fix credit score online

Thomas Boston asked:


A bad credit score can affect so many different areas of a person’s life, and makes life far more difficult than if you had a good credit score. A bad credit score can lock you out of the best loans, best credit cards, best apartments, houses, and even jobs. Because of this, repairing a bad credit report is extremely important and should be taken on with all the strength and gusto that can be mustered.

The problem is that there is a lot of conflicting information out there about how to repair your credit score, and some of this information is just flat out wrong. Then you have the thousands of guys who want your money before offering any information at all, and outright scammers on top of that. The good news is that while there is no guarantee that every person in the world can upgrade their credit score ‘X’ number of points in ‘X’ amount of days, for most consumers with bad credit in the low to mid 500s or even worse, there are definite ways you can repair your damaged credit score quickly, and 120 points or more isn’t out of the question.

Step #1: Stabilize!

Some of you might already have done this step, but for those who haven’t this is critical. Don’t overpay all your credit card bills $20 a month when you have an old $150 bill sitting in collections. That doesn’t make any sense. The first part of quickly turning around your credit score 120 points or more is to stabilize your current situation.

This means every single bill needs to be paid on time every month. If you have bills that are 120 days or more overdue, pay them or work out a payment plan to avoid those from going to collections. If your bills are 90 days overdue, keep them from going 120. Same process with bills that are 30 and 60 days overdue, and especially for bills that are late, but haven’t hit that 30 day mark where most get reported.

Some credit bureaus have your history of on time (or not) payments account for up to a third of your entire credit score. Even if you’ve been bad about this, paying all your bills on time for even a few months after a long history of not can show immediate dividends for your credit score. On the other side, getting hit with one 30 day overdue mark can drop you 50 points or more in one hit.

Many other credit scores have the 30 day mark account for up to one third of your credit score, so do not let late bills hit this bench mark. Once you are stabilized so you are at least paying all of your bills on time, add an extra penny to credit card bills, car loans, mortgage loans, bank loans, or student loans.

This is my favorite trick for helping out the credit scores of really cash strapped consumers. Your credit score records if you pay on time and if you pay the minimum or pay more. You get more positive points on your credit score for paying more than the minimum, but most credit scores don’t differentiate between whether you pay $100 a month extra, or one penny a month extra. Those extra pennies can add a nice little boost to your credit score.

Step #2: Check Your Credit Reports and Clean Them Up!

Every consumer is entitled to one free credit report from each of the three major credit reporting bureaus per year. Order all three and take a close look at them. A conservative estimate says that over 30% of all credit reports will have errors of some type on them. You will want to remove all the incorrect information immediately, especially if you have a common name. It is not uncommon for someone else’s information to appear on your account

Have all incorrect information removed. For some people, this action alone could result in a 120 point jump if someone else’s negative information is on your account. Getting your credit reports to reflect on you specifically is the first step to fixing your credit score. There is a second part to this step, one that involves advice given by many credit repair “experts” who give the wrong advice (we’ll correct the myth here).

Many will give advice to challenge every negative item on your account. Unless you only have one or two black marks, do NOT do this! First of all, it will set off a red flag. If your requests get marked as frivolous, then not only will legitimate problem accounts not be removed, but they can prevent you from challenging in the future. This means if you have a negative account that hits the 7 year mark and should therefore be removed, but isn’t, you have no way to get that black mark removed even though by law that’s your right.

If there are one or two accounts you do question, do ask for evidence of these late charges. That’s the key. Don’t categorically deny that this is your debt, but ask for evidence. If the company doesn’t respond in a timely manner, the challenged mark is removed. But never challenge more than one or two accounts at one time unless there is an actual concern of identity theft.

Step #3: The Magic of 50%

One of the biggest factors of anybody’s credit score, and perhaps maybe the most underreported, is the “magic” of the 50% mark. A huge part of your credit score at any given time is amount of credit you’re actually using as opposed to your total credit available. So if you have $10,000 in total credit card limits, and are using $9,000 of that, then you’re using 90% of your credit, which is really bad.

