Raising Your Credit Scores Is No Laughing Matter
Raising your credit scores takes some common sense, some insider information, (the kind you would really have to dig for, like court cases and published studies) and a plan of action.
There are basically two actions you can take to raise credit scores, one you can control, the second you can’t. Both are worth doing.
Let’s raise your credit scores with the actions you can take…
Start with using the credit cards you have. If they have very low balances (less than 30% of your available credit line), keep those balances low and make your payments on time. This adds positive credit history every 30 days as the creditor reports to the credit bureaus. If your balances are above that 30% threshold there are a couple of options. (1) You can stop using them and pay down the balances until you get at or below the 30% threshold. At or below 30% will give you the highest scores for unsecured credit lines. (2) You can get more credit thereby raising your overall credit limit against the amount of debt you are carrying.
If your credit is too poor to get a credit card or you haven’t yet established credit yet, here is a quick list of the best credit cards for building or establishing credit. Credit cards for bad credit.
Another possibility is to become an “authorized user” on someone else’s account (like a sibling or parent). This gives you their great credit rating on your credit report instantly raising your credit scores.
Raising your credit scores by targeting the bad credit…
This can be a bit tricky. No one can guarantee the outcome of using a credit repair company, yet the results that they are getting is pretty amazing. Removing bad credit from your credit report will definitely improve your credit scores.
You can easily do this yourself with a little research and a lot of patience or hire a reputable credit repair company.
I received a call this morning from a loan officer in Florida. She said that her clients had been working with a credit repair company with good results and now qualified for a mortgage but their credit report showed several accounts being disputed.
Lenders will no longer fund loans where there are disputes on a credit report. The reason is that, by law, when an account is in dispute it cannot be used in calculating a credit score. The results show an inaccurate score until the dispute has been resolved.
Here is how to stop the dispute. Contact the credit bureaus directly by phone. Each bureau is set up to handle this directly and immediately. Simply explain that you are no longer disputing this account and would like your credit report to reflect that.
It may take a day or two before it actually shows up. You can also contact the creditor directly and explain the same thing, account no longer in dispute. They will then report to the bureaus usually within 24 hours.
My experience says do both to insure that it gets done.