Are you planning to apply for an auto or mortgage loan, but fear being turned down by creditors? Do you want to raise your FICO because a potential employer is conducting a mandatory credit check? Do you simply want to get rid of debt and start with a clean credit slate? Whatever your specific situation is, fixing credit score is always a good idea.
Here are 3 possible routes that will take you to the land of "better credit".
1 The hard way.
This is the most popular and most laborious way to raise credit score.
According to the mainstream credit advisers credit repair can only be achieved through careful budget planning, financial discipline and patience.
In order to succeed you have to take a look at your income, track monthly expenditures, curb any unnecessary spending and and start paying off your debt.
Slowly but surely you'll work your way up to a better credit.
There are various caveats associated with this long term approach to a better credit.
For example, most of the people that need better credit score can't wait years to see the positive results.
They need that house or brand new car NOW, not later.
Besides, people with outstanding credit debt have to spend literally decades of their lives paying off what they owe.
Last, but not least-paying off your debt in full can sometimes harm your report and lower your score.
For example, paying off a collection that is more than 2 years old will upgrade the account status to current.
The bad debt (although now paid) will continue to influence your score adversely and will stay on your report for additional 7 years.
2 The expensive way.
A lot of people feel helpless and overwhelmed when it comes to credit repair.
They turn to credit repair services and pay exorbitant fees hoping to see their score skyrocket soon.
What are the problems associated with this type of credit repair? First, there are many scam services out there which prey on the huge crowd of misinformed people.
Typical tell-tale signs that you are dealing with scam services is when they ask for the money upfront or when they don't inform you of your legal rights.
The second problem is that these companies simply do the things you can do yourself IF you had enough credit knowledge.
3 The smart way.
This is the fastest and most painless way to a better credit.
The only requirement-knowledge about the credit system and the various loopholes in it.
Do you know what's the formula behind your FICO score? Which 2 credit factors account for more than 30% of your final credit score? How many points does each type of negative item take away from your credit report (bankruptcy, foreclosure, loan default, collection, legal judgment, late payment, credit inquiry etc)? Do you know how to get credit bureaus, collection agencies and original creditors to delete items from your record? Do you know how to file Rapid Rescore and remove mistakes on your report within 48 hours? Do you know how to bring your credit card balances to the "healthy zone" (30% balance to limit ratio) without paying off your balances? How to settle with collection agencies for less than 20 % of what you actually owe? In a nutshell-the more you know about the credit system, the faster you will see positive credit results.
Fixing credit score is not than hard.
Knowledge about the credit system and the little known secrets in it will boost your credit in no time.
Once you start thinking outside the credit box, you'll be surprised to find how easy credit repair actually is.