When you want to fix your credit score, you have some well known credit repair basics to do and then you will also have some tasks that are usually kept under wraps.
You will find the basics on just about every website, so I will start with those as this information would be incomplete without them then I'll move on to the ones that aren't quite as well known, yet even more powerful.
This is one of the most important factor in calculating your credit score. Its accounts for 35% of your score.
So if you check your credit score regularly and are late with a payment, your score will decrease and the lenders don't like to see this. In order to keep your credit score in a better light, if you have to be late with a bill, be late with one that doesn't typically show up on your credit report - please don't tell the gas and electric company that I said that.
Plan accordingly and get those payments in on time.
I cannot tell you how important this is. My husband just said "I need to order my free credit report." On his credit report, there was an $8000 managed debt account that was not his at all. Had he not checked his credit report, he would not have known and he may have gotten rejected for credit and not known why.
If you are maxed out on your credit cards your FICO® score will be lower. Keep your spending below 50% of your credit limit.
Of course, if you don't plan to have any immediate need for a good score, you can use more of your limit because your credit score is constantly changing. So you make a large purchase this month but you aren't applying for credit in the next 6 months, you will be fine going over the 50%. As long as it's back down a couple of months before you need it.
Keep the number of credit cards to two to three, a large number of credit cards will also bring down your FICO® score. You can have a couple major cards and a couple store cards, other than that, you really don't need more.
Another thing that lowers your FICO® score and makes lenders nervous is seeing several inquiries for new credit cards.
These are the tasks that are not so well known and that you will rarely see in information from a financial institution.
This is an incredible little change that can make a big difference, IF you know someone who is willing to do this. Basically, you know someone - we will name Fred - who has a good credit history. Fred puts you as a joint user on a credit card he has had for ten years and pays on a regular basis. You , in essence, get Fred's credit history and payment history for this card which can help fix your credit score fast.
One of the first things people when they are in a credit crisis or past a credit crisis is to close their credit account. This can actually hurt you more than help you. It takes away history and credit history adds to your credit score.
Its a great practice to check your score on a regular basis. Just be careful on how you check your score. You don't want to show an excessive amount of inquiries so it would be best to purchase your score instead of "getting" it from a creditor.
Only complete a credit card application when you think you can get credit or for what you really need. Every time a creditor pulls your credit for a credit card application, secured loan application or an online home loan application, you lose a few points on your credit score but even more importantly, if you have a lot of inquiries, it raises a red flag for the next creditor - whether or not you were approved.
A secure credit card can provide you with a very easy way to get a credit card and build a good credit history. It is an essential in credit repair. This is one of the key factors in how my family and I rebuilt our credit. We completed a secure credit card application for two accounts and still have both of them today which built a good credit history.
What!?!? Yes, this can be a key to credit repair, we took out 3 secure loans for $1000 each and paid them off over the course of 2-3 years. This really helped us to improve our credit scores after bankruptcy.
Close a Credit Card Account - Not sure whether to close your credit card account. Find out why its an important decision to keep it open.
Secure Credit Cards - Learn how this tool can help you on your road as you take the steps to credit repair.
Orchard Bank Credit Cards - Discover what lies behind the Orchard Bank Credit Card and if it is the right card for you.
Credit Score Simulator - Will a credit score simulator work for you when it comes to credit repair and how to fix your credit score.
Choosing A Secure Credit Card - Here I explain what you need to know when applying for a secure credit card.
Check My Credit Report - Learn what steps you may need to take to improve your credit score and remove information on your report.
Fix My Credit Score - Find out what you can do to raise your score (like Jenny raised her score 80 points in nine months.)
Low Cost Secured Credit Cards - Where to find low cost secured credit cards and what questions to ask.
Repair Credit Report History - Put together your action plan to repair your history and fix your credit score.
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