101 Tips For 700 Credit Score|Raising Credit Score|Bad Credit Report Repair(Tips 13-24)

Nov 16

101 Tips For 700 Credit Score|Raising Credit Score|Bad Credit Report Repair(Tips 13-24)

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Tip #13: Be careful of online loan rate comparisons.

Online loan rate quotes are easy to get – type in some personal information and you can get a quote on your car loan, personal loan, student loan, or mortgage in seconds. This is free and convenient, leading many people to compare several companies at once in order to make sure that they get the best deal possible.

The problem is that since online quotes are a fairly recent phenomenon, credit bureaus count each such quote estimate as an “inquiry.” This means that if you compare too many companies online by asking for quotes, your credit score will fall due to too many “inquiries.”

This does not mean that you shouldn’t seek online quotes for loans – not at all. In fact, online loan quotes are a great resource that can help you get the very best rates on your next loan. What this information does mean, however, is that you should research companies and narrow down possible lenders to just a few before making inquiries. This will help ensure that the number of inquires on your credit report is small – and your credit rating will stay in good shape.

Tip #14: Don’t make the mistake of thinking that you only have one credit report.

Most people speak of having a “credit score” when in fact most people have at least three or more scores – and these scores can vary widely. There are three major credit bureaus in the country that develop credit reports and calculate credit scores. There are also a number of smaller credit bureau companies.

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Plus, some larger lenders calculate their own credit risk scores based on information in your credit report. When repairing your credit score, then, you should not focus on one number – at the very least, you need to contact the three major credit bureaus and work on repairing the three credit scores separately.

Tip #15: Don’t make the mistake of closing lots of credit accounts just to improve your score.

This seems like a contradiction, but it really is not. Many people think that to improve their credit score, they just have to pay off some debts and close their accounts. This is not exactly accurate. There are several reasons to think carefully before closing your accounts.

First, if you close an account you need (for example, if you close all your credit card accounts) then you will have to reapply for credit, and all those inquiries from lenders will cause your credit score to actually drop.

Secondly, most credit bureaus give high favorable points to those who have a good long-term credit history. That means that closing the credit card account you have had since college may actually hurt you in the long run. If you have credit accounts that you don’t use or if you have too many credit lines, then by all means pay off some and close them.

Doing so may help your credit score – but only if you don’t close long-term accounts you need. In general, close the most recent accounts first and only when you are sure you will not need that credit in the near future.

Closing your accounts is a bad idea if:

1) You will be applying for a loan soon. The closing of your accounts will make your credit score drop in the short term and will not allow you to qualify for good loan rates.

2) Closing your accounts will make your overall debt balance too high. If you owe $10 000 now and closing some accounts would leave you with only $1000 of possible credit, you are close to maxing out your credit – which gives you a bad credit rating. In the short term, closing accounts will lower your credit score, but in the long run it can be beneficial.

Tip #16: Don’t assume that one thing will raise your credit score a specific number of points.

Some debtors are lead to believe that paying off a credit card bill will be raising credit score by 50 points while closing an unused credit account will result in 20 more points. Credit scores are certainly not this clear-cut or simple. How much any one action will affect your credit score is impossible to gauge. It will depend on several factors, including your current credit score and the credit bureau calculating your credit score.

In general, though, the higher your credit score, the more small factors – such as one unpaid bill – can affect you. However, when your are working on bad credit report repair, you should not be equating specific credit repair tasks with numbers. The idea is to do as many things as you can to get your credit score as close to 800 as you are able. Even if you can raise your credit score by 100 points or so, you will qualify for better interest rates.

Tip #17: Don’t think that having no loans or debts will raise your credit score.

Some people believe that owing no money, having no credit cards, and in fact avoiding the whole world of credit will help raising credit score. The opposite is true – lenders want to see that you can handle credit, and the only way they can tell is if you have credit that you handle responsibly. Having no credit at all can actually be worse for your credit score than having a few credit accounts that you pay off scrupulously. If you currently have no credit accounts at all, opening a low balance credit card can actually boost your credit score.

Tip #18: Never do anything illegal to help boost your credit score.

