Quick And Easy Credit Repair Strategies For Everyone

Some credit repair strategies take time. Others require a precise knowledge of the law. But there are others that can be implemented quickly and easily by anyone. If you want to boost your scores there is nothing from stopping you from taking action today. Here are our all time favorite quick and easy credit repair strategies for everyone! Once upon a time it was enough to make your payments on time.

This is no longer the case. The FICO credit scoring model is designed to predict the risk of lending money, and it places great weight on your credit card balances. If you run up your balances your credit score will be lowered as a warning to lenders that you may be a risky loan candidate. Depending on the overall content of your credit report your card balances can swing your scores by as much as 150 points.

Store cards and consumer debt, like furniture store loans, are of no positive value for your credit scores and may be a big negative depending on the age of the account and your balance. The FICO scoring model has a built-in bias against this type of debt; it is typically expensive and may come with risky terms like a delayed repayment plan. There may be worthwhile discounts offered with this type of debt, but while you are working on your credit repair plan it is best to steer clear.

If you do not have open accounts you will not reach your credit score goal. Many people starting a credit repair program find themselves in this position. Removing errors from your credit report will lift the weight that is holding down your scores. But this is not enough. You must have positive credit to get the increase you want. If you can not get regular credit cards get secured cards. They are the perfect credit repair tool.

If you are rebuilding your credit from scratch two secured cards could be worth 100 points within six months. If you have a friend or family member willing to help you get your credit repair effort started they could add you to one of their credit cards as an authorized user.

This is not a long term alternative to building good credit of your own, but it can provide a wonderful score boost and help you get on your feet. The donor card must have an excellent payment history, be at least two years old, and have a reasonably low balance relative to the limit. When it shows up on your report you will inherit the score benefit of the card.

All new credit activity, with the exception of authorized credit cards, will lower your scores initially. You may need to open new credit cards for your credit repair program, but be aware that the first few months they show up on your report your scores will drop. This is true of everything from inquiries to mortgages. The reason is simple.

The FICO scoring model sees new accounts as untested debt and inquiries as a looming threat. If you are planning an important purchase in the future think of your credit today. When in Doubt, Reach Out! You are not alone. If you are confused, or just too busy to focus on improving your credit pick up the phone and call a reputable credit repair service. A professional credit repair service will examine your reports, identify your strengths, deficiencies, and score optimization opportunities. Your credit is too important to ignore. Become proactive and you will reach your goals before you know it!

Possible scores range from 300 to 850 on the FICO system while other credit scoring programs have other ranges. Credit scores do not measure income. Your score does not go up because of your income increases. You can make a low income and have terrific credit, and you can also be rich and have a credit score that’s in the dumper. The real issue is how you pay your debts. You don’t need perfect credit to get a mortgage or any other type of financing.

It’s expected that only a tiny number of people will have stratospheric credit scores, and that’s okay. Many lenders offer their best rates to borrowers with credit scores in the 700 range and above. Related: What credit score do you need to rent an apartment, Importantly, different lenders have different credit score standards. Lender A may award its best rate to someone with a 720 score while Lender B might require 740. Because different lenders have different credit standards, it pays to shop around for rates.

Mortgage rates for those with top-level credit run about 1.5 percent lower than those for borrowers with fair credit. MyFico has a calculator which shows how credit scores can relate to mortgage rates. The usual rule applies: lower scores equal higher rates. For example, a borrower with a 620 credit score might pay 5.8 percent, while a borrower with a 760 score could have financing at 4.25 percent. Interest rates on five-year auto loans run approximately 11 percent less for borrowers with excellent credit than those with poor credit scores.

In the world of auto financing, credit score categories are divided into five groups, according to Experian. At the end of 2017, according to Experian, super prime borrowers were paying 3.17 percent for new car loans. And deep subprime borrowers, Their typical new car financing was priced at 13.76 percent, a difference of nearly 11 percentage points, or 1100 basis points in finance speak.

30,000 auto loan the difference in costs is significant. Wouldn’t you rather pay 13 percent than 23 percent, Credit card rates typically run between 13 and 23 percent, depending on your credit score. As with other forms of borrowing, credit card interest levels are related to your credit scores. Higher credits scores will produce lower interest rates. Regardless of your credit standing, even if you have an 820 credit score, the best way to deal with credit card interest rates is to avoid them.

Pay off your balance each month and avoid steep credit card interest rates. Peter G. Miller, author of The Common Sense Mortgage, is a real estate writer syndicated in more than 50 newspapers nationwide. Peter has been featured on Oprah, the Today Show, Money Magazine, CNN and more. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.