How To Rebuild Your FICO Score
It is possible to rebuild your credit score if you follow some basic guidelines. Rebuilding of the FICO score is like loosing weight, there are a few things you can do in the short term that will raise your credit score, but like weight control there need to be some change in your financial lifestyle to see long term effects.
There are different guidelines for people who their FICO credit score has been hit by really bad credit ‘hurricans’ like bankruptcy and foreclosure, this review for how to rebuild your credit score, is for the more mild cases of low credit that needs to be fixed.
The FICO score is a picture reflecting your financial data, which are correct only for the time the picture is taken. Once you pose a little differently, change the light, the location, or the distance the next picture is taken, the ‘same old you’ may look differently at the next picture. And this is exactly what FICO score rebuilding is all about – Changing some financial parameters to raise your FICO score some more points.
Improve Your Personal Creditworthiness
Dont Be Late On Payments – This is the most simple tip you should follow to rebuild FICO score. For most bureaus ‘late’ means falling 30 days behind the due date. The credit score counts how many days late you are on any payment so be in charge! When the 15 days ‘late fee date’ is getting close pay them first, avoid reaching the 30 days deadline.
Detect Inaccurate Information – As a credit customer you are entitled to observe once a year your reports – free. You might be surprised to find in the credit reports entries that do not belong there. Even a few inaccuraies like amount of credit limit, can damage how your report looks.
In these free annual FICO reports you do not get the score – Just the detailed report you can examine thoroughly. When you find inaccurate information you can either hire professional help ($$$) it may be a company or hire an attorney to remove them or do the simple correction process on your own to rebuild your FICO score with a 1-2-3 ‘how to fix your credit guide’ (like this program) .
Get Rid Of Any Left Overs– You may find in those reports old unpaid bills and payments that you and the company you owe money to, has forgotten about.. Maybe old bills you had dispute over with some company and were left untouched. In this process what is important is to rebuild trust and ‘clean behind you’ any unpaid bills and payments, even if the companies you owe money never meant to collect it.
Keep Credit Balance Lower Than 50%– Some will say keep lower than 30% of your credit balance limit for each card. Spread your credit debts so they will not be all concentrated on one card. It is better for you to have a $1000 balance on 5 cards each, rather than a $5000 balance on one card, especially if the limit on that card is $5000.
Plan Ahead, Have Paitence – Improving FICO score takes time. All the negative marks you have on that score will start to fade away once they are taken care of and paid fully. If you know you will request a home mortgage within few month, and think you will not get approved because you have bad credit, then you need to start acting now!
Be active, start searching for ways to close open ends, you will start to see things improve within the first year. If you need assistance, you can use credit repair university to guide you through and automate the process to shorten the improvement schedule plan. See here credit repair university)
Increasing The Credit Line – A simple old ‘financial trick’ is to change the ratio of unused credit by requesting the credit company to raise the credit limit. Think of it this way, if your credit limit is $2000 and you use $1000, then you are at the 50% usage. If the credit company raises the limit it allows to $3000 then your usage drops to 30% which is very lucrative for the FICO report. Do not spend more money other wise you are in a slippery financial hillside.
Rebuild A Credit Salad Meal – Having only one credit line (either mortgage, credit card or car loan) is suspicious for the credit bureaus and it will reflect in a lower FICO score. For your score to be rebuilt they would like to see that you can handle different versions of credit types long term (mortgages) middle terms (car loans) and revolving payments (credit cards).
Start rebuilding your credit today if you know you will need a mortgage next year. If you use only one credit lines, try to add one more type to your credit salad… Having two types of credit lines (paid perfectly) will reflect in an improved score and you will get better mortgage rates.
Improving Your Credit Is Possible
Many people get despaired when they start thinking of credit repair. This is because people prefer to turn away from confronting their financial troubles rather then acting to change them. Most people do not believe a substantial change can be done, but the truth is not like that.
You can expect to have an improvement in the next few month in your score! Even a raise of FICO score by 50 points can save you thousands of dollars on credit payments and mortgage payments! Doing it alone is possible but help in those financial matters is reasonable.
There is a saying that if you think education is expensive, try ignorance… invest a little to raise your score.
So What Is Your Next Step?
Every week you are wasting money.. sending dozens of dollars to the rich credit companies, who relay on you to keep doing NOTHING.
If your score is below 700, you might want to do something about it – get this ‘Credit Repair University’ which will save you money and time.
Yes, you might need to invest a small sum to get a grip of things.. So if you thought education is expensive.. try ignorance..
You are probably paying thousands of dollars per year in fees and interests to credit companies which could be going straight to your pocket.
So do your math… and take action NOW.