David Lee George asked:




You all know the advantages to having a good credit rating, and why you need one. Not only can you get approved for a car or home loan, you can also save hundreds of dollars a month with lower interest rates and finance charges. Along with that you are also able to save on deposits and insurance rates because they are directly influenced by your score. It may even surprise you to learn that many companies check your number when you apply for a job, and many land lords check it when you apply to rent a home or an apartment because they want to find out how financially responsible you are and if you have any previous lawsuits against you.

There are dozens of uses for your credit, but there are also a lot of ways to hurt it. The most common ways include; checking it too many times and missed payments. These are common because people are struggling to pay bills and they apply for financing a lot. Other ways to damage it will include; law suits, repossession, foreclosure, identity theft, bankruptcy and much more. If you suffer from any of these the process to fix them in which you pay your bills on time and watch what you try to borrow will work, but it can take months and even years to be effective and give you the result you want.

That is why many people have turned to credit repair to fix their score fast. Credit repair is great because it is so effective it can fix any score no matter the reason it was lowered, but it can also do it in a few weeks. The process is simple for everyone because it is handled for you, and it is very affordable.

Dean

Ian Hollander asked:




Let’s take a quick look at one of the most POPULAR questions being asked in 2008 amongst people of ALL financial types and stripes: “how to I fix bad credit FAST…?” The simple truth is, with the financial markets in a slide, the housing and mortgage crisis showing NO sign of letting up, there appears to be NO shortage of people struggling with credit problems, does there? Continue reading as we lay out a quick and easy explanation to those who are struggling with first time credit questions…and crisis! Read on..:-)

What Can I do About MY bad Credit?

You can do the very same thing people have been doing for YEARS! Challenge the information that is bringing your score down. If your credit problems are VERY recent (within the last 3-6 months) your best best is to wait a little bit longer before you start the credit repair process. (depending of course on your situation and immediate needs) But if you have multiple negative items on your report, and they date back 6 months or more, the best time to start is right now!

What is the Process of Credit Repair Like?

Simple! You look at your report. You check it for 100% accuracy. Things that are NOT accurate, are disputed. This means balances, dates of last payment, names, addresses, date of delinquency, etc – EVERYTHING that is derogatory, and is not 100% correct is challenged. Of course you need a game plan, and a bit of strategic wisdom ( you don’t just challenge EVERYTHING at once if you’ve got a mess for a credit score..:-) but overall, this is the foundation of credit repair as it’s currently practiced. (and is laid out by the FCRA and all of it’s amendments and interpretations)

Ronnie

Helen Hecker asked:




Of course you don’t want to make any late payments on your credit cards or loans and affect your credit report and score unless you absolutely have to, but what happens if you’re unable to avoid it? It all depends on whether you’re 30, 60 or 90 days past due. If it’s only one late payment you may be able to dispute it and get it removed from your credit report but if it’s more than one that may be difficult to do. And it depends on whether it’s currently past due or long term past due, and other factors.

Understanding how FICO credit scoring works for late payments will help you avoid late payments and understand which late payments will show up for the long term and which payments won’t.

Put simply, FICO credit scores are used by credit card companies, loan and mortgage companies, utility and insurance companies etc., to predict how reliable you’ll be as a customer and how much they can trust you make the payments.

If you’re 30 days late on a payment it will affect your credit score only when it’s reported to the credit bureau. The same applies to 60-day late payments. However these are considered short term and may not cause any lasting damage to your scores. If this happens over and over then this will not be the case. Also a one time late payment of 30-60 days may never be reported to the credit reporting agency. You can avoid a lot of worry by finding out if the creditor reports a currently 30 or 60-day late payment or not. Many do not.

If you’re 90 days late it’s another matter. This can damage your credit report and score for seven years, unless you can get it removed. If it was in error or you had some special circumstances and your credit history has been good then it is worth a try by writing a letter to the credit report company. The three main credit bureaus are Experian, Equifax and Trans Union.

Credit card companies and other creditors look at 90-day or 120-day late payments as a red flag. They can no longer trust you to make your payments on time so your credit score will go down. Their purpose is to determine whether you’ll be able to make your payments on time or at least before 90 days have passed. It doesn’t matter if the payment was for $25 or $1000, they will look at it the same way.

Also sometimes late payments may cause a rise in the interest rates on your credit cards.

If you can avoid making any late payments you’ll dramatically improve the scores on your credit report. And if you haven’t gotten your copy of your personal, annual, free credit report online yet then get one now. Study it and then find out how your current creditors look at late payments. Call them up and find out if they report a 30 or 60-day late payment to the credit reporting agency.

