Credit Report Repair Advice
Can You Acquire Good Credit Overnight? You Bet
By Omar M. Omar
Your credit file may not reflect all your credit accounts. Although most
national department store and all-purpose bank credit card accounts will be
included in your file, not all creditors supply information to credit
bureaus : Some travel, entertainment, gasoline card companies, local
retailers, and credit unions are among those creditors that don't.
If you've been told that you were denied credit because of an "insufficient
credit file" or "no credit file" and you have accounts with creditors that
don't appear in your credit file, ask the credit reporting agency to add
this information to future reports.
Although they are not required to do so, many credit bureaus will add
verifiable accounts for a fee. However, understand that if these creditors
do not report to the credit bureau on a regular basis, the added items will
not be updated in your file.
Sample Letter to Add Positive Information to Your Credit Record
Date
Credit Bureau Name
Address
City, State Zip
To Whom It May concern :
After reviewing my recent credit report from your company, I noted that my
credit report does not include information that I know is important to
providing a complete picture of me as a credit using consumer.
Therefore, I request that you add the following account information on my
credit file.
Creditor :
Address :
Account Type :
Date Opened :
Credit Limit :
Balance : ( If it's an open account )
If there is any fee for this service or for any additional information you
might need from me, you can reach me at ( your phone number ).
Thank you in advance for your unparalleled assistance.
Sincerely,
your signature
Your Name
Address
Social Security Number
Date Of Birth
For Example :
Suppose you had bought a used car from a used car lot 4 years ago. And the
cost for your used car was $8000.00, which you have paid off in 2 years. If
you can show on your credit report the auto loan you've paid off, that can
dramatically change your credit report. Therefore, what you can do is
contact the your used car dealership and demand for your account to be
reported.
Or you can request a copy of your auto loan payment history to be mailed to
you so you can mail it yourself to the credit bureaus. It's important to ask
yourself why a certain account was not reported on your credit report.
In most cases small businesses avoid reporting to credit bureaus because it
cost businesses money to report your payment history to credit bureaus every
month. To put it simply, every business who wants to report their clients
account payment history will have to subscribe to these credit bureaus and
the subscription cost the business money.
About The Author
© Copyright. http://www.deleteuglycredit.com
Omar M. Omar is the owner of http://www.deleteuglycredit.com. The website is
dedicated to provide credit consumers with information about their credit
right and how to dispute inaccurate information on their credit report. Omar
M. Omar is also the author Of "The Credit Repair Bible" book.
You have permission to publish this article electronically or in print, in
your Newsletter, on your website, or in your E-Book, as long as the author's
Resource Box is included with the article.
omar@deleteuglycredit.com
Article Source: http://EzineArticles.com/
1. Get a copy of your credit report
Obtaining a copy of your credit report is a good idea because if there is
something on your report that is incorrect, you will raise credit score once
it is removed. Make sure you contact the bureau immediately to remove any
incorrect information.
Your credit report should come from the three major bureaus: Experian, Trans
Union and Equifax. It's important to know that each service will give you a
different credit score.
2. Pay Your Bills On Time
Your payment history makes up 35% of your total credit score. Your recent
payment history will carry much more weight than what happened five years
ago.
Missing just one months payment on anything can knock 50 to 100 points off
of your credit score.
Paying your bills on time is a single best way to start rebuilding your
credit rating and raise credit score for you.
3. Pay Down Your Debt
Your credit card issuer reports your outstanding balance once a month to the
credit bureaus. It doesn't matter whether you pay off that balance a few
days later or whether you carry it from month to month.
Most people don’t realize that credit bureaus don’t distinguish between
those who carry a balance on their cards and those who don’t. So by charging
less you can raise credit score even if you pay off your credit cards every
month.
Lenders also like to see a lot of of room between the amount of debt on your
credit cards and your total credit limits. So the more debt you pay off, the
wider that gap and the better your credit score.
4. Don’t Close Old Accounts
In the past people were told to close old accounts they weren’t using. But
with today's current scoring methods that could actually hurt your credit
score.
Closing old or paid off credit accounts lowers the total credit available to
you and makes any balances you have appear larger in credit score
calculations. Closing your oldest accounts can actually shorten the length
of your credit history and to a lender it makes you less credit worthy.
If you are trying to minimize identity theft and it's worth the peace of
mind for you to close your old or paid off accounts, the good news is it
will only lower you score a minimal amount. But just by keeping those old
accounts open you can raise credit score for you.
5. Stay Out Of Bankruptcy
Bankruptcy is the single worst thing that will destroy your credit score.
Bankruptcy will lower your credit score by 200 points or more and is very
difficult to come back from.
Once your credit score falls below 620, any loan you get will be far more
expensive. A bankruptcy on your credit record is reported for up to 10
years.
The reality of a bankruptcy is it will limit you to high-interest lenders
that will squeeze out high interest rate payments from you for years.
It is better to get credit counseling to help you with your bills and avoid
bankruptcy at all costs. By getting credit counseling instead of declaring
bankruptcy you can raise credit score over a much shorter period of time.
Copyright © 2005 Credit Repair Facts.com All Rights Reserved.
Gary Gresham is a mortgage loan officer and the webmaster for http://www.credit-repair-facts.com
He offers you credit information, debt elimination programs and informative
facts that give you the knowledge to correct your own credit and credit
report. For more credit related articles go to: http://www.credit-repair-facts.com/articles_1.html
Article Source: http://EzineArticles.com/
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