Effective Strategies To Improve Your Fico Credit Score Now
Improve Your Credit Scores.
To get the best credit and interest rates you must have the best fico credit scores. These strategies will help you improve your fico credit scores and qualify for the best mortgage rates, auto loan rates and credit cards. Implement these to improve your credit score today.
Legal Credit Repair.
You have the right to legal credit repair. If you hire a professional company to assist you to remove items from your report that are either inaccurate, improperly reporting or just do not meet the legal standards required for the credit reporting agencies to follow in reporting your credit history or you do it yourself. So the number one strategy that many people use to improve their credit scores is to dispute those items. It is an effective method especially if the you stick to it. Unfortunately, the credit reporting agencies are not eager to help you. In some cases they have been known to arbitrarily dismiss many consumers disputes as frivolous and unfounded. This deters a lot of people. Experts say much as 20% of all disputes that are submitted to the credit bureaus are arbitrarily dismissed as frivolous. That means 80% are reviewed and worked on. Chances are if you dispute the inaccuracies one or 2 more rounds that they will be properly reviewed and handled.
Reduce Your Balances and or Increase Your Credit Limits.
A second strategy almost as effective as disputing negative items on your credit report is to reduce the balances on your credit cards and or increase your limits. The balanced owed on a credit card as a percentage of the high credit limit affects your credit score. They higher that ratio the lower your score. The lower the ratio the higher the score. This factor alone can account for one client who pays his bills on time every month with a credit score of 750 while another client who also pays their bills on time every month only has a 600 score. A 750 is considered very good credit while a 600 score is fair and the consumer would not qualify for most credit programs. If they do qualify they would pay a higher costs. Paying on time accounts for 35% of your credit score. The available credit factor will account for 30% of your credit score. These two strategies alone can account for 65% of your total score.
Negotiate Old Collections and Late Payments.
Older negative items on your report have minimal impact on your fico credit score. To improve your fico credit score you want to remove these derogatory trade lines completely from the report. If you pay them off or make payment arrangements you create a new activity that make the negative item a recent activity therefore effectively lowering or worsening your score. This is the exact opposite of what your intentions may be. Improve your score by negotiating with your creditor to pay the item off at a discount and have them completely remove the trade line from your credit bureau report. You must get this in writing before you send them the money. Otherwise they have no incentive to follow through and remove the item.
Finally Strategies.
These strategies will help you improve your fico credit score allowing you to qualify for the lowest interest rates. Other strategies to remember is time. The longer an account is open the more positive points you add to your credit score. The type of accounts you have also affect your score. Mortgages and installment loans have the highest value, then major bank credit followed by national department store accounts. All other accounts, though they affect your credit score they have less of a positive impact. Use these strategies to improve your credit, get a mortgage, credit card or auto loan.
Louis J.
by: Louis Jeffries
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