That percentage is a huge factor in your credit score. Everything above 50% is considered poor (and gets worse the closer to your limit you get) while everything below 50% is considered good and improves your credit score. This is figured on BOTH an account by account basis, as well as total over all debt. So even if your overall debt is too high to quickly pay under 50%, you can still improve your credit score by paying enough off several small credit cards to knock them all below that seemingly magical 50% line.

Credit score wise, it’s better to pay $400 to three small credit cards and get them all below 50% than to pay $400 to a large credit card (say an $8,000 used out of 10k available). You then will get extra points on your credit score for those three small credit cards that are under the 50% line. Eventually you want to get all your debt under this line, and once you do the effect is immediately noticeable on your credit score.

Another way of accomplishing this if you don’t have a lot of money to ask for a higher credit limit from companies you have a good payment history with. If you’ve missed payments, they won’t agree, but if you have a good payment history, many will. You might owe $300 on a $500 credit card, but if your credit limit is bumped up to $800 then you’re already under 50%. Not only does this help your score on that card, but it adds to your total credit, meaning you’re filling up less of your total credit, as well.

Step #4: Not Falling for Myths and Using Common Sense

In the end, there is no trick for improving your credit score if you are going to keep charging and spending more and more. The other advice to keep in mind is to avoid these common credit score myths:

1. Closing an old credit card account helps you credit score. This is a myth. After paying off a credit card you want that account to stay open, especially for older cards since length of credit history is critical to your credit score. Pay off the card, but do not close the account.

2. A debt consolidation loan will help my credit score. Actually, in the beginning this will hurt your score not only because of the addition of a large new loan, but also because it indicates trouble with debt. In addition, many people will then use their credit cards, digging themselves into a hole yet again. Consolidation might help with paying off debt, but it does NOT improve your credit score the majority of the time.

3. Common sense: stop using credit cards. You can’t improve your credit score while constantly adding to your balance. It’s just not possible, and anyone saying otherwise is trying to scam you.

Follow these four steps, and you will be able to see a huge bounce in your credit score in a very short time, even up 120 points or more.



Judy

sphynxcats3 asked:


I have no judgement liens, but in 2000, I had several cc charge offs and some mortgage late payments, shouldnt these be off my credit report by now? I own my home free and clear, why cant I get credit due to a low score? How can I fix this? thanks
I have no credit cards, I have an account that is over 7 years old that was just assigned to an “outside” agency, although the original debt is over 7 years. and no late utility payments or anything…

Justin

philip_gp02a asked:


I’ve got a credit SCORE of 742 but somehow whenever I’ve been applying for things that need credit checks (such as credit cards, investments, etc.) I’ve been denied because i apparently have an “insufficient credit history”

Is there anyway i can fix this? Or at least improve my credit history?

Nicholas

*Mrs. Barberich since 11/02/08* asked:


Ok here’s the deal. I applied for 4 dif. store credit cards bc my mom said she would pay them to build my credit (yes I know not her responsibility, but she shouldn’t have said that if she wasn’t going to bc she knw I had no job). I was 19 at the time, now I’m almost 21. Anyway she never did pay them & now I have almost $2000 against my credit plus a student loan. A friend of mine told me that just paying them off wouldn’t help my credit any bc it would still show on my report that I was delinquent. She said that I should call them & make a deal that I will pay them off under the condition that they delete the listing from my report (thus making it appear I’ve never had anything on my report). Anyway, would they do that? Or is there a better way I could do it?? Any suggestions are appreciated. BTW my credit is so bad that my credit score is 494. and I’m not even 21 yet. Sad I know.
yeah. they’re really gonna garnish my wages. I have no wages LOL!

Lucille

Kelli Smith asked:


Student loans can help you develop and build your credit score. Employers may review consumer credit scores as part of their hiring process. You can optimize educational and career opportunities by building and maintaining a solid payment history.

A credit score indicates how consumers handle debt. Understanding how credit scoring works is useful for making decisions about student educational loans and other credit that can potentially impact your education and career goals. The Fair Isaac Corporation developed its credit scoring (also known as FICO scoring) system based on weighting five aspects of a consumer’s credit history to achieve a score between 300 and 850.

