Long Term Credit Repair Plan - Tips on How to Repair Your Credit in a Year
When it comes to fixing your credit nothing really happens to fast and you need a long term plan.
This plan should do a few different things in order to get your FICO scores up.
However many people are unsure ow to actually get this done and feel confused.
Below you will see a brief plan to improve your credit over the long term How To Repair Your Credit In a Year First off you will need to look at your current levels of consumer debt and develop a plan to reduce it as much as possible within a year.
To much debt will drop your scores in two ways.
First once you take your balance over 45% of the account limit you look risky and your scores will fall.
Secondly to much debt can be hard to pay and can cause you to have late payments on your credit report, these are FICO score killers! How To Get Some Good Accounts Listed Secondly You need a plan to have good accounts added to your profile.
This can be hard to do because most lenders require good FICO scores to get approved.
However a secured credit card is easy to get regardless of score and reports like a normal account.
These cards will however require you to give the lender a security deposit that is equal to the amount of the cards balance.
If you default on your account the amount you owe will be deducted from the security deposit, the difference will be returned to you.
As time goes by these cards will help elevate your scores to the point you can apply for smaller non secured accounts like gas cards and department store cards.
Next Remove The Negative Information Third you must get any negative and damaging items removed from your credit report.
Items like late payments, charged off accounts, collection accounts and other derogatory items will drive your scores down fast.
To get them removed you are going to need to properly dispute them with the reporting agencies.
This is easy to do and requires that you list specific problems with the negative accounts and ask the bureaus to validate the information with the original lender.
The way you do this is by sending a credit dispute letter listing what you believe to be the problem, when they get your letter the bureaus will open an investigation.
If the original lender fails to provide validation then the account must come off your report.
This plan should do a few different things in order to get your FICO scores up.
However many people are unsure ow to actually get this done and feel confused.
Below you will see a brief plan to improve your credit over the long term How To Repair Your Credit In a Year First off you will need to look at your current levels of consumer debt and develop a plan to reduce it as much as possible within a year.
To much debt will drop your scores in two ways.
First once you take your balance over 45% of the account limit you look risky and your scores will fall.
Secondly to much debt can be hard to pay and can cause you to have late payments on your credit report, these are FICO score killers! How To Get Some Good Accounts Listed Secondly You need a plan to have good accounts added to your profile.
This can be hard to do because most lenders require good FICO scores to get approved.
However a secured credit card is easy to get regardless of score and reports like a normal account.
These cards will however require you to give the lender a security deposit that is equal to the amount of the cards balance.
If you default on your account the amount you owe will be deducted from the security deposit, the difference will be returned to you.
As time goes by these cards will help elevate your scores to the point you can apply for smaller non secured accounts like gas cards and department store cards.
Next Remove The Negative Information Third you must get any negative and damaging items removed from your credit report.
Items like late payments, charged off accounts, collection accounts and other derogatory items will drive your scores down fast.
To get them removed you are going to need to properly dispute them with the reporting agencies.
This is easy to do and requires that you list specific problems with the negative accounts and ask the bureaus to validate the information with the original lender.
The way you do this is by sending a credit dispute letter listing what you believe to be the problem, when they get your letter the bureaus will open an investigation.
If the original lender fails to provide validation then the account must come off your report.
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