Repairing Your Credit Score The Right Way
Soon after you find out about all the negative information from your credit report, take measures to remove it especially when the negative information is not really yours. You can do this when the duration for a delinquency or bankruptcy has expired.
These are cases in which even after you have negotiated with your creditor and after having an agreement of settling everything with a fee with the understanding that either “Paid” or “Paid as agreed” will be entered on your report, your report shows that you are still in debt.
When this happen, you must take immediate action to remedy this problem with your credit score. First thing you can do above all things is to send a dispute letter to the credit bureaus and request that they delete such erroneous entry from your report.
You may send this letter with the use of fax, certified mail or standard first class mail.The standard first class mail is your best bet, considering you will be getting a mailing certificate guaranteeing that they have received your letter. You must have a copy of each document you send as a proof.
Next appropriate thing to do is to apply for a credit card, a departmental store or gasoline card, and then use it with caution. The deposit you pay to the credit card issuer will equal your spending limit. Given that the main reason behind getting a credit card is to repair your credit score, see to it that you don’t spend beyond 30 percent of your limit.
The reason is so obvious. The less you spend, the higher the increase on your score. The more frequent you go beyond 30 percent limit, the lower your score plummets. It’s suggested that you remain within such boundary so as to boost your credit score safely.
Categories: Credit Score Articles Tags: credit card, credit score repair, first, fixing credit score, limit, send
You Credit Score Must Be Better Than Subprime
Credit scores range from 300 to 850. Precise details about a credit score is not really known by many, but what people know is that the lowest credit score possible is 300, with 850 being the highest.
Majority of lenders deem 620 the bottom cut off for prime loans, the dividing line between fair and bad credit. That being said, having a credit score a bit above it may make you panic, for instance, 630. It’s still actually average, but it falls on the low side or below average. Nevertheless, a 630 score is rather more acceptable than being in the “subprime”.
This credit score would possibly be deemed a sensible credit. You won’t instantly be denied loans, but you will surely be repelling the best rates. Securing loans could also be very difficult at this certain level. The interest rates are always pretty high and the conditions are far less than ideal.
As a matter of fact, if you plan to buy or refinance a home or a brand new or used car, you are bound to have a higher mortgage rate. Thus, you are better off improving your credit score.
If your credit score marks a little above 620, you may have done some financial mishaps. This may take place if you own credit cards that are maxed out. Spending beyond your credit limit makes it even more damaging for your credit score. When your credit cards are maxed out or go beyond the credit limit, you give potential lenders the vibe that you don’t have the ability to live within your means. The money you make is not enough, so you use your available credit to get what you want or need. That’s probably what happens, or so they think. This can badly affect your score.
You should never forget that your credit score depends on all the data in your credit report. Thus, it’s a must that you always monitor it.
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Categories: Credit Score Articles Tags: above, above average credit score, average credit score, credit cards, lenders, limit, subprime credit score, subprime loans
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
How do you lower your credit limit without lowering your overall credit score?
Question by Tim: How do you lower your credit limit without lowering your overall credit score?
I have only have one revolving credit card, and I have a very high credit score. Because of this overall score they subsequently increase my credit line, even though I don’t ask for or use this revolving line of credit. Question? I have been told if you ask for a credit line decrease they lower your overall credit score? Why? What can you do to minimize a lowered credit score?
Best answer:
Answer by missoctober003
I say keep the cards open because with a low balance on the card and a high limit it definitely makes your credit look better. Don’t worry about having that much credit in your name unless you plan on purchasing a loan from a bank. You aren’t using the card anyway, right?
Add your own answer in the comments!