###10 Ways To Boost Your prestige Score###
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1. Deleting Errors in 48 Hours
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Secured Credit Cards
This is the absolute fastest way to definite errors on your credit
report and raise your credit score. However, it can only be done
through a mortgage firm or a bank. If you apply for a home
loan and find errors on your credit report, invite the loan
officer to escort a Rapid Rescore. But don't mistake it for the
credit clinic tactic of multiple dispute letters.
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"Secured Credit Cards"The Rapid Rescore strategy requires proper paperwork. You need
proof that the item is incorrect. It must come from the creditor
directly. For example, a letter stating the catalogue is not your
account, a letter stating the catalogue was paid satisfactorily,
a release of lien, a delight of judgment, a bankruptcy
discharge, a letter for deletion of collection catalogue or any
relevant evidence.
This is the same documentation a bank or mortgage firm would
require for the credit accounts anyways. The discrepancy is, now
you can enhance your credit score and receive a lower interest
rate. The results are not guaranteed and will run you about
per account.
2. Deleting Negative Credit
This is the infamous area where you've heard of all the scams.
Credit fix clinics payment "an arm and a leg" and promise a
clean credit report. Sometimes even a new credit profile! population
spending hundreds, or even thousands, of dollars for something
they can do themselves.
Removing errors is simple. Deleting negative credit that is
accurate requires industrialized methods. But that is not the scope
of this report. So I'll focus on the deleting the negative
errors.
Credit narrative errors no ifs ands or buts disappear by using a easy dispute
letter. If you have the paperwork proving the error as mentioned
above in Rapid Rescore, send copies of that along with the
dispute letter. This will make the credit bureau's job easier and
you will get faster results.
If you don't have the documentation to prove the error(s), send
the dispute letter anyway. According to federal law, the credit
bureau's have a "reasonable time" to validate your claim. They
will contact the creditor for verification of your dispute. Then
the catalogue will be reported accurately - or deleted. It has been
generally appropriate the "reasonable time" to unblemished this task is
30 days.
If you're not the do-it-yourself kind of person. Or don't have
the time. You could hire person who is very economical.
3. PiggyBack Someone's Credit
This is a fast and great petite credit score booster. But it
requires a very trusting relationship. Plainly put, person else
adds you to their credit account. For example, when applying for
a credit card, you may have seen the section to add a card holder.
If your trusting person adds you, their cost history is now
reported on your credit narrative too. If they have excellent credit,
now you have a excellent account.
To make this more effective, use an aged account. Imagine if your
trusted person has a 10 year old credit card catalogue with a
perfect cost history and a equilibrium of only 50% of the credit
limit. Wouldn't you love to have this on your credit report? The
easy part is your trusted person just calls the credit card
company and requests a form to add a cardholder. Once completed
and activated, their entire catalogue history and future is now
firmly planted on your account. Imagine if you secured 3-5 of
these accounts - especially installment accounts. Your credit
score could sky-rocket!
The inspiring part? seeing the trusted person. Since you already
have a low credit score and bad credit, how eager will person be
to make you a cardholder? Even your parents don't want you to
damage their credit. But, no one says you need to possess the card!
In other words, your trusted person could add you as a card holder
and never give you the card or Pin or any information. Since the
bills and all catalogue data is still mailed to the trusted
person's address, you won't know whatever about the account. This
scenario could land you many trusted persons. And you still benefit
with a higher credit score.
4. Playing Round Robin
This strategy is one of the oldest credit construction techniques
around. It used to be closed with secured savings accounts.
But now, it's much easier with secured credit cards. In fact,
I've used this recipe myself.
Here's how it works: Take ,000 (or what you can afford) and get
a secured credit card. Once received, get a cash expand of 70%
of your credit limit. Get a second secured credit card. Once
received, get a cash expand of 70% of your credit limit. Get a
third secured credit card. Once received, get a cash expand of
70% of your credit limit.
Open a new checking catalogue with the final cash advance. Use this
account only for production payments on your three new credit cards.
If you make your payments on time every month, your credit score
will increase because you now have three new excellent cost
credit cards. (Initially, your credit score might drop a few
points due to the rapid, multiple accounts being opened. However,
be outpatient because within 4 months of no new accounts or any
delinquencies of any account, you will see your credit score
increase. Mine increased 60 points in 60 days!!)