How is my FICO Score Computed?

35% = Payment history: This category includes payment information on retail accounts, auto loans, mortgages, revolving credit, installment debt, and student loans. Delinquencies, repossessions, bankruptcies, wage garnishments, and liens are included. Public filings such as legal judgments can also show up and negatively impact your score, even if paid. Negative items on your payment history can lower your credit score for 7 to 10 years!

30% = Amounts owed: This category includes how much you owe and the percentage of available credit used for revolving accounts. A good way to improve your credit score is to avoid running up large balances or using more than 30% of your available credit.

15% = Length of credit history. The average consumer has approximately 14 years of credit history, but this isn’t necessarily true for students or those who’ve recently started careers. Repaying student loans on time provides a solid foundation for establishing a good credit score.

10% = New credit: Credit scores reflect new credit activity. Opening too many accounts too quickly can drop your credit score. It’s important to understand the difference between opening new credit accounts and credit inquiries; for example, if a potential lender or employer makes an inquiry it impacts your credit score less than applying for several credit cards in a short period of time.

10% = Types of Credit Used: The types of credit you have influences your credit score. Financial expert Suze Orman categorizes student loans as “good debt,” like mortgages or auto loans, but advises against opening and carrying balances on multiple credit cards. College students may be tempted to use credit cards as a financial “bridge” until payday, but this can result in accumulating excessive debt.

Student Loans: The Gateway to Your Future

As the cost of undergraduate, graduate, and professional education continues to increase, students are taking advantage of low cost federal student loans. According to the Project on Student Debt and the College Board’s Center for Economic and Policy Research, approximately two-thirds of recent graduates carry student loan debt and over the past decade, student debt levels have more than doubled.

These figures suggest that many students start their careers with significant debt before they’ve had a chance to build a solid credit score. As public academic institutions continue to face budget cutbacks and tuition increases, students may have to rely more heavily on student loans and credit cards to get by; this can have negative consequences for students’ credit scores and may even delay or divert career plans.

Career Transitions and Your Credit Score

If you’re considering a mid-life career change, a good credit score can help you obtain financing for the transition to a new career. It’s important to weigh short and long term financial goals when considering taking on student loan debt. Consulting a financial advisor can help establish a plan to fund your career transition while protecting your credit score.

Consolidate Student Loans

Traditionally, the interest rates for federal student loans are low–between 5% and 7.22%. Students can include multiple student educational loans that have different or variable interest rates into one consolidation loan with a fixed interest rate and single payment. The interest rate for consolidation loans is based on a weighted average of the interest rates of the different loans included in the consolidation.

Federal student loan interest rates are adjusted on July 1 and, on July 1, 2008, are expected to decrease significantly. Consolidating student loans fixes your interest rate and can help you avoid late or missed payments caused by managing multiple student loans; you may want to wait until after this year’s interest rate adjustment, however, to make an informed decision whether or not to consolidate.

When Should I Consolidate My Student Loans?

Students often consolidate loans during the grace period immediately following graduation, but it’s also possible to consolidate while you’re still in school. This may get you a lower rate on your consolidation loan but be aware that some loan cancellation or other specific loan benefits could be lost if you consolidate before you graduate or during your grace period.

Understanding Student Loan Debt

Unfortunately, it can be tempting to borrow more than you need for educational expenses. And it’s easy to forget that unlike grants and scholarships, student loans must be repaid, which can cause financial problems and damage your credit before you even have a chance to establish a good credit history. Late payments and collection activity on student loans leads to low credit scores–especially if, like many students, you have a short or limited credit history. A low credit score can limit the availability of some student loans and other types of credit including mortgage loans. And borrowing more than you need may affect your plans long after you’ve graduated–a 2006 Money Magazine article describes how some college grads are delaying buying a home or starting a family while they repay large student loan balances.

