Rabu, 22 Februari 2017

7 Tips On How To Repair Your Credit Score

Hasil gambar untuk credit
1) Hire A Credit Specialist To Repair Your Credit Score
Credit specialists can improve your score by correcting inaccurate reporting or by removing negative information in your credit report.
2) Always Pay Your Minimum Payments On Time.
If you cannot pay your minimum payment call the customer service department for the lender or creditor and make a payment arrangement. At least pay them something rather than nothing. Make an arrangement to pay the balance.
By law a lender creditor or collection agency cannot mark your credit if you are under an arrangement to pay. Usually most people make arrangements to pay once their credit is damaged. An easier way is not letting it get to that point. Payment history comprises 35% of your entire credit score!
3) Keep Your Revolving Credit Card Balances Under 30% Of Their Limit
This one is simple. Don't use more than 30% of your available credit. If you have a $10,000 credit card, then treat it like its a $3,000 credit card. If you are using more then 30% of each card pay more than the minimum payment to get it down. Ideally you would like to be at 10% or under but not zero. You want to show your creditors that you are using and not abusing your credit lines. Consumers who do not use over 30% of their credit limits for a few months are considered low risk and have much higher credit scores. Credit utilization comprises 30% of your entire credit score!
4) Pay Your Mortgage Before Other Debts
Mortgage payments are weighted differently then other payments by the bureaus. Make sure you pay at least the minimum payment on time or call to work out an arrangement if you are going to be short or behind. They will work with you if you keep them in the loop. And as long as you have an arrangement they cannot mark your credit. The worst thing you can do is to just ignore it.
5) Dispute All Collection Agency Notices
In the future, regardless of whether a debt is valid or not, dispute all notices from any collection agencies. There are certain rules and laws that these agencies have to abide by. If you read the first notice you get from a collection agency it will say "you have 30 days to dispute the validity of this debt". Send a letter along with a copy of the collection notice within your 30 day dispute period. Make sure the letter states that you "dispute the validity of this debt". It should also state that you are "requesting a cease and desist from all collection attempts via telephone. All communications regarding this debt should be in writing". Send it by certified mail to the collection agency. By law they can still contact you by phone one more time to let you know of their intentions. However, the best part about doing all this is not only will you have to deal with annoying collection agency phone calls, but once a debt is disputed IN WRITING they legally cannot mark your credit!
If a collection agency still attempts to collect by telephone write down the dates, times, who you spoke with and if possible record the message. That collection agency will be in violation of the FDCPA and you can be entitled to funds from fines and damages.
6) Set Up Installment Arrangements
Set up installment arrangements for any future tax debts. We have a clever way of dealing with past tax liens, call us for more information about that. The state and federal government doesn't play around when dealing with tax debts. They are hard to dispute the validity when you or your employer files your taxes with your social security, and birth date, and paperwork that you signed at employment. Don't let it evolve to a judgement or lien, Set up a payment plan that is appropriate for both parties. Again by law they cannot mark your credit as long as you are under a payment arrangement. Set up that arrangement BEFORE you get a lien or judgement on your credit report.
7) Don't Apply For New Credit
Here is very simple tip. Don't apply for credit unless you know you will be approved. Especially if you have been turned down recently. Ask the lender what their qualification for approval are before you apply. Mortgage lenders have very clear qualifications for approval. For instance FHA will require you to have at least a middle score of 620, 4 months of reserve mortgage payments liquid, and they require that you have no judgments, liens or accounts in collections. That's pretty clear cut right? Many auto loan lenders will approve you with low credit if you have a cosigner with good credit. If you don't meet the qualifications, or you don't have the consent of the cosigner, don't apply for the credit line. In the end it's not worth an inquiry on your credit report unless you are going to get the credit line.

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