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There are Tons of Ways to Boost Your Credit Score, Here's 10

1. Getting Rid of Errors in 2 Days

Deleting errors is the fastest way to correct errors on your credit report and raise your credit score. On top of that, it can only be done through a mortgage company or bank. If you apply for a home loan and find errors on your credit report, ask the loan officer to conduct a "Rapid Rescore". Don't mistake it for the credit clinic tactic of multiple dispute letters.

The "Rapid Rescore strategy" requires proper paperwork. You need to be able to prove that the item is incorrect. It has to come directly from the creditor. 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." - Dave Czach

This is the documentation a bank or mortgage company will require for the credit accounts. The great thing is, now you can better your credit score and receive a lower interest rate for the loan or refi your applying for. The results are not guaranteed and it costs you about $50 per account.

2. Negative Credit Removal

The well known area where you've heard of all the scams. Credit repair businesses charge a crap load and say they will give you a clean credit report. People end up spending hundreds, even thousands of dollars for something they can do themselves.

Deleting errors is easy. Removing bad credit that is correct requires more aggressive methods. Of course, that is not the idea of this article. So we'll focus on the removal of the bad credit errors.

Most of the time credit report errors disappear by using a dispute letter. When you have the paperwork from the creditor directly proving the error as mentioned above in Rapid Rescore, you need to send copies of that along with a dispute letter to the bureau's. The reason for this is that the credit bureau's can work faster and solve the problems faster.

Even if you don't have the paperwork to prove what is being reported incorrectly, send the dispute letter anyway. The federal law states that the credit bureau's have a "reasonable time" to respond to your claim. The bureau's will contact your creditor for verification of the dispute. After which, the error will be reported correctly or deleted. This process usually takes anywhere from 30 to 60 days.

Understand you don't have to do this yourself, you could always hire an attorney.

3. PiggyBack Somebody's Credit

This is a very fast method of boosting your credit. All you do is find a family member or friend that has good credit and ask them to put your name on an aged credit card or loan. What i mean by aged is that the credit card or loan has been around for years.

The hardest part is finding someone you trust and who trusts you. Obviously, the individual that lets you piggyback their credit, will not give you access to a credit card or the loan. All this is doing is putting your name on the loan or credit card. You are assuming their credit.

This needs to be done for 30 - 60 days or until your credit is good enough where a credit card company will allow you a credit card.

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. Order these cards at http://findacreditsolution.com/Poor-Credit/

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!!)" - Dave Czach

5. Pay your creditors on Time

We quote from Dave Czach,

"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." - Dave Czach

6. Pay Down Debts

You must understand that having revolving debt (credit cards - http://findacreditsolution.com) is key to a good credit score and report. All the creditors want to see that you can pay them back and you start with credit history.

Pay down all debt to less than 50% of what you have available to you. This shows that you are not in debt to your eyeballs and lets credit companies know that you can pay them back.

7. DO NOT Close Accounts

If you do pay off all your debt do not close the accounts. "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." - Dave Czach

8. No New Credit

AFTER YOU REBUILD YOUR CREDIT, avoid gaining new credit when possible. Every time you ask for credit your credit report is pulled and 2 points are taken off of your credit score.

9. Maintain A Mix of Credit Types

Apply for different types of credit like a car, credit card, and a mortgage. On a side note, have multiple credit cards and you will be set on your way to a better score as long as you avoid negative errors like missed payments.

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." - Dave Czach

© 2006 Find a Credit Solution.

-------- Editor's Note ----------

Find a Credit Solution has many years experience in the credit industry. They can be reached at http://www.findacreditsolution.com

This article may be reprinted without compensation provided there are no changes whatsoever to the article, the copyright notice and the complete Editor's Note. Any reprinting or duplication without these conditions is copyright infringement.

This article is free for republishing
Source: http://www.articlealley.com/article_60562_19.html


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