The Connection between Your Credit Score and Career

A spotty credit history can not only make it hard for you to get approved for loans, it could even ruin your career plans. Low credit scores can limit access to business loans and prospective employers often conduct background checks that include verifying your credit score. When you interview for jobs you may be asked to sign an authorization that allows prospective employers to check your background. Employers in the financial and retail industries and professions such as accounting and law typically use background checks as part of the hiring process, and a low credit score is a valid reason to deny employment.

Careful use of student loans can provide for your education and help avoid unnecessary debt. Managing student loan debt through prompt repayment and possibly consolidation can help establish a good credit score. Your education and credit score can open doors to your new career, and later, help you get financing for expanding a business, starting a company, or investing for your future.



Cindy

askdiscovertruh asked:


My husband currently has a horrible credit score while I on the other hand have an Excellent credit score. At the moment I’m not too concerned with how his score will affect us because we are both in graduate school and not looking to buy a house. We’ve been making payment regularly and on time to try and fix his credit but it won’t increase that much. I read on the Wallstreet Journa this week that many people add their child as an authorized user and immediately their credit history with the card is transferred off to that person dramatically increasing their credit score…

But my question is, if I add him, will his history automatically be connected with mine???
How about if I add him as a joint applicant?
Would my history be transferred to his and will his history affect mine?

Sam

Michael Brazier asked:


You as a consumer have rights under the Fair Debt Reporting Act to dispute negative information contained in your credit report. You can dispute negative or falsified information on your credit report by writing a dispute letter to the credit bureau that contains the negative blemish. This can usually be done online as well, while youre reviewing your credit report. Free credit reports are available through sites like annualcreditreport.com and disputes are enabled through a simple click through feature per each entry on the report. Once a dispute letter has been mailed or submitted online the law then requires the credit reporting agencies to take action for the consumer by conducting an investigation of said issue.

With these easy to follow steps you can easily write an effective dispute letter to the credit bureau.

Obtain your credit report: You can obtain a free credit report once a year or if you have been recently declined credit. Annualcreditreport.com provides a truly free credit report that can accelerate the process of sending snail mail. I mean, it is 2009…Order a copy from all three major credit bureaus. Experian, Equifax, TransUnion.

Become Sherlock Holmes: Read through your report with a fine tooth comb…or a slow scrolling mouse…Look for falsified information that may indicate you have been a victim of identity theft. Check the history of revolving accounts for false details, negative statuses, and outdated remarks that may be eligible to be removed.

Specify the items in dispute. Be very specific as to what item youre referencing and as detailed as possible as to what the dispute involves. If you have to use snail mail, send a copy of the credit report along with your dispute, circling which mark is being referenced. Online users can take a screenshot of the online credit report.

Separate the masses: If youre disputing several items youll want to send the disputes individually. As tricky as credit can be you have to imagine the men behind the curtain arent over willing to make that extra effort and sift through pages of email gripes or a manila folder as thick as a bible pointing out mistakes their organization has posted. Make it easy on the credit bureau to review each dispute individually. This is more to your benefit than theirs, trust.

Play nice: CAPPING every word isnt going to come off as cordial. As upset as you may be that you have erroneous marks on youre credit its best not to express yourself as a demanding impatient tyrant. Make your dispute personal and professional. Be polite. They can –read- your smile, lol.

Just the facts maam: Were not writing novels here. These are dispute letters. A definitive, professional, polite, one to two liner dispute per item. You have your goal, stick to it and lay out the facts. Point out the errors and request corrections and confirmations.

This is America! Keep in mind that you have the right to dispute marks on your credit report. Credit bureaus are required to investigate your dispute and can take up to 30 days to research and reply with the outcome of the investigation.

Follow up: Upon completion, you will receive a letter or copy of your credit report that shows their findings from the review. Should you not receive a response after 30 days send another letter reminding them of their obligation to respond and satisfy your submitted dispute. If you do not receive a reply thereafter your next step is to contact the FTC and file a formal complaint against the credit bureau. In the few cases where it escalates to contacting the FTC the disputed items are usually removed immediately for negligence and lack of evidence to support the negative mark.

