|
Delete Errors Within 48 Hours
Identifying and correcting errors in your credit report is an excellent way to boost your credit score quickly. The fastest way to correct errors you have found in your credit report is through a Rapid Rescore strategy. However, this strategy can only be employed with the assistance of a mortgager or bank, and can cost up to $50 per account disputation. This method applies mostly to consumers who find errors in their report while applying for a home loan or other type of personal loan involving a lending institution. This method is quick, but it requires documented proof of error from the creditor itself.
Delete Negative Credit Within 30 Days
Credit repair services offer to delete your negative credit and dramatically raise your credit score overnight. They also charge their customers hundreds of dollars for something that any consumer can do for free with access to a printer and a mail box. Credit report errors can disappear using any dispute letter addressed to the credit bureau. By federal law, it is incumbent upon credit bureaus to prove the legitimacy of items found in consumer credit reports. Consequently, all three credit bureaus must be able to prove the truth of every credit item found in any person’s credit report. By law, the bureaus are afforded a “reasonable” amount of time, approximately 30 days, to do this. This approach takes longer to correct errors found in your credit report, but it is completely free and requires no demonstration of proof on your part.
The Round Robin Strategy
This is clever way to raise your credit score by showing FICO that you can manage multiple revolving credit accounts. Apply for a credit card and use 70% of your new credit limit for a cash advance. Apply for a second and third credit card, using 70% of their respective limits for cash advances. Place the money in a checking account. Use the money to pay down the cards over the next year. Your credit score will decrease initially because of the three inquiries logged onto your credit report at the time of application, but if you continue to make timely payments your score will rise. Round robin strategies require the self-discipline not to abuse the three new cards.
Common Sense Strategies for Debt Management
Credit scores measure how well a consumer can manage his or her debt. As counter intuitive as it may seem, paying “off” debt completely is not as desirable as paying “down” debt. If you pay off all your debt, then you have no debt to manage and no credit activity to raise your credit score. Keep your debt at a healthy, manageable minimum. A Good goal is to pay your monthly bills on time and to never exceed 70% of any single account’s credit line.
Additional Resources:
|
