Repairing a shoddy credit report requires time, but there are few steps you can take to expedite the process. Here’s what to do if you’re hoping to give your score a boost FAST.
Pay down credit card debt.
One of the only surefire ways to give your credit score a quick boost is to pay down any existing debt you may be carrying on a credit card. This will have an immediate (and positive) impact on your credit utilization ratio, which essentially involves how much credit you are using versus how much is actually available to you.
Keep in mind, the move will only work if you pay down the debt then refrain from running up a big balance on the card. Issuers report current balances along with your payment status on a monthly basis so it won’t take long for these new charges to catch up to you.
Check your credit report.
Errors on credit reports are actually more common than you may think so combing over your credit report can benefit your score if it is indeed being pulled down by someone else’s negative information. If it isn’t, the exercise can be instrumental in illustrating what you need to do to improve your creditworthiness. Most versions of reports point out what items are particularly detrimental to the person’s score.
Everyone is entitled to a free credit report from one of the major bureaus – Experian, Equifax or Transunion – each year, which can be obtained by visiting www.annualcreditreport.com.
Commit yourself to making all your payments on time.
A first missed payment can cause a great credit score to fall 100 points or more. The good news is, so long as you don’t follow up this misstep with an even bigger one, you won’t feel the full effect for the entire seven years it takes the line item to age off your credit report. Begin to undo the damage by getting current on your payments and re-committing yourself to making all future ones on time.
To avoid unconsciously missing a due date, enroll in auto-pay by linking your credit card and debit card accounts. You also might be able to do enroll for these options via your issuer’s iPad or mobile app.
Lenders Still Want Great Credit Scores for Mortgages
These days, many consumers are likely finding it easier to obtain many types of credit, as lenders have significantly slackened requirements for most loans and credit cards. However, the qualifications to obtain a good mortgage rate remain stubbornly high across the country.
Even as credit conditions improve significantly nationwide and many financial institutions are once again broadening lending efforts, many are still being extremely tight with financing for mortgages, according to a report from the New York Times. In fact, even as subprime lending for credit cards opens up considerably, many consumers with low credit scores will find themselves extremely unlikely to even be considered for a home loan approval.
A recent study by the Federal Reserve Board indicated that consumers with a credit score of 620 willing to make a 10 percent down payment are now less likely to be approved for a mortgage than they were in 2006, the report said. Further, some were even reticent to extend financing to borrowers making a similar down payment when their credit rating was 720.
This is because most lenders are still extremely gun-shy about lending large sums of money to anyone but the most qualified borrowers, the report said. In many cases, those who are approved for a home loan will also pay far higher rates on the mortgage than those who have top-notch credit scores, even as the average interest rate has hovered below 4 percent for some time now.
“If you don’t have good credit, you’re not going to get that crazy low rate,” Deborah MacKenzie, the director of counseling at the Stamford, Conn., nonprofit the Housing Development Fund, told the newspaper.
Typically, the only way consumers can improve their credit ratings so that they can qualify for a home loan is by being smarter about managing their various lines of credit, including keeping credit card balances low and making all payments on time and in full. These are the two biggest factors comprised in a credit score. However, consumers can also be hurt by applying for too many new lines of credit within a short period of time, so avoiding this ahead of shopping around for a mortgage can be crucial to maintaining good credit health as well.
Credit Report Repair
If you have any questions about your credit report or would like to find out how Credit Firm can help you improve your credit history and increase your credit score please contact us.
by: Michael Creditfirm.
Many Americans are still grinding through life with Bad Credit. In fact, over 110 million Americans (50% of the population with credit files) have had their credit file negatively affected by the recent economic crisis according to Business Wire. So how do you know which Credit Repair company to choose when looking for help in improving your credit report?
Going through life living with bad credit, many Americans struggle repaying high interest loans and making minimum monthly payments on their credit cards, barely covering their interest charges which can be as high as 29.99%. Paying more money to rent then they would to own because they don’t qualify for a mortgage based on their credit history.
Good credit can save you thousands of dollars by allowing you to qualify for low interest rate mortgages, auto loans, credit cards, and more. Unfortunately, most people choose to live with bad credit rather than be proactive and make a change to improve their credit.
Choose to be proactive and fix your bad credit, it’s time to get serious about credit repair. CreditFirm.net has helped thousands of clients qualify for low interest rate mortgages, auto loans, credit cards, and more, by improving their credit scores. Let CreditFirm.net guide you down the journey toward fixing your bad credit. We’re not your typical credit repair service. With 15 years of credit repair experience, we have helped thousands of clients increase credit scores and improve credit reports. Results and customer satisfaction are of the utmost importance for us, that is why we are always eager to help and answer any questions which you may have.
CreditFirm.net will never ask you to pay for any credit repair services which we have yet to complete. This is why we offer a FREE Credit Consultation with a qualified credit consultant who will:
Help you obtain your FREE credit report and go over it
- Explain what is inside your credit report. (both positive and negative)
Explain what a credit score is and how it is calculated
- Explaining the different types of credit scores and the metrics used in calculating them.
Create a Custom Action Plan
- A guide for you to follow which will outline the necessary steps in order to improve your credit score.
- Different Clients have different goals and no 2 situations are exactly alike. This is why we treat every case on an individual level. We are not a credit repair factory like many of our competitors, all of our work is custom.
One service level
- Unlike our competitors, we don’t confuse you with different levels of service offering different credit repair techniques. We have one service level, we utilize every tool we have and we only have one speed, FAST. We do everything we can, as fast as we can, to help you improve your credit and reach your goals.
- We follow the Credit Repair Organization Act (CROA) to the tee. We do not offer guarantees because the CROA prohibits such practices, but we do promise first-rate service, an attention to detail, and our dedication to improving your credit report and score.
We want you to be confident in your credit repair decision and let our results speak for themselves. This is why our clients enroll in our credit repair service for distinctive monthly servicing periods and pay only for the credit repair services which have already been performed and delivered.
by: Michael Creditfirm.
A credit score is a number which is based on a statistical analysis of a person’s credit file, to represent the creditworthiness of that person. A credit score is primarily based on credit report information typically sourced from the credit bureaus. A credit score is primarily based on credit report information, typically from one of the three major credit bureaus: Experian, TransUnion, and Equifax.
Different Types of Credit Scores
*FICO Fair Isaac Co.
*FICO has more than one formula for determining a credit score.
*The 3 most common FICO Algorithms are:
- FairIsaac 2.0 (used by Experian)
- Beacon 5.0 (used by Equifax)
- FICO RiskScoreClassic 04 (used by TransUnion).
Don’t let the different credit scores confuse you, they all follow the same basic algorithm in determining your creditworthiness.
By improving the factors which are used to calculate the credit score, Credit Firm helps increase your credit score.
Why do you need a good credit score
Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses due to bad debt.
Lenders use credit scores to determine who qualifies for a loan, at what interest rate, and what credit limits.
Credit scoring is not limited to banks. Other organizations, such as mobile phone companies, insurance companies, landlords, and government departments employ the same techniques.
Sign Up Now and Raise your Credit Score! Let Credit Firm.net help you qualify for a mortgage, auto loan, or lower interest rate.
Save money by increasing your Credit Score.