Ways to speed up the credit repair process

Date: Sat, 06/25/2005 - 12:55

Submitted by anonymous
on Sat, 06/25/2005 - 12:55

Posts: 202330 Credits: [Donate]

Total Replies: 2

Hi!! Please suggest me the successful ways to speed up my credit repair. I am thinking of rebuilding my credit.

Thanks
Josee

Hi JoseeWelcome to the forums. It is a good move to shap

Hi Josee

Welcome to the forums.

It is a good move to shape up your credit file. Before you start with the process, it is important to know your credit score. The three-digit number ranging from 300 to 850 is the key to your borrowing costs. While improving your credit score, the following steps will actually speed up your process.
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Pay down all your credit card debts ??? Though your payment of loans like the mortgage, auto, student loans etc. increase your score, but the payment of revolving accounts like credit cards increase your score fast. It will be helpful to get all the balances below than 30% of the credit limit on each card

Using cards lightly ??? Although you might be making full payments each month, but the key is to minimize the big balances. It is the big balances which actually hurt. You can speed up your increase of score by limiting your charges to 30% or less of a card's limit.

Checking the limits ??? Usually, there are some creditors do not report the consumers' limit to the bureaus. As a result, they use the highest balance to proxy your credit limit. Ask your creditors to update the information with the bureaus if they have not done it so far.

Re-shaping your old card - It is normally found that the oldest credit card which has been making timely payments fetches the best credit history. However, if they have been stopped using for some time, they won't be given as much weight in the credit-scoring formula as your active accounts. It is therefore advised to use the oldest cards every few months for a small amount and pay it off in full immediately when the statement arrives. That delivers best results.

Try to gain the faith of the creditors ??? There are a few credit card companies who sometimes ignore a late payment and do not report in your credit history. This can only happen if you have been a very good customer and have earned their faith and goodwill.

Disputing the old negative entries ??? If you find any entry wrongly placed in your credit file, you are required to dispute it. Negative entries which do not belong to you are not at all required to stay in your credit file.

Erasing the errors ??? It is the error in your credit report which lowers your credit score. And these errors sometimes cost you too much. So look out to fix all the errors in your credit report.

If you find any of the errors in your credit report, try to get it solved with the bureaus.

An account which is shown as late payment, charge off or a collection entry that actually does not belong to you.
Sometimes the credit limits of an individual are report lower than their actual value.
Accounts to be shown according to their present status ???Settles???, "paid derogatory," "paid charge-off" or anything hurts. Try to make timely payments and then it needs to be shown as "paid as agreed" in your credit report.
After filed bankruptcy, if a particular account is still shown as unpaid.
All the negative entries after 7 years and bankruptcy after 10 years should automatically wipe off from your credit report.

I hope that if you take the following steps, it will speed up your process of credit repair.

Regards
Roxette

lrhall41

Submitted by roxette on Sat, 06/25/2005 - 13:37

( Posts: 4009 | Credits: )

Re: Ways to speed up the credit repair process

[quote=Josee]Hi!! Please suggest me the successful ways to speed up my credit repair. I am thinking of rebuilding my credit.

Thanks
Josee[/quote]

Hi, it is great that you are taking an active approach in rebuilding your credit. First, there is no magic bullet that could make your score jump by a few hundred points. Increasing your credit score requires a lot of time and patience. Here are a few tips that might help you accomplish your goals.

First, take care of all of your outstanding debts. If you have any debts in collections or any late payments. Make sure your take care of these first. If you are having trouble making those payments, then seek out consolidation programs that could help you lower the interest rates on those debts. That would help you make these debts a little more manageable for you. In addition, it will help you normalize the varying interest rates that contribute to increasing your monthly payments.

In addition, you should consider using your cards wisely. Do not max out all of your credit cards. That could hurt your score substantially. You want to project an image of fiscal responsibility. So, be conservative with your credit and use it only when you need.

Also, keep open you unused accounts. No matter how old they are. Actually the older the better. Because the older accounts help to show creditor that you have had a long and established credit history. If you close these old accounts, the bevy of new accounts would give the impression that you are a new borrower. Both of these issues are important because the amount of credit you owe contributes to 30% of your score and the length of your credit history accounts for about 15. So generally speaking, these factors count for close to half of your score. So, remember to keep them in mind.

lrhall41

Submitted by benjaminz6 on Wed, 06/29/2005 - 17:46

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