Best of all find some emergency ways to completely avoid making any late payments. Try making your payments online a few days early to avoid payments getting lost in the mail. If at all possible find things you can sell or do some small part-time work from home and try to make a small emergency fund.

Do anything you can to avoid making a late payment. But if it happens, make it as soon a possible so it doesn’t go into a 90-day problem. Ninety days is the point where it’ll be difficult to turn things around and seriously affect your credit report and score and future borrowing opportunities. It’s best to spend a little time learning about credit reports, how you can fix or repair your credit report and scores now and how you can raise your credit scores fast. You may be doing some things you had no idea would cause your scores to drop.

Micheal

Danny Fredricks asked:




In this article we are going to look at whether or not you can fix your credit by yourself. One of the biggest myths about restoring your credit is that it’s something that requires a professional hand or guidance to do – and it’s simply NOT true. Now, that doesn’t mean that someone who is more experienced or well informed about the process MIGHT be able to do a better job than you will on your first try, but it certainly shouldn’t keep ANYONE with a little bit of energy and ambition from getting the job done. Read on as we take a closer look below..:-)

Self Help Credit Repair – What is Involved?

Essentially, the steps to fix your OWN FICO score are no different than if you hired someone to handle it for you. You simply need to find, itemize and challenge ALL of the information on your report that is erroneous, outdated, obsolete or incomplete. The Fair Credit Report Act and all of it’s subsequent amendments and revisions give you TONS of rights as a consumer – the most important one being the right to challenge ANYTHING on your credit file you believe is incorrect!

The Advantages of Filing Your Own Disputes?

Obviously, it’s going to cost a lot less than hiring a pro..:-) You can save many hundreds, if not thousands of dollars by simply undertaking this process for yourself, rather than farming it out to a clinic or expensive attorney. Be forewarned though: You DO need to know what you’re doing…or you’ll find yourself saving a lot of money, but wasting a TON of time instead! I’ve fixed my own credit on several occasions, and can tell you first hand that the price of a little bit of education is FAR less than spinning your wheels for 6 months without easy improvements, only to find out you’ve overlooked the basics and dropped the ball to boot!

Joe

Justin Parr asked:




If you’re about to graduate–or if you’ve already finished college–chances are you’re paying off student loans. But what exactly happens with your loan debt now that you’ve entered the repayment phase? Will they impact your ability to obtain credit? And how do they affect your credit scores?

Let’s start from the beginning

When you left school, you enjoyed a grace period of six to nine months before you had to begin repaying your student loans. But the debt was there all along–sleeping like an 800-pound gorilla in the corner of the dorm room. Once the grace period was over, the gorilla woke up and is now impacting your credit–but is it positively or negatively?

One way to find out is to pull a copy of your credit report. There are three major credit reporting agencies, or credit bureaus–Experian, Equifax, and Trans Union–and you should get a copy of your credit report from each one. Keep in mind, though, that while institutions making student loans are required to report the date of disbursement, balance due, and current status of your loans to a credit bureau, they’re not currently required to report the information to all three, although many do.

If you’re repaying your student loans on time, then the gorilla is behaving nicely, and is actually helping you establish a good credit history. But if you’re seriously delinquent or in default on your loans, the gorilla will turn into a monster and wreak havoc on your credit history.

What’s your credit score?

Your credit report contains information about any credit you have, including credit cards, car loans, and student loans. The credit bureau (or any prospective creditor) may use this information to generate a credit score, which statistically compares information about you to the credit performance of a base sample of consumers with similar profiles. The higher your credit score, the more likely you are to be a good credit risk, and the better your chances of obtaining credit at a favorable interest rate.

Many different factors are used to determine your credit score. Some of these factors carry more weight than others. Significant weight is given to factors describing:

Your payment history, including whether you’ve paid your obligations on time, and how long any delinquencies have lasted Your outstanding debt, including the amounts you owe on your accounts, the different types of accounts you have (e.g., credit cards, installment loans), and how close your balances are to the account limits Your credit history, including how long you’ve had credit, how long specific accounts have been open, and how long it has been since you’ve used each account New credit, including how many inquires or applications for credit you’ve made, and how recently you’ve made them
Student loans and your credit score

Always make your student loan payments on time. Otherwise, your credit score will be negatively affected. To improve your credit score, it’s also important to make sure that any positive repayment history is correctly reported by all three credit bureaus, especially if your credit history is sparse. If you find that your student loans aren’t being reported correctly to all three major credit bureaus, ask your lender to do so.

