1. Deleting Errors in 48 Hours

This is the absolute fastest way to correct errors on your credit report and raise your credit score. However, it can only be done through a mortgage company or a bank. If you apply for a home loan and find errors on your credit report, request the loan officer to conduct a Rapid Rescore. But don’t mistake it for the credit clinic tactic of multiple dispute letters.

The Rapid Rescore strategy requires proper paperwork. You need proof that the item is incorrect. It must come from the creditor directly. For example, a letter stating the account is not your account, a letter stating the account was paid satisfactorily, a release of lien, a satisfaction of judgment, a bankruptcy discharge, a letter for deletion of collection account or any relevant evidence.

This is the same documentation a bank or mortgage company would require for the credit accounts anyways. The difference is, now you can improve your credit score and receive a lower interest rate. The results are not guaranteed and will run you about $50 per account.

2. Deleting Negative Credit

This is the infamous area where you’ve heard of all the scams. Credit repair clinics charge “an arm and a leg” and promise a clean credit report. Sometimes even a new credit profile! People spending hundreds, or even thousands, of dollars for something they can do themselves.

Removing errors is simple. Deleting negative credit that is accurate requires advanced methods. But that is not the scope of this report. So I’ll focus on the deleting the negative errors.

Credit report errors easily disappear by using a simple dispute letter. If you have the paperwork proving the error as mentioned above in Rapid Rescore, send copies of that along with the dispute letter. This will make the credit bureau’s job easier and you will get faster results.

If you don’t have the documentation to prove the error(s), send the dispute letter anyway. According to federal law, the credit bureau’s have a “reasonable time” to validate your claim. They will contact the creditor for verification of your dispute. Then the account will be reported accurately - or deleted. It has been generally accepted the “reasonable time” to complete this task is 30 days.

If you’re not the do-it-yourself kind of person. Or don’t have the time. You could hire someone who is very economical.

3. PiggyBack Someone’s Credit

This is a fast and great little credit score booster. But it requires a very trusting relationship. Simply put, someone else adds you to their credit account. For example, when applying for a credit card, you may have seen the section to add a card holder. If your trusting person adds you, their payment history is now reported on your credit report too. If they have perfect credit, now you have a perfect account.

To make this more effective, use an aged account. Imagine if your trusted person has a 10 year old credit card account with a perfect payment history and a balance of only 50% of the credit limit. Wouldn’t you love to have this on your credit report? The easy part is your trusted person just calls the credit card company and requests a form to add a cardholder. Once completed and activated, their entire account history and future is now firmly planted on your account. Imagine if you secured 3-5 of these accounts - especially installment accounts. Your credit score could sky-rocket!

The challenging part? Finding the trusted person. Since you already have a low credit score and bad credit, how eager will someone be to make you a cardholder? Even your parents don’t want you to damage their credit. But, no one says you need to possess the card! In other words, your trusted person could add you as a card holder and never give you the card or PIN or any information. Since the bills and all account information is still mailed to the trusted person’s address, you won’t know anything about the account. This scenario could land you many trusted persons. And you still benefit with a higher credit score.

4. Playing Round Robin

This strategy is one of the oldest credit building techniques around. It used to be accomplished with secured savings accounts. But now, it’s much easier with secured credit cards. In fact, I’ve used this method myself.

Here’s how it works: Take ,000 (or what you can afford) and get a secured credit card. Once received, get a cash advance of 70% of your credit limit. Get a second secured credit card. Once received, get a cash advance of 70% of your credit limit. Get a third secured credit card. Once received, get a cash advance of 70% of your credit limit.

Open a new checking account with the final cash advance. Use this account only for making payments on your three new credit cards. If you make your payments on time every month, your credit score will increase because you now have three new perfect payment credit cards. (Initially, your credit score might drop a few points due to the rapid, multiple accounts being opened. However, be patient because within 4 months of no new accounts or any delinquencies of any account, you will see your credit score increase. Mine increased 60 points in 60 days!!)

5. Pay on Time

This one is quite obvious. But after 12.5 years in the mortgage business, I discovered it still needs repeating. Your creditors were gracious enough to loan you money. Now pay your damn bills! If you don’t, your credit score decreases. EVEN IF ONLY 30 DAYS LATE!

That’s right folks. For some reason people think, “I’m only a few weeks late. What’s the big deal?” Well, for the loan company, if you pay late but consistent, they make a lot more money with late fees and more interest (if a simple interest loan). For you, your credit score is damaged. If you think long-term and credit score, I’m certain you would not have a cavalier attitude.