It seems pretty obvious, but plenty of people try to lie about their credit scores or even falsify their loan applications because they are ashamed of a bad score. Not only is this illegal, but it is also completely ineffective. Your credit score is easy to check and not only will you not fool lenders by lying but you may actually find yourself facing legal action as a result of your dishonesty.

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If you want to raise your credit score, you need to go right to the source – your credit report. Free Credit Report + Score. See yours at CreditReport.com! .Your credit report contains the information and data on which your credit score is based. If you can alter or update the information in your credit report, your credit score will change to reflect the alterations. For this reason, getting and checking you credit report is one of the first things you should do when you attempt to repair your credit score. There are a few tips that can help you deal with your credit report so that you can give your credit score a boost:

Tip #19: Dispute errors on your credit report

Contact each of the three major credit bureaus - TransUnion, Equifax, and Experian – and get copies of your credit reports and credit scores. Carefully read over the reports and note any errors. In writing, contact the credit bureaus and ask that mistakes be removed or investigated.

This is called a dispute letter and once it is received, credit bureaus have to investigate your dispute within thirty days of receiving your letter. It is important to keep a copy of your letter and it is important to note the date the letter was sent. You should not be accusatory or abusive in your letter – calmly and clearly state the problem and request an investigation.

Note that you are aware the agency is required to investigate the claim within thirty days and note that you will follow up. Be sure that you do follow up with the issues you raised in your letter – just because the agency investigates does not always mean that your credit report will end up error-free.

Many credit bureaus now make it possible for you to correct errors on your credit report online – and many have information on their web sites that tells you exactly how disputes must be handled to be effectively removed. It is important that you follow this information exactly so that the inaccuracies on your credit report are removed promptly and your credit score is updated as soon as possible.

Tip #20: Add a note to your credit report if there is a problem you can’t resolve

Sometimes, there are legitimate reasons why you didn’t pay a bill. If a contractor refused to finish a job or did a poor job, then you may have refused payment, but the non-payment may still count against you on your credit report. If there are any unusual circumstances surrounding your credit report that may affect your credit rating – such as a case of identity theft – you can ask that a note be attached to your credit report to explain the problem.

Some lenders will pay attention to this and some will not, but it is a better solution than nothing at all. Such a note will not affect your credit score but will affect your credit report. More importantly, it leaves a paper trail of the problem that lenders can look at if they choose.

Tip #21: Make sure you know who is looking at your credit report and why

Many inquiries look bad on your credit report, but more than that you likely want to know who can see your personal financial information, now that you know that your personal information is stored in a credit report. If you sign a document with a lender or apply for credit online, you can be sure that someone is looking at your credit report. Get an Equifax 3-in-1 Credit Report Now!

However, you may want to look over other documents in order to see who is taking a peek. Insurance agents will often look at your credit report, for example. Some landlords and potential employers will, too. You need to be careful about online sources, too. In general, when you provide someone with your social insurance number, you may be giving permission to look at your credit report. You shouldn’t bar people from looking, but knowing who is looking is good financial practice.

Tip #22: Know the difference between soft and hard inquiries

When you pull your credit report to look at it, it is counted as a “soft inquiry.” Only “hard inquiries” from lenders will affect your credit score dramatically. Although checking your credit score too often is an expensive habit, you should not avoid checking your credit report because you fear it will make your credit rating worse.

Tip #23: Contact creditors as well as credit bureaus when correcting inaccuracies in your credit report

When debtors find mistakes on their credit report, they often only contact the credit bureaus. While this is the most effective way to resolve the issue, you should in some cases contact the creditors whose account has caused a ding on your credit report. This can help future dings and resolve problems faster.Mistakes in your credit report can cost you! Check it for accuracy – $0

Consider an example: Let’s say that you were late sending a credit card payment two months ago because you were sick. The late payment is listed as a ding on your credit report even though you have paid it already. You should contact the credit bureau in order to get the error removed.

However, if you notice that the same credit card company has you listed as having late payments three months when you paid on time, then it is time to contact the credit company and ask how to resolve the problem. The information reported about you to credit bureaus should be accurate – if it is not, then the credit company should work to make sure that they correct the problem so that it does not happen again. You have an advantage in this – the credit company, unlike the credit bureau, depends on your business for their money.