But even when it’s there for all to see, a large student loan debt may impact a factor prospective creditors scrutinize closely: your debt-to-income ratio. A large student loan debt may especially hurt your chances of getting new credit if you’re in a low-paying job, and a prospective creditor feels your budget is stretched too thin to make room for the payments any new credit will require.

Moreover, if your principal balances haven’t changed much (and they don’t in the early years of loans with long repayment terms) or if they’re getting larger (because you’ve taken a forbearance on your student loans and the accruing interest is adding to your outstanding balance), it may look to a prospective lender like you’re not making much progress on paying down the debt you already have.

Getting the monkey off your back

Like many people, you may have put off buying a house or a car because you’re overburdened with student loan debt. So what can you do to improve your situation? Here are some suggestions to consider:

If you have several student loans, consider consolidating them through a student loan consolidation program. This won’t reduce your total debt, but a larger loan may offer a longer repayment term or a better interest rate. While you’ll pay more total interest over the course of a longer term, you’ll also lower your monthly payment, which in turn will lower your debt-to-income ratio. Ask your lender about a graduated repayment option. In this arrangement, the term of your student loan remains the same, but your payments are smaller in the beginning years and larger in the later years. Lowering your payments in the early years may improve your debt-to-income ratio, and larger payments later may not adversely affect you if your income increases as well. If you’re really strapped, explore extended or income-sensitive repayment options. Extended repayment options extend the term you have to repay your loans. Over the longer term, you’ll pay a greater amount of interest, but your monthly payments will be smaller, thus improving your debt-to-income ratio. Income-sensitive plans tie your monthly payment to your level of income; the lower your income, the lower your payment. This also may improve your debt-to-income ratio. If you’re in default on your student loans, do not ignore them–they aren’t going to go away. Student loans generally cannot be discharged even in bankruptcy. Ask your lender about loan rehabilitation programs; successful completion of such programs can remove default status notations on your credit reports.

Javier

Milos Pesic asked:




Learning how to raise your credit score quick can seem like an impossibility, but the truth is there are some things that can be done to achieve this. Whether you have no credit or bad credit, it is possible to raise your credit score quick, but don’t expect miracles.

Learning how to raise your credit score quick will depend a lot on what types of issues are cropping up. If it’s a case of no credit, learning how to raise your credit score quick will involve obtaining credit in the first place. If the score is low because of slow or no payments in the past, another strategy is involved in learning how to raise your credit score quick. Those with mistakes on their report must fix them.

Let’s address each situation on its own. You will find the tools necessary to learn how to raise your credit score quick vary based on the situation.

No credit

Learning how to raise your credit score quick in this case involves a need to obtain credit. Generally, it’s best to balance types of credit, but not to have too much of any given kind. Get a revolving line of credit and an installment load, if possible. Expect to pay higher rates, however. While the combination will help you learn how to raise your credit score quick, it will still take some time. Establishing good credit requires a track record, which can’t be done over night.

Bad credit

When bad credit is the issue, learning how to raise your credit score quick might actually be a little easier than it is for someone with no credit. Learning how to raise your credit score quick in this situation will involve finding the items on a credit report that can be addressed rapidly. Pay off bad debts with haste and also trying to pay down or pay off cards or accounts and close them if there are too many. While a little time and some money will be involved in this, the truth is if repair moves are made, it’s possible to learn how to repair your credit quick.

Bad reports

If in the process of learning how to raise your credit score quick yo9u find errors in your report, get them fixed. If there’s a false report or an error, disputing them should result in a better report almost instantly. If you need to learn how to raise your credit score quick, fixing problems will result in almost instant improvements.

Learning how to raise your credit score quick will depend on the situation at hand, but it can be done. While it’s not likely you’ll be able to go from a bottom of the rung score to the highest over night, improvements can be made almost instantly in some cases.

Norman

Jon Arnold asked:




The vast majority of consumers have an “ok” credit score. It is acceptable, but it is neither tremendously high nor tremendously low. It is not high enough where they could buy an aircraft carrier on their signature alone, but it is not bad enough where even 7-11 requires cash for a pack of gum.

This is not a bad situation to be in, if you find yourself within that majority, but with a bit of additional effort and knowledge, you can increase your credit score. What would that mean for you? Know that your credit score is being in a lot of different places today, and many more than you would think because it is not just for pure financial transactions anymore. Many car insurance companies are looking at an applicant’s credit score to determine what insurance rate to charge, where the insurance companies claim they have statistical evidence proving that people with lower credit scores file more claims. If you are looking for a new job, especially one in the higher ranks or upper management of a company, many employers are now using a candidate’s credit score as the deciding factor if all else is pretty much equal.

