Do you want to build and keep up a good credit score? Expert on credit repair and restoration Jim Kemish talks about a few powerful ways to fix your credit that can make a big difference in a short amount of time.
You can get good credit.
There are many benefits to having good credit. You will get a lot out of the work you put into raising your credit score. Here are some powerful ways to fix your credit that can make a big difference in a short amount of time.
Check if your credit limit is too high.
Your credit score depends a lot on how your current balance compares to the amount of credit you can use on each of your revolving accounts. People often forget about this important point. Every account on your report that can be used more than once should be looked at. Send a dispute letter to each of the three credit bureaus and ask them to change the information if the high credit limit is understated. Don't call the credit card companies directly. It's up to the credit bureaus. Let them take care of it. The results will be better and come more quickly.
Raise the limits on your high credit cards
You should also think about taking one more step, which can also lower the ratio of your current balance to your high credit limit. Call all of your credit card companies and ask them to raise your limit. They might agree or not, but you might be surprised either way. Also, don't forget that you're doing this to improve your credit. Even if your credit limit is higher, that doesn't mean you should use it.
Check how old your accounts are.
When you open a new account, it hurts your credit score. On the other hand, the credit bureaus will give you credit for the accounts you have kept open for a long time. When you look at your three credit reports, pay close attention to the first date that each revolving and instalment account was reported. Send dispute letters to the credit bureaus if the age of the account on your credit report is wrong. Don't bother to talk to the creditor directly here, either. You will find that the time spent on this is well worth it.
Bring back a dead account
It's not unusual to find an old account you forgot about on your credit report. Please don't close the account if you don't have a lot of credit. If you don't have the card anymore, I recommend that you call the company and ask for a new one. You should buy something small with it when you get it. The exact formula that makes up the FICO score is a secret, but from what we've seen, it's best to use a credit card every now and then. The best accounts are the old ones!
Locked-down cards
If you don't have much credit and want to raise your credit score, you must get a few credit cards. Secured credit cards are a great option that can be used by anyone, no matter what their credit history is. In the credit repair business, this is what we tell people to do. It's true that opening a new account will hurt your credit score, but not having any credit is much worse. In this situation, secured cards will make a big difference in a good way. Most of the time, there are fees and interest rates that are pretty high with these cards.
Cards for Authorized Users
In addition to getting a couple of secured credit cards, you should also ask a trusted friend or family member if they will let you be an authorised card member on one of their accounts. At the moment, it seems that the FICO scoring model gives new authorised card members the full score benefit of the credit history of the main card member. Please keep in mind that being an authorised user is not the same as being an extra card member. You don't have to qualify to be an authorised user, and either you or your friend can take away your status at any time. I think that you and the main card member will both want to be an authorised card member.
Post Bankruptcy Cleanup
If you've been through bankruptcy, as soon as you get your discharge, you should take steps to clean up your credit with all three bureaus. If you don't think you can handle the paperwork, you should hire a reputable credit repair company. A good credit repair company won't cost you much and will be able to do this quickly. The credit bureaus must remove all negative information from each account that has been closed. If you don't do anything, your credit report won't get cleaned up on its own. As soon as sixty days after your discharge, a thorough clean-up after bankruptcy can have a big effect on your credit scores.
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