This means that the credit company (or any other bill company presenting inaccurate information about you) is well motivated to correct the problem or risk losing you as a client. If you find that a company consistently reports inaccurate information about you to credit bureaus, consider making a formal complaint to the company about it or switch companies. There is no reason why one company’s poor organization should cost you your good credit score.

Tip #24: Look out where you get your credit report – and what it contains

You can get your credit score from any number of resources. One place you can get it from is from credit bureaus themselves. You can pay for the service, but you qualify for one free credit report a year or qualify for a free credit report if you have recently been turned down for credit or if you think you may have been the victim of identity theft.

If you can, get a copy of your free credit report from each of the three major credit bureaus. If you can’t get a free credit report, you should still try to get one, even if costs a few dollars. The savings you will enjoy on your loan rates when you improve your credit score will more than pay for the cost of the reports.

There are a number of online companies that offer free online credit reports. These offers are very attractive because you get an online report without having to wait for a report to be sent to you, and you often can get several reports from the different credit bureaus at once, which can save you time.

However, these online companies vary widely, so you will want to compare a few different firms before choosing one. You will also need to read the online company’s agreement very carefully – some promise free credit reports only with the purchase of a credit repair program or some other kit. In some cases, you can decline the offer and still get the report but in other cases you cannot. Buyer beware.

Also, some companies will offer you free credit reports that are really a combination of reports from the three major credit bureaus. This is not useful, since you will want to compare each of the three credit bureau reports and fix each credit score separately. You will want to look out form online companies that offer credit reports that are very condensed and you will want to avoid companies that will spam you (send you unsolicited emails) trying to get you to subscribe to some service.

Always read carefully to see whether the free credit report offer is legitimate. That said, there are a number of online companies that offer credit reports and credit scores at no charge and these can be a useful way for you to start your credit repair, especially if you are comfortable around computers.

If you don’t qualify for a free credit report from the credit bureaus, a legitimate online company may be your best bet of getting your credit information so that you can start repairing your credit risk rating.

You do qualify for one free credit report per year. You can get this credit report through email at www.annualcreditreport.com or by calling 877_322_8228. You can also ask for your free credit report by mail by sending a letter to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348_5281 or by filling out the form available at the Federal Trade Commission’s Web site at:

http://www.ftc.gov/bcp/conline/edcams/credit/docs/fact_act_request_form.pdf.

No matter where you get your credit score and credit report, make sure that you get the most complete information package you can. Credit reports are not very exciting or even easy to read. If you are ordering your report online, look for one that includes graphs or lots of details that are easy to understand.

Make sure that you get both your credit report and your credit score – even if you have to pay extra. If you get just your report, you will not be able to follow the secret and complicated math formulas used to arrive at your score and the report itself will not make as much financial sense to you if you don’t have your score in front of you, as well. When you do get your credit report you will notice that it contains lots if information about you, including:

1) Your personal and contact information. This will include your name and your address, as well as your past several addresses, your social insurance number, your employers (past and present) and your birth date.

2) Your personal information about credit. A credit report notes all the details of your loans, including the types of loans you have now and have recently had, the dates these loans were opened, the credit limit on each loan, how well you have been repaying those loans (this is important – skipped or late payments count heavily against you in your credit score), and who your lenders are.

3) Information about you that is on the public record. This may include bankruptcies, unpaid taxes, unpaid child support, tax liens, your dealings with collection agencies, foreclosures, loan defaults, civil lawsuits that you have been involved in, and other information. Much of this will stay on your credit report and will seriously affect your credit score.

4) Information about who has looked at your credit report and credit score. Every time that someone looks at your credit score it is called an “inquiry.” Your credit report lists who has looked at your credit report in the past two years and how often you have applied for loans and credit in that period of time. Too many inquiries tends to look bad and tends to affect your credit score.

When you get your credit report, it is important that you look at all parts of your credit report and understand what you are reading. Mistakes in any area of your credit report can affect your score, so be sure to check the entire report for inaccuracies and errors.