And of course with a higher credit score, you get the preferred loan rate when you are shopping for that new car, or a much better rate if you apply for a mortgage or go to refinance your existing mortgage, all of which can add up to hundreds and even thousands of dollars per year.

But keep in mind that raising your credit score does not happen overnight. Your credit score is a composite score based on your credit history, and a “history” or even a “trend” is not created overnight, but is seen as an established pattern that you follow.

It is probably no surprise to you that the single largest factor that will influence your credit score is your payment history. Do you pay your bills on time with at least the minimum payment each month? If you have not been doing this, now is a great time to start that trend, since this factor accounts for almost 35% of your overall credit score.

The second largest factor affecting your credit score is the total amount of all your accounts compared to your credit limit on those credit cards. If all your credit cards are near their credit limit or maxed out most of the time, this is definitely bad for your credit score. The standard rule of thumb is to keep your balance, if you carry a balance at all, to about 25-30% of your credit limit. This shows that you are using credit responsibly and will improve your credit score.

If you have old accounts that are paid off, some people say to close them and it will help your credit score. This is a myth. Those accounts, if you kept them in good standing, factor into your score and become a part of your credit history. Closing those accounts eliminates that part of your credit history which can actually lower your score.

There are many other factors that go into computing your credit score, but one of the things that you should do at least once or twice a year is get copies of your credit report from each of the three major credit reporting bureaus; Equifax, TransUnion and Experian. Studies show that the vast majority of consumers have errors in their credit reports, and these errors do not auto-correct, but remain there unless you dispute them. If you do not dispute an incorrect item that is negative, your credit score is going to be calculated lower than it should be.

Take the time to handle your credit responsibly and wisely, and keep an eye on your credit report to avoid errors and incorrect data creeping in there. Doing so only takes a bit of effort and can pay off in spades for you and your financial future.

Javier

Tim Gorman asked:




If you have been refused loans or credit recently and think you may have a low rating, then you may be wondering how to increase your credit score. The credit report companies use a variety of methods to determine what your credit score should be. When you know how they work out your credit score, this can give you a greater chance of being able to repair it. Although it may seem very difficult to raise your credit score, once you know how it is calculated, it is really just a matter of being careful and reliable in your financial dealings. Then the credit report companies will see you as being more reliable and give you a higher credit rating.

How to increase your credit score, is really just working out what the problems are, and why the credit report companies are giving you a low score and then doing something to fix it. About a third of your credit score is based on whether you make your payments on time. If you have had problems with this in the past, then the best way improve this is to make sure your payments for bills, credit cards and debt repayments are made on time, or early. This will let the credit report company know that you are more likely to make payments on time in the future and this will increase your score for this part of the credit report and accounts for about 35% of the total.

They will also look at the amount of debt you have as opposed to your income. Another area that you should look at is that you have no more than 30 to 60% of the credit on your credit cards in use. If necessary, you can spread the debts over several cards rather than keeping a large amount on one card. If you’re wondering how to increase your credit score then this is one of the easiest ways and accounts for around 30% of the credit score. The rest of the total is made up from smaller items such as, how long your credit history is, whether you have applied for too many new accounts and also the types of credit that you currently have.

If you need to know how to increase your credit score, then there are a few simple adjustments that you can make to increase it. First you need to check the accuracy of the reports, to make sure that they have not made any mistakes. You also need to make all your payments, whether for bills or credit, on time. You may need to reduce outstanding debts and it may be best not to take on any new credit. This will help you to improve your credit score and make it more likely for the providers of financial products to view you as a good and reliable customer.

Martin

Irena Bocheva asked:




No matter whether you are trying to fix severe credit blemishes or simply make your FICO better, fixing credit score is always a good idea. The growing importance of your credit goes beyond shopping. All types of creditors, landlords, insurers and employers are pulling your credit file in order to decide the fate of your application. In other words, having a good credit score in no longer a luxury. It’s a necessity.

Here are 3 indispensable factors in the fast credit repair process. If you are not using these factors, you are more than likely on the losing track.

