How to increase credit score? You are not the first person to ask the question. Currently more than 35 million Americans have less than perfect credit and face all kinds of issues related to low FICO score. Turned down loan applications, denied employment,exorbitant interest rated, higher insurance premiums, security deposits on utilities-these are just some of the side effects of having a low credit score. In a world where so much emphasis is put on the three digit FICO, having a good credit seems like a simple necessity.
Luckily, fast credit repair is possible. Here are 3 simple steps that will help you understand how the process works.
1. The inner workings of the credit system.
Educate yourself on the inner workings of the credit system. This is the first and foremost rule of fast credit repair. The more you know about how the system works, the better you chances to raise credit fast. How is your credit score calculated? Why are there differences among the credit reports issued by TransUnion, Equifax and Experian? Which are the 2 factors in the FICO algorithm which account for more than 