How Improve Credit? 3 Easy Steps to Credit Success
For the last 10 years my credit has been on a roller coaster ride -moving fast in up and down direction.
The question " how improve credit" has been lingering in my mind every time my credit score got dangerously low.
Contrary to the general misconception fixing bad credit doesn't necessarily take years and strict financial discipline.
In order to achieve faster results, however, you have to know the inner workings of the credit system-how creditors determine if you are worthy of a loan, what is the formula that the credit bureaus use for your credit score, what factors are deemed most important by the credit bureaus.
Once you have the answer to these questions, you can proceed to a step-by-step credit restoration.
There are few things to keep in mind before you start your quest for credit repair.
1 Credit scores are the result of complex mathematical algorithms.
These algorithms produce a three digit number which creditors and lenders use to label you anywhere between " risk-free" to "totally unreliable" on the scale of financial credibility.
Knowing the credit score formula will let you concentrate on the things that creditors see as more important factor in your record.
It's like getting a good or bad grade on your finals in college.
The more information you have about the how the test will be graded, the better your chances of success.
2 The credit system is imperfect.
Why? First of all, there is a lot of miscommunication between creditor and credit bureaus.
Certain pieces of information are never reflected in your credit score.
In other cases creditors can report to only one of the credit bureaus which produces differences in the credit scores provided by the three major bureaus.
The driving force behind your credit report is...
bureaucracy.
So many employees and so much paperwork surrounding your credit score often result in mistakes.
This is not necessarily bad, because sometimes you can take advantage of the imperfection of the system.
3 The credit system can be "outsmarted".
The negative items on your account are not " set in stone".
You can pay them off and get some positive change on your credit report.
Or you can pay a portion of the debt after negotiation with the creditor or the collection agency, have them removed from your report after that and boost your credit with more than 100 points.
There are many loopholes that allow you to gain points even if you were delinquent for a long time, or even if you paid just a fraction of your debt.
Loopholes in the system allow many people to fix their credit without seeking expensive professional service.
"How fix credit?" The measures you have to use depend on your specific situation.
However, you have pretty good chances for fast credit repair if you take the time and learn more about the credit system itself and the credit tricks that have proven to work.
The question " how improve credit" has been lingering in my mind every time my credit score got dangerously low.
Contrary to the general misconception fixing bad credit doesn't necessarily take years and strict financial discipline.
In order to achieve faster results, however, you have to know the inner workings of the credit system-how creditors determine if you are worthy of a loan, what is the formula that the credit bureaus use for your credit score, what factors are deemed most important by the credit bureaus.
Once you have the answer to these questions, you can proceed to a step-by-step credit restoration.
There are few things to keep in mind before you start your quest for credit repair.
1 Credit scores are the result of complex mathematical algorithms.
These algorithms produce a three digit number which creditors and lenders use to label you anywhere between " risk-free" to "totally unreliable" on the scale of financial credibility.
Knowing the credit score formula will let you concentrate on the things that creditors see as more important factor in your record.
It's like getting a good or bad grade on your finals in college.
The more information you have about the how the test will be graded, the better your chances of success.
2 The credit system is imperfect.
Why? First of all, there is a lot of miscommunication between creditor and credit bureaus.
Certain pieces of information are never reflected in your credit score.
In other cases creditors can report to only one of the credit bureaus which produces differences in the credit scores provided by the three major bureaus.
The driving force behind your credit report is...
bureaucracy.
So many employees and so much paperwork surrounding your credit score often result in mistakes.
This is not necessarily bad, because sometimes you can take advantage of the imperfection of the system.
3 The credit system can be "outsmarted".
The negative items on your account are not " set in stone".
You can pay them off and get some positive change on your credit report.
Or you can pay a portion of the debt after negotiation with the creditor or the collection agency, have them removed from your report after that and boost your credit with more than 100 points.
There are many loopholes that allow you to gain points even if you were delinquent for a long time, or even if you paid just a fraction of your debt.
Loopholes in the system allow many people to fix their credit without seeking expensive professional service.
"How fix credit?" The measures you have to use depend on your specific situation.
However, you have pretty good chances for fast credit repair if you take the time and learn more about the credit system itself and the credit tricks that have proven to work.
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