6. Pay Down Debts

This seems like an obvious method, doesn’t it? But it is not as transparent as you might think. Remember, we’re playing with high-level statistics and probabilities which evaluates and forecasts trends in your behavior. Here’s what you do…

Never pay off your revolving debt in it’s entirety! Isn’t that a surprise? Think about it. Your credit score is a reflection of your ability to manage your credit. Paying off your debt is not managing your debt. If you have a zero balance, how can you manage it? You don’t. It no longer exists. And you cannot manage what does not exist, right? Therefore, in terms of credit score, you have demonstrated your ability to swiftly pay off accounts to avoid managing them. Thus, slightly decreasing your credit score.

One exception, of course, is if you’re over extended to begin with. Pay off what’s necessary to make your credit profile look great. Then manage the remaining credit.

7. Don’t Close Accounts

Even if you pay off revolving debts, do not close the account. The longer an account is open with no negative reports, the better it reflects in your overall credit score. This is due to the weighted-average in the credit score formula. Many credit experts suggest a balance of 30% of your credit limit. That’s ideal. But you can go as high as 70% and still maintain a healthy credit score.

8. No New Credit

You must be vigilant in your credit behavior if you want the best credit score. Therefore, do not get any new credit unless it is absolutely necessary. Each time you apply for credit, an inquiry is added to your report. This usually drops your credit score slightly. When you have fresh credit, there is no track record how you will manage (or pay) this account. Therefore, it’s a higher risk which results in a minor drop in your credit score. Remember, your credit score is about risk assessment.

Here’s what you do: obtain credit for your housing, transportation, college or continued education and 3-5 credit cards. That’s really all you need for personal credit. If you want more credit, request a credit limit increase on your current cards rather than apply for new ones.

9. Maintain A Mix of Credit Types

If you show you can handle different types of credit at the same time, you are rewarded with a great credit score. In other words, get installment loans like vehicle, personal loan or mortgage. Get revolving credit like credit cards: Visa, Mastercard, Sears, Sunoco Gas, Costco. By mixing it up, you demonstrate you can manage your credit because you will have short term and long term credit with a fixed payment. As well as a “variable” monthly payment on your credit cards.

Keep these accounts open with a balance of 70% or less and paid on time and you will witness your credit score climb to great heights.

10. Don’t File Bankruptcy or Foreclosure

Here’s the most obvious advice: Don’t file for bankruptcy or foreclosure. These stay on your credit report for 10 years and always decrease your credit score. The older the bankruptcy or foreclosure account becomes, coupled with re-built credit history, the less of an impact they play on your credit score.

Contrary to popular beliefs, you can legally delete a bankruptcy and foreclosure. It’s not easy. But it’s possible. See the advanced methods for that solution.

To quickly rebuild your credit history after a bankruptcy or foreclosure, use the Round Robin strategy above and get secured credit cards. Now you can even get a car loan or mortgage right after bankruptcy.

Jeffrey Cash http://www.mrquickcash.com/

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Credit Score Online

Understand Your Credit

Trying to understand how credit works can be frustrating. Most people do not even know where to begin when trying to identify their personal credit rating. There are three major credit bureaus that report your credit status. These three credit bureaus are Equifax, Experian and TransUnion. All three also keep your FICA or credit score. This score can give you the best idea of how your credit ranks.

FICA…What Is It?

FICA scores range from 375 to 900. In general, the higher your credit score the better you will be able to obtain credit. A FICA score under 620 makes obtaining credit difficult. You should identify what your score is and if it isn’t a good number you should then work on making it better. Creditors use your FICA score to determine whether to give you credit and sometimes base interest rates on this score. It is a very important number to know.

Your FICA Score

To determine your credit score you should request your credit report from the three major credit bureaus. The new legislation passed that allows you one free credit report every twelve months does not require the credit bureau to give you your FICA score, so you will probably have to pay for these reports. The contact information for each bureau is as follows:

You should receive a copy of your personal credit report that includes your FICA score. Your FICA score is listed along with a comparison to the general population. This lets you know where you fall on the scale from excellent to poor. The credit bureau may include information as to why your score is not higher. Once you have your score you can then determine what you need to do to make it higher.

Raising Your Score

Some simple things can be done to help raise your FICA score. Paying your bills on time, keeping a small amount of unused credit available, keeping your debt low, and avoid inquires to your credit report can all help improve your credit score. Some things like, length of credit history, length of time on your job, and length of time at residence are things you can do nothing about, but that will also affect your FICA score. Practicing good credit methods will help you to obtain a better FICA score.

