Do you want to raise your credit score? Are you thinking about buying a new house, but fear being turned down by creditors or paying too much on high interest. If that's the case, don't worry. There are more than 35 million Americans with less than stellar credit who want to clean credit reports. The mainstream credit advisors support the "slow and steady wins the race" strategy. Time, dedication, financial discipline and careful budget planning will undoubtedly raise your score in the long run. However, there are far easier and faster ways to raise credit score. The only requirement-knowledge about the inner workings of the system and the various loopholes in it. Here are 3 simple steps that will help you understand how fast credit repair works.
1 Define point A and point B.
First things come first. It is vital to know where you stand on the credit scale (point A) and where you need to be(point B). For most creditors the three digit FICO score is the best predictor of your future bill paying performance. However, a credit score of 680 can qualify you for a favorable mortgage loan with one creditor and can be dismissed as unsatisfactory by another. Different lenders have different credit score expectations and that's why it's important to know what score will "open the gates" for you.
2 Possible routes between A and B.
Now that you know your score and the score that you need to obtain, you can come up with different credit repair strategies. Taking care of late payments, collection accounts and tax liens will undoubtedly raise your score. Maxed out credit cards can have damaging effect on your credit.That's why bringing the credit balance down to the healthy 30% percent will raise you FICO. You can also try prolonging your credit history by piggybacking someone else's credit(that is have someone with credit history longer than yours list you as a co-user on his/her credit cards). The problem with all these strategies is that most of us don't have the extra cash to pay all debt in full or find a trusted person who would give us a vote of confidence and let us piggyback his/her credit. And this is where the little known credit secrets come into play.
3 Shortcuts to the desired destination.
If you don't have the cash to pay off all of your debt, then you should focus on the delinquent account that have the most damaging effect on your score. The three digit FICO number breaks down into 5 factors. Of all those factors payment history accounts for more than 35 % of your score. That's why taking care of any late payments should bring an immediate increase in your score. The next thing you can do is get rid of you collection accounts. Simply paying off the collection will not bring the desired results. It will upgrade the status of the collection to "recent".The negative debt (albeit paid) will now have bigger impact on your credit score.
Instead you have to try negotiating with debt collectors and promise to pay ONLY if they remove the item from your credit report. A removed negative item is far more beneficial than paid off negative item. You have more leverage with collection agencies than you actually think. Exercising this leverage will raise you score in no time. Another interesting strategy is disputing out-of-date and incorrect info on your account. It is free of charge and the credit bureaus are required by law to perform a timely investigation. If you are right or if the credit bureau cannot verify the information, then they should remove the item from your report.
There are easier and faster ways to clean credit reports. The only requirement is knowledge about the inner workings of the credit system and the various loopholes in it. Once you start thinking outside the credit box, you will be surprised to find how easy credit repair actually is.
Author: Irena Bocheva
http://fix-credit-score.info
Do you really think that fixing credit takes a long time? Click on the link above and learn about the fastest ways to raise your credit score.
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