Tips On Safely Fixing Your Credit Score
Take immediate action in getting rid of negative information from your credit report as soon as you possibly can, especially when you have found out that such negative information is not yours to begin with.
Additionally, do this in the event that for a delinquency or bankruptcy has expired.Also, act on it when after your have already disputed negative information, it can still be seen on your report. Furthermore, you must address it after negotiating with your creditor and made an agreement of settling at a fee with the understanding that either “Paid” or “Paid as agreed” will show on your report, but it is still being shown on your report that you are in debt.
In this kind of situation, you’re better off taking quick action on the damage done to your credit rating. The first thing you can do is to send a dispute letter to the credit bureaus and ask for the removal of such erroneous entry from your report.
The letters you have made could be sent through fax, certified mail or standard first class mail. The standard first class mail is an ideal choice, considering you can get a mailing certificate assuring that they have really received your letter. You should get a copy of all the documents you send for evidence.
Next thing you can do is to apply for a credit card, a departmental store or gasoline card, and then cautiously use it. The deposit you will be paying to the credit card issuer will equal your spending limit. Considering the real reason for getting a credit card is fixing your credit score, make certain that you don’t go beyond 30 percent of your credit limit.
It is actually a no-brainer. The less you will be spending, the higher the increase that will be seen on your credit score. The more you spend beyond 30 percent limit, the lower your score plummets. You’re better off keeping your spending within such boundary so as to boost your credit score safely.
Categories: Credit Score Articles Tags: credit card, credit score repair, first, limit, repairing credit score, seen
If you pay the full balance on your credit card each month do you still…?
Question by dk: If you pay the full balance on your credit card each month do you still…?
If you pay the full balance on your credit card each month, does this help to build up good credit history or score?
Best answer:
Answer by message_board_ceo
You can’t pay off debt if you don’t have debt. According to FICO, the most effective way to raise your score is to pay debt. Chase, Discover, and MBNA (now BofFA) all confirmed this by advising me to charge a small amount and paying it ALMOST entirely (leaving a small $ 3-5 balance). This would show I was an extremely low credit risk, thereby boosting my FICO score.
So I tried this method using 3 sock drawer cards, each with a credit line in excess of $ 10k. I would buy a tank or two of gas, small grocery purchases, etc. under $ 100 on each per month, then pay off 95% of the balance. My score shot up from the low 700’s to 755 in a matter of 3-4 months. Mind you I had very little outstanding debt on any of my other cards. Don’t believe me? Try it, because it most definitely will improve your score.
One more thing, keeping a card with $ 0 balance, not using it for extensive periods of time used to be a good thing but is a big NO NO these days. Why? Because creditors are very freaked out by unconsumed lines of credit that are potential sitting ducks for turning into delinquent accounts. Furthermore, unused cards are having their credit lines slashed substantially, thereby reducing your available credit, which is a major factor in FICO’s score. Expect your score to take a nosedive when Chase or Amex decides to cut your unused 10k credit line in half because you didn’t even need $ 5k, so why should they give you $ 10k?
What do you think? Answer below!
If I choose “credit” w/ my Visa check card, is it reported to Transunion, etc, like a credit card transaction?
Question by stuart m: If I choose “credit” w/ my Visa check card, is it reported to Transunion, etc, like a credit card transaction?
When you choose “credit” with your visa check card instead of “debit” and you have sufficient funds in your checking account to cover the charge, is the charge nonetheless reported to the three credit agencies as a credit transaction? I want to know because my credit report said my FICO score will increase if I reduce my debt to income ratio.
Best answer:
Answer by stephenweinstein
Neither check card transactions nor credit card transactions are reported to the three credit reporting agencies. Credit card BALANCES are reported (monthly or less often) to the credit reporting agencies, but individual transactions are not and neither are check card balances.
What do you think? Answer below!
Categories: Credit Score Questions Tags: Card, Check, choose, Credit, credit card, like, reported, transaction, TransUnion, Visa
How can I get a credit card?
Question by antoniodab: How can I get a credit card?
I am 18 and a college student. I applied for a Chase student credit card but was denied becauseof my lack of credit history. My Chase bank told me I should get a gas card or a department store credit card. I applied for a Walmart credit card but was denied that also.
How can I build my credit history if they wont let me have a credit card?
Best answer:
Answer by StephenWeinstein
First, stop applying, immediately. Now, you have a history of applying, which is worse than having no history at all.
Second, get a “secured” credit card, which is the one type that you might be able to get when you are 18 and have no history, except for a history of applying.
After you have had the “secured” credit card long enough to have a credit history, and you have gone more than a year without applying for any cards, then you might be able to qualify for a credit card. (As long as you continue to apply as often as you are applying now, you will never qualify. You may also never qualify if you do not get a secured credit card first.)
Give your answer to this question below!
Categories: Credit Score Questions Tags: answer, Best, Card, Credit, credit card, question
How can you get an actual free credit report off the internet if you dont own a credit card?
Question by Robert S: How can you get an actual free credit report off the internet if you dont own a credit card?
Best answer:
Answer by Steve P
Go to the Federal Trade Commission website. By law, you are entitled to one free report each 12 months. You’ll set up a user ID and a password. The report won’t give you “scores”, but it will show accounts, histories, inquires, etc. Just look for errors, and seek to correct incorrect information. You can’t remove factual history, just work to let it age-off.
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Q&A: I have bad credit – if I open a new business, can I apply for a credit card that has “fresh credit”?
Question by mobyisaparrothead: I have bad credit – if I open a new business, can I apply for a credit card that has “fresh credit”?
I have bad credit history – if I open a business, and apply for a credit card, will they still pull my credit and still decline me, or will they issue a new credit card under the new entity (new business?)
Also, if they do issue this new card, will good credit history of payments ever be reflected to my personal credit history if the payments on time are done under the business name’s credit card?
Best answer:
Answer by annazzz1966
Business credit is just for the business entity and not for your personal use. Any credit opened in the name of the business will remain in the name if the business and not become a part of your personal credit history.
Know better? Leave your own answer in the comments!
Categories: Credit Score Questions Tags: Bad Credit, Business, credit card