verified as accurate by a creditor is then removedBoosting your credit scores needs to be an essential part of your financial plan, so, be patient Seek out professional council if needed Stick with it and don't give up And ultimately, Prosper With Excellent Credit Scores
Bio - Dan Ostler is the owner of LeaseOptionHomeBuyingcom Dan is an author, speaker, business owner, investor, and one of the nations leading Lease Option Consultants He has been offering housing solutions and consulting advice to families with credit issues in all parts of the country for the past 8 years, and welcomes all visitors to his website for tons of **FREE** Information
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