1 Learn more about the credit system.

Knowledge is power and this holds especially true for the credit world. When it comes to credit repair, a lot of people feel overwhelmed and helpless. And the reason is not only the mounting debt and the harassing collection phone calls, but the lack of credit knowledge. Where should I start? Why is my score so low?Which negative account should I pay first? How to deal with credit card balances? The more you know about the inner workings of the credit system, the better equipped you will be to solve your credit problem. Do you know how is your FICO calculated? Do you know which are the most important factors in your credit formula? How to dispute and eventually delete credit items from your record? How to prolong the length of credit history? How to reach the perfect balance to limit ratio on your cards without having to pay off the balances? Educate yourself on how the system works and you are on your way to credit success.

2 Learn more about the loopholes in the credit world.

The credit world is far from perfect-there are many loopholes and shortcuts in it. Knowing more about these loopholes will get you faster to the “good” side of the credit scale. For example, let’s say you have a collection account that is 2 years old. The law lets you dispute the item with the original creditor (the so called 623 Dispute). Most companies keep files of their customers for 13-18 months. The reason is simple-keeping a large database updated or transferring data from one system to another (in case of acquisition between companies) is very expensive. There are only a few original creditors who keep decent records. In this case you can dispute a listing within the account (wrong balance, wrong credit limit, did not pay late this month, wrong account number etc). If the original collectors are unable to find documentation and prove you wrong, they are required by law to remove the negative account completely. And that’s exactly what you are aiming for…

3 Create a plan of action tailored to your specific situation.

Different credit reports require different strategies. What works with collection agencies might not work with credit bureaus (and vice versa). The same holds true for the negative items in your credit record. Make a list of the most detrimental accounts in your report (bankruptcies, foreclosures,legal judgments, repossessions, loan defaults, collections, late payments, credit inquiries etc) and choose a specific strategy for each of this accounts.

Fixing a credit score is not that hard. Knowledge about the credit system and the little known secrets in it will let you achieve better credit faster than you thought possible.

Suzanne

Nathalie Fiset asked:




Probably one of the most insane situations a person can get into is when all his finances are out of control and there is nothing but complete mayhem. When your credit history is at its all time low and even the most strict methods of monetary discipline seem to fail, then there is nowhere else to run to but your your lawyer; yes, because he’s the only one that can legally fix your credit history.

It is tedious to do things on your own and there is even a greater tendency to create errors whenever knowledge on the aspect of credit history is involved. And having errors is, frankly, the last thing that you should have when it is legally fixing your credit score that is being discussed. There are numerous legal firms who can help fix the damage you have incurred on your credit history.

Most of these legal agencies have a pool of attorneys and credit experts that will analyze your problem. Most of them have been trained in the areas of finance and credit. These people do know what to do and they immediately act upon the problems that caused your low credit reputation, in a legal manner.

You have several options in fixing your bad credit score legally. The first choice is to hire an attorney who can look into your financial issues and help solve them to improve your credit history; or you can just wait for about 7-10 years and your bad credit history will clear itself naturally. The 7-10 years will erase any negative information on your credit score. But are you willing to wait that long when you can legally do something about it now?

The first move that credit repair firms often do is to check the accuracy of all the data in your credit history. If there is any erroneous information that has been included in the report, your lawyer should be able to legally dispute it right away. First, they send a written challenge to the bureau who will have 30 days in which to reply. In case it takes more than 30 days, the dispute is then considered valid and it can be deleted from your credit history immediately.

Together with your lawyer, know the credit repair laws. Aside from errors on your credit history, both of you could dispute any old information.

What is old information? This is any information regarding your credit that is older than 7 years or regarding bankruptcy that is over 10 years. Always remember that old information should no longer be seen on your credit report.

Another instance that you should start seeking legal assistance is when your requests for credit are continuously being turned down due to your race, sexual preference, religion, gender, or even age. It is against the law to turn down credit using these factors as reasons for denial. There is legal help on these matters.

There is an ongoing method that promises credit repair but would only put you deeper into debt so avoid it. This is when a company advises that you do the so-called file segregation. When you engage into credit file segregation, all the vital information that you have, such as your phone numbers or mailing address, will be changed. You are, technically, acquiring a new identity because all the information that you had on your previous credit applications do not match the present information. This, in a way, erases the old bad credit.

In addition to acquiring a new address or phone numbers, legal experts could also ask you to get an EIN (Employer Identification Number). This practice comes with a word of caution, though. It is a legal offense to deliberately give out a different social security number or obtain an EIN when you are not entitled to do so. Do not ever enter into a transaction involving file-segregation! This is not the way to fix your bad credit legally.

Remember to veer away from agencies that offer to fix your credit history in 24 hours or just a few days for that matter. This is impossible. Remember to do bad credit fixing legally, it takes time to fix something that was damaged, whether tangible or intangible.

Karl