Today is
By: Ikedi Ani-okoye
1. Check your credit report at all three bureaus Transunion Experian and Equifax at least once per year. More than one third of all reports contain errors serious enough to cause your application for a loan an apartment or even a job to be turned down. What you don't know can hurt you.
2. Make sure you check all three scores when you get your reports from each of the bureaus mentioned above. Just about all creditors that you might hope to borrow money from uses these complicated risk models as a matter of company policy to approve or decline applications. Most creditors will turn you down or accept you based solely on how bureaus estimate your score.
3. Get to know what an Emperica Beacon FICO Plus score means. These risk models range from a 350 to 850 and the median American has a credit score
around 690. A 600 or lower is considered bad tho' a 675 is good and a 720 is excellent. Anyone who has a FICO of 750 or higher had very good or perfect credit.
4. Reduce your balance to limit loan ratio or utilization percentage. Over utilization of allowed borrowing limits weight a whopping 30 percent on these scoring models. As a result paying down balances is the easiest and fastest way to raise your credit score fast. Pay your debt down to less than 30 percent and no more than 80 percent across all open loans.
5. Dispute any errors on your report through qualified delivery United States Post Office mail. Most souls do not realize that it is free and easy to dispute errors that are inaccurate, fraudulent or untimely.
6. Validate old second or third party collections and charge offs. Many debts are sold over and over for pennies on the dollar with no real chain legal rights to collect. Make sure the company you pay provides possession documents through mail.
7. Reduce the number of small local finance company loans. Local finance company loans hurt your credit more than large Visa, MasterCard type loans.
8. Reduce the number of small retail cards accounts like JC Penny, Lowe's and Sears. These cards tend to hurt your score like the small finance company loans.
9. Check your credit on-line before you apply for new loans and ask the potential creditor what terms you might expect whenever my income is this and my credit score is this. Shop Interest rates and reduce the number of hard hit questions on your report.
10. Make sure you have open current loans and reopen past bad accounts. I found that if you pay off old loans and submit a goodwill deposit to reopen the same account you can gain bargaining power. Keep the loan open for 12 months then call and ask your lender when they would report only the past 12 - 24 months defrayment activity. This is an amazing and powerful credit assistance tool that works under some conditions.
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