5. Pay on Time
This one is quite obvious. But after 12.5 years in the mortgage
business, I discovered it still needs repeating. Your creditors
were gracious enough to loan you money. Now pay your damn bills!
If you don't, your credit score decreases. Even If Only 30 Days
Late!
That's right folks. For some theorize population think, "I'm only a
few weeks late. What's the big deal?" Well, for the loan company,
if you pay late but consistent, they make a lot more money with
late fees and more interest (if a easy interest loan). For you,
your credit score is damaged. If you think long-term and credit
score, I'm definite you would not have a cavalier attitude.
6. Pay Down Debts
This seems like an definite method, doesn't it? But it is not as
transparent as you might think. Remember, we're playing with
high-level statistics and probabilities which evaluates and
forecasts trends in your behavior. Here's what you do...
Never pay off your revolving debt in it's entirety! Isn't that a
surprise? Think about it. Your credit score is a reflection of
your potential to administrate your credit. Paying off your debt is not
managing your debt. If you have a zero balance, how can you administrate
it? You don't. It no longer exists. And you cannot administrate what
does not exist, right? Therefore, in terms of credit score, you
have demonstrated your potential to speedily pay off accounts to
avoid managing them. Thus, slightly decreasing your credit score.
One exception, of course, is if you're over extended to begin
with. Pay off what's significant to make your credit profile look
great. Then administrate the remaining credit.
7. Don't Close Accounts
Even if you pay off revolving debts, do not close the account.
The longer an catalogue is open with no negative reports, the
better it reflects in your wide credit score. This is due to
the weighted-average in the credit score formula. Many credit
experts advise a equilibrium of 30% of your credit limit. That's
ideal. But you can go as high as 70% and still articulate a
healthy credit score.
8. No New Credit
You must be vigilant in your credit behavior if you want the best
credit score. Therefore, do not get any new credit unless it is
absolutely necessary. Each time you apply for credit, an inquiry
is added to your report. This normally drops your credit score
slightly. When you have fresh credit, there is no track narrative
how you will administrate (or pay) this account. Therefore, it's a
higher risk which results in a minor drop in your credit score.
Remember, your credit score is about risk assessment.
Here's what you do: obtain credit for your housing, transportation,
college or prolonged study and 3-5 credit cards. That's really
all you need for personal credit. If you want more credit, request
a credit limit increase on your current cards rather than apply
for new ones.
9. articulate A Mix of credit Types
If you show you can cope dissimilar types of credit at the same
time, you are rewarded with a great credit score. In other words,
get installment loans like vehicle, personal loan or mortgage.
Get revolving credit like credit cards: Visa, Mastercard, Sears,
Sunoco Gas, Costco. By mixing it up, you demonstrate you can
manage your credit because you will have short term and long term
credit with a fixed payment. As well as a "variable" monthly
payment on your credit cards.
Keep these accounts open with a equilibrium of 70% or less and paid
on time and you will recognize your credit score climb to great
heights.
10. Don't File Bankruptcy or Foreclosure
Here's the most definite advice: Don't file for bankruptcy or
foreclosure. These stay on your credit narrative for 10 years and
always decrease your credit score. The older the bankruptcy or
foreclosure catalogue becomes, coupled with re-built credit
history, the less of an impact they play on your credit score.
Contrary to popular beliefs, you can legally delete a bankruptcy
and foreclosure. It's not easy. But it's possible. See the
advanced methods for that solution.
To speedily rebuild your credit history after a bankruptcy or
foreclosure, use the Round Robin strategy above and get secured
credit cards. Now you can even get a car loan or mortgage right
after bankruptcy.
© 2004 David Czach.
-------- Editor's Note ----------
Dave Czach has 12 years contact in the mortgage firm and
a Bachelor's Degree in Real Estate. He can be reached at
http://myLoanHero.com/go.cgi/daveczach.
This narrative may be reprinted without payment provided
there are no changes whatsoever to the article, the copyright
notice and the unblemished Editor's Note. Any reprinting or
duplication without these conditions is copyright infringement.
-------- Editor's Note ----------
10 Ways To Boost Your prestige Score