More Help: If youre credit report looks like gibberish a non-profit credit counseling agency will usually review your report with you for free over the phone, via email, or in person should the service be local. Contact our certified credit counselors at our BBB Rated A+ non-profit credit counseling agency for a free review of your credit report and more helpful information to get your credit back on track. We help people fix credit scores and reduce debt through free financial information and debt elimination programs. Get on the road to financial freedom with Freedom Debt Management, 800-905-1563.



Judy

Ryan asked:


Unfortunately, a lot of people don’t realize the importance of having and maintaining a good credit score until it is too late. It’s when they are turned down or a job, denied from renting an apartment, or when they can’t get an auto loan that they wish they had paid a little closer attention to the due dates on their bills.

For some people a bad credit score can actually mean not being able to get approved for a credit card or loan, while for others it could mean the difference in several thousand dollars from higher interest rates.

Luckily, it’s never too late to fix your credit score. There are several strategies you can use to make immediate improvements to your FICO score without the help of a paid professional. Here are the top 5 ways to raise credit score:

1. Know your available credit to debt ratio: One of the quickest ways to fix your credit score (or make it worse) is to improve your credit-to-debt ratio. For example, if you have a credit card with a $10,000 spending limit, and you have a balance of $5,000, you are using 50% of your available credit limit. Ideally you want to be around 25% or lower. There best way to solve that is to pay down your debt. If that’s not an option, there are some tricks you can use to improve that ratio.

2. Keep a credit history: One of the biggest mistakes people do when trying to fix their credit is closing all of their credit cards. This can actually have the reverse affect because creditors and lenders want to see that you have a history of borrowing money or using credit. If you are going to close some accounts, make sure it is the most recent accounts that you have and keep the old ones open indefinitely.

3. Don’t apply for too much new credit: If you keep applying for credit over and over, this raises some red flags and will hurt your credit score. Research has found that typically when someone is desperately trying to get approved for a loan or opening multiple accounts, they generally end up going on a spending spree and end up unable to pay back their debts.

4. Pay off revolving debt: Paying off your revolving debt, or credit cards, will help you get back on track. It will also help you lower your credit to debt ration and improve your credit history. All good things for your credit score.

5. Pay your bills on time: One of the very best things you can do to create a near perfect credit score is to pay your bills. Set up automatic bill pay so you never have to worry about being late again and being stuck with late fees.

Get your credit score.



Walter

Mark W asked:


I would like to sit with someone and have them review my credit reports and give me advice on how to improve my credit score. I went to a credit counseling place and they just wanted money. Would like to buy a home soon. Is there anywhere I can go ?

Patricia

Ryan asked:


If you know you are going to need an auto loan or mortgage soon, you are going to want to find out what your credit score is so you know what types of options you have. If you credit score is too low for a loan, there are multiple ways you can quickly fix your credit score in order to get the loan you need at the rate you want.

The first thing you want to do before shopping for a loan is to pull your credit report. Take a good look at it to find any discrepancies. Studies show that 1 in 5 credit reports have errors on it that hurt the borrower’s credit score, so look closely.

While the personal information on your credit report is important, chances are it doesn’t effect your credit score. Things such as a wrong apartment number or a misspelling of your previous employer are pretty much irrelevant. The correct spelling of your name and current address, however, is important. If this is incorrect, you could possibly have false information on your credit report . . . information that belongs to another person but has a similar name than yours.

Once you’ve double checked for accurate personal information, the most important thing that can quickly fix your credit score is any false information on delinquent accounts or late payments. Your payment history makes up about 35% of your credit score and has the biggest impact, so you want to make sure this is accurate.

Check to see if there are any credit cards or loans that don’t belong to you. If there are, and they are marked delinquent, you want to get that resolved immediately. Similarly, if you there are late payments posted for accounts that were never actually late, that should be addressed as soon as possible. These are errors that can quickly get resolved and will instantly increase your credit score when removed from your report.

If you find these errors, immediately notify the credit reporting agency. They are obligated by law to contact the lender/creditor and investigate the situation and respond within 90 days.

This will get you started, but there are several more things to look for and tricks to instantly improve your credit score.



Marjorie