If you are worried about your personal credit you should really check out your FICA score. Then work to improve it. It may take time, but everyone has the ability to have good credit.

Gerald Washam is the owner of a website devoted to personal credit and credit repair issues. Learn the secrets to repairing, improving and maintaining your credit score. Secrets THEY don’t want you to know. Arm yourself with the knowledge you need before contacting the Credit Bureaus. Know what your rights are. Visit us here http://www.creditrepaird.com to find your way to personal credit freedom.

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FICO Credit Scoring

What does “Credit Score” mean? A measure of credit risk calculated from a credit report using a standardized formula. Factors that can damage a credit score include late payments, absence of credit references, and unfavorable credit card use. Lenders may use a credit score to determine whether to provide a loan and what rate to charge.

Do you know what your credit score is? You won’t know what you need to do to improve your credit score unless you first know what your credit score is. To find out, order a copy of your credit report. An amendment to the federal Fair Credit Reporting Act requires each of the major nationwide consumer reporting companies to provide you with a free copy of your credit reports, at your request, once every 12 months.

To order your free annual report from one or all the national consumer reporting companies, visit http://www.annualcreditreport.com , call toll-free 877-322-8228, or complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. You can print the form from ftc.gov/credit. Do not contact the three nationwide consumer reporting companies individually; they provide free annual credit reports only through http://www.annualcreditreport.com , 877-322-8228, and Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

Under federal law, you’re also entitled to a free report if a company takes adverse action against you, such as denying your application for credit, insurance or employment, and you request your report within 60 days of receiving notice of the action. The notice will give you the name, address, and phone number of the consumer reporting company that supplied the information about you. You’re also entitled to one free report a year if you’re unemployed and plan to look for a job within 60 days; you’re on welfare; or your report is inaccurate because of fraud. Otherwise, a consumer reporting company may charge you up to $9.50 for any other copies of your report.

To buy a copy of your report, contact:

Equifax: 800-685-1111; www.equifax.com

Experian: 888-EXPERIAN (888-397-3742); www.experian.com

TransUnion: 800-916-8800; www.transunion.com

For more information about credit card debt, identity theft, raising your credit score, obtaining credit cards, and more you can also go to http://creditcards.youngparentsmagazine.com

Under state law, consumers in Colorado, Georgia, Maine, Maryland, Massachusetts, New Jersey, and Vermont already have free access to their credit reports.

If you ask, only the last four digits of your Social Security number will appear on your credit reports.

What can I do to improve my Credit Score?

Pay your bills on time. This is the big number one! It’s always good to pay your bills on time and that keeps your credit score healthy. It is especially important that all of your recent bills have been paid on time if you intend to apply for new credit or a new loan. Recent late payments weigh against your credit score tremendously.

Don’t close or open credit card accounts near loan time. A good rule of thumb is do not open any credit accounts near a time when you will be applying for a loan. It can lower your credit score, especially if you do not have a proven track record. What’s more, a new account will lower the average age of your accounts, another factor in your FICO score. (FICO is an acronym for Fair Isaac Credit Organization) If you have several credit card accounts but are only using a few of them, you’ll raise your balance-to-limit ratio if you close the unused ones.

Pay off debt rather than moving debt to other places. The ratio of your credit card balance versus your credit limit is the key, so, closing out an account and transferring the balance someplace else simply means you increase that ratio, which is more than likely to lower your score.

Example: You owe a total of $1000 on four credit cards, each of which has a $1,000 limit. Your total credit limit is $4,000, of which your total balance ($1,000) accounts for 25 percent. If you transfer all your balances to two cards and cancel the other two, your total credit limit is reduced to $2,000, and your $1,000 balance now accounts for 50 percent of that limit.

Reduce your credit card balances. A heavily weighed factor in your FICO score is how much money you owe on your credit cards relative to your total credit limit. Generally, it’s good to keep your balances at or below 25 percent of your credit card limit, said Jeanne Kelly, founder of The Kelly Group in Brookfield, Conn., which helps clients improve their credit scores.

Examine your billing statements for errors. This is a commonly overlooked place to reduce debt. Companies do make mistakes. This includes examining all of your bills, not just your credit card bills. Jennifer Tarzian wrote more about this at http://www.youngparentsmagazine.com You’d be surprised at how much money you recover due to correcting common billing mistakes.

Correct blatant mistakes in your credit report. Your credit score is only as good as what shows up in your credit report. Review your reports from all three credit bureaus for accuracy once a year as well as several months before applying for a loan. Changing a mistake on your report - such as a payment that is wrongly labeled as late — can take 30 days to three months, sometimes longer. The way to obtain your credit score and report is listed above in this article.

Healthy credit is important in today’s day and age. More information sharing between companies has been made easier due to new technology, so any blemishes on your credit will be known by all credit reporting agencies almost immediately. Keeping up with your credit score and taking steps to improve you credit score is essential, so take the time.

For more information about how to obtain credit cards, get credit reports, reduce credit card debt, or prevent Identity Theft, go to http://creditcards.youngparentsmagazine.com Jennifer Tarzian also has a lot of information at http://www.youngparentsmagazine.com for young parents you can use. Chris McElroy has been an advocate for consumer rights on the Internet since 1995 and also runs a missing children’s organization at http://www.kidsearchnetwork.org

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Credit Score Analysts

For many people, starting their own business is a personal dream. Before fulfilling your personal dream, it’s necessary to get your personal finances in order. At this early stage you’ll be using your own personal finances to start your business and if you want to succeed you must approach your personal finances with a professional eye.

Avoid funding start-up expenses via credit and running up huge credit card debt. Instead you should apply for a business loan, which has the benefit of being a one-time loan with typically lower interest rates than a credit card. However, in order to get good terms on your loan, you will have to have your credit card debt in order first.

Without an established business credit history, lenders will have to look to your personal credit to negotiate your terms. You don’t want personal credit problems starting your business credit off on a bad foot.

Three Steps to Starting Your New Business With a Clean Credit Score

A clean credit score will help you get the low interest rates you need to start your business on solid financial ground.

Step One. Pay off your credit card debt.

Once you know where your credit weaknesses lie, zero in on them to start improving your standing. Your goal will be to completely eliminate all credit card debt. It may seem like an insurmountable task, but in reality, paying it off as fast as you can is actually easier and less expensive than paying it off over a period of many years.

First, start paying double the monthly minimum on the balance with the highest interest rate, while paying the minimum monthly due on everything else. By paying down that highest-interest balance, you will save yourself from potentially spending thousands extra in interest - and you’ll be done in half the time. Once you have paid off that balance, move on to the one with the next highest interest, and so on down the line. Eventually you will enjoy the freedom of zero credit card debt. In fact, if you find yourself having a hard time staying away from credit card purchases - take them out of your wallet and bury them in your closet until you have improved your financial situation.

Step Two. Check your credit report.

Have you seen your credit report? You can get a copy of yours by visiting http://www.freecreditreport.com. Look over it carefully to make sure there are no mistakes that could have negative effects on your credit and your interest rate.

If you find any mistakes, you may dispute them through the credit-reporting agency. The creditor then has 30 days in which to respond to your dispute. If they fail to respond within 30 days, the disputed information is expunged. If it is a particularly old debt, creditors may not even bother to respond. Disputing credit report mistakes is definitely worth a try since you have nothing to lose but bad credit.

Step Three. Pay bills on time.

Your credit is not based solely on your ability to pay off your credit card debt. You must also demonstrate that you are responsible when paying your bills: utility bills, car payments, and rent for example. Try to pay all of these on time and in full and it will reflect well on your credit report. If you have trouble remembering to pay your bills on time, try to keep them all in a highly visible place so you will have a constant reminder to pay them.

Many utility bills may be paid online these days, so you can simply check with your utility companies to set up automatic payments. Not only do you maintain good credit by paying on time, but you also avoid paying late fees, and saving money is always a wise financial move!

Before you establish your own business, it is imperative that you begin with a clean slate: no debt, healthy credit, and responsible financial habits. When you have a good credit score to begin with, your business will have a stronger start and will be easier to run. Good finances mean success. Best of luck with your new business venture!

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Improving Credit Score

Many of us may not know our credit score, some may not even be aware of a credit score, that is until they attempt to apply for credit of some sort, be it a credit card, mortgage or apartment rental. To most, they view our credit score as a one dimensional number, nothing more, hence the reason it is so important for us to become more aware of what our credit score is. People see our credit score as an indication of who we are as people. Frankly, I don’t feel that I should be judged for not having paid a bi during my college years, but unless we become proactive regarding our credit report, that is how it will be.

Let’s consider the elements that make up our credit report and ultimately decided our credit score. The first factor is payment history. Basically do you pay your bills on time. The second factor they look at is your outstanding debt. How much do you owe and to whom do you owe it? The third factor is length of credit history. I feel this category is very biased against young people trying to establish credit. This category leaves them little to no way to get around, they are only so old, therefore could only have a credit history so long, right? We’ll get into that later. Lastly they look at recent inquiries made by different credit companies be it credit cards, mortgages, etc. and what types of credit you have, credit cards, auto loans, fixed or revolving accounts.

Now many of us may look at these categories and think that, for the most part, the factors are out of our control, unable to be manipulated with, but that is untrue! Let’s look more at each element of your credit report. The first thing we mentioned was payment history. Now this is somewhat straight forward, but many times they may have misinformation or information that is all together untrue! This is why you should always be aware of what is on your credit report, so that you can make sure it is a true representation of you. Secondly is your outstanding debt, this factor obviously is something you need to work on yourself to get the debt down, never pay only minimums on your credit cards, if you can help it. Obviously certain circumstances do arise that make this impossible at times, but you need to become more aware of spending in these times. Loan companies like mortgages, and other types of insurance will look at what is known as your debt to income ration, the ideal ratio is 35%. That means your debt should only make up 35% of your total income you bring in.

The third factor is credit history, the somewhat biased factor. Now I said this is something that you can’t get around, but you can lengthen your credit history at least how it appears on you credit report. How? By asking an older person with good great standing and a longer credit history to add you to one of their accounts as a user on their account, It will appear on your credit report as you having that credit card for as long as the older person has had that account open. Pretty tricky huh?

After looking at this information on your credit report you may find some errors, misreported information or negative items on your report and take the initiative to fix your credit report. This may seem like an overwhelming task but it really isn’t. If you try to just contact a credit agency they will most likely give you the run around unless you know what you are doing, the best ways to negotiate with them and probably most importantly, what your rights are. There are many resources out there to help you effectively negotiate with credit agencies and you should take advantage of others experience and expertise in this area. One site, www.creditrepairplan.com helps to take the confusion and overwhelming aspects of this process away. They help give you a calendar to follow, sample letters to get effective responses from creditors and so much more. They show you how to not get your accounts red flagged and cause you an up hill battle to get anything removed.

Your credit report is something that many may not even think about until they need credit. Take the steps now to fix your credit report and in the end, when you really need credit, you will save yourself with lower rates. Good luck and please, look at your credit report today and make it a true representation of you!

Kimberly has been involved in the financial industry for over a decade. She has taken her knoweldge of different financial issues and turned it into a campaign to help inform the consumer and allow them to make more informed fiancial decisions in the future.

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Credit Scoring

Do you know your credit score is?

Do you even know WHAT a credit score is?

Don’t feel bad.

Most people don’t.

Your credit score tells lenders the type of borrower you will likely be based on your credit history. Scores in the United States run between 300 and 950.

The higher your score the more likely is it that you will be approved for loans at favorable rates and payment terms.

You might think your credit score is not a big deal unless you are trying to get a home mortgage or a new car loan, but in business your credit score is just as important.

Consider this:

You may want to apply for a personal loan to fund the startup of your business.

As your business grows you may want to set up a line of credit with a bank to help manage cash flow.

You may need to purchase a building of your own.

You may need to establish lines of credit with vendors and suppliers

Even if you just want to apply for a credit card to charge your company car gas purchases to, your credit score is important.

So back to my original question: Do you know your credit score?

Neither did I until I was referred to a new website that offered to calculate my credit score just by going through a brief survey.

This website provides a free credit score to United States consumers by invitation only.

This survey is not open to the public without a referral.

Since I was invited to participate in the survey I can now invite you to do the same.

Whether you’re in business or an individual, you should have an idea of what your credit score is, even if you’re not currently applying for credit.

Knowing your credit score and occasionally checking your credit reports also helps you protect yourself from identity theft and credit fraud.

I was personally the victim of credit card theft recently and the fraudulent activity ended up as a ding on my credit and it was a PAIN getting it removed.

And I didn’t even know it had happened until I applied for a car loan and the misinformation turned up on my credit report.

If you’d like to complete the survey to get your credit score go to the link below.

Tim Knox Entrepreneur, Author, Speaker Tim Knox is a nationally-known small business expert who writes and speaks frequently on the topic. For more information or to contact Tim please visit one of his sites below.

http://www.dropshipwholesale.net http://www.smallbusinessqa.com http://www.timknox.com

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Improving Credit Score