Find Out How Easy It Is To Improve Your Credit Score In 90 Days

April 12, 2011 by  Filed under: Credit 

Did you notice that when the economic crisis hit, acquiring loans, mortgages, and new credit cards were extremely difficult? Now that the crisis has ended, some lenders still demand impressive credit scores before approving your application. It’s not only essential to get high credit scores – it’s a must-have for each and everyone who wish to reap in more rewards in life.

In some cases, the 720 FICO credit score, which is the median between the 300-800 FICO score, is not enough to get the best loan, mortgage, insurance, and credit terms. In order to get the best interest rates and monthly installment plans, you have to get at least 740 score.

Before improving your credit score, you must remember that credit repair only happens if you are able to pay your debt. Otherwise, fixing your credit score will have to wait until you have enough income resources to pay all of your current debts. You can’t expect overnight results but in as little as 30-90 days you can see significant improvement on your credit score once you strictly abide by the following steps.

– Pay attention to your credit reports

You should know that your credit scores are entirely based on the credit reports submitted to the major credit bureaus – Equifax, Experian, and TransUnion. Because of this, you must request your free annual credit reports from each bureau and review them religiously. Check for serious errors that are negatively affecting your credit scores such as accounts that you do not own, late payments posted when you have paid on time, bankruptcy reports older than 10 years that were fully paid but are still reflected as due, and other negative information such as delayed payments that are older than 7 years.

All of these have a negative impact on your credit score and you must dispute these entries immediately for proper action of the concerned lenders who submitted them.

– Get a highly-recognized credit card

You should get an internationally-accepted credit card such as Visa, MasterCard, Discover and American Express to boost your credit score. However, if you are unable to qualify for an unsecured card, go for a secured one from an issuing bank. In order to get approved, you must make a deposit on an account with the bank and acquire your secured major credit card.

– Pay on time by applying for automatic payments scheme for each loan and card

If you are constantly busy with work and travels, it can be hard to keep track of your payment schedule and sometimes this will lead to delayed payments, a black mark on your credit report. To avoid this, you should arrange an automatic payment scheme using your bank accounts to immediately pay off your credit card balance and loan installments each month.

– Don’t let anything go into collections

If you have any disputes regarding your insurance, utilities, and other billing statements, you should not let any of these get escalated into a collections account. Once these have been turned over to collections, you will have a big black mark on your credit report thus rendering a major downfall for your credit score.

If you must dispute these, you should pay the balance and file a case against the company in a small claims court. But you must be careful about doing this action too and be 100% sure about your claims because the company might backfire and sue you instead, which leaves more negative black marks on your credit report.

– Distribute your debt

It would be better to have a small balance on each of your credit cards than to have a huge balance on a single card. In order to remedy this, you should use all of your cards and don’t concentrate all your transactions on a single low-interest card. By using more credit cards, your credit report will have more information, thus rendering more computation of your credit score.

Also, you should bring out your older cards more often because these are much more valued by the FICO credit scoring system. By using your old credit cards, your older credit history will be updated more often thus making a huge positive impact on your scores.

– Know your credit utilization

About 30% of your total credit score is based on your credit utilization ratio. Credit utilization is the percentage of your used credit against your available credit limit. Say for example you have $10,000 credit limit for one card and you charged a $9,000 amount on it. When the statement arrives at the end of the month and you paid for the entire amount, the information on your credit report would look like you have used 90% of your credit limit. Why? Because the lenders submit your last billing statement to the bureaus, not the balance after you paid the bill.

By reflecting 90% credit utilization, your credit scores will take this negatively. In order to avoid such dilemma and improve your score, you must pay for the balance even before the monthly billing statement arrives. If possible pay down all your debt on each card to at least 10%-30% of the credit limit mark. By having smaller credit utilization ratio, you will increase your credit score significantly faster.

– Say no to closing accounts and lower limits

Because of the recent economic crisis, credit card issuers are reducing credit card limits of their consumers and sometimes close the inactive accounts. Don’t let this happen to you because closed accounts and reduced credit limits mean that you’re not worthy of credit and this will hurt your credit score.

If your limit has been reduced, try to request that the credit card limit be reverted back by the issuer or better yet, request a higher credit limit. If the issuer won’t approve your request, transfer your balance to another account to get your credit utilization ratio to the recommended level of 10%-30%.

Do you want a 700+ Credit Score? Quite a few negative objects found on credit reports are disputable and can be completely erased legally. credit after bankruptcy and increase your scores 200 points. Click the following link for cost-free information and facts on tips on how to repair your credit promptly and legally. Obtain Out Much more collection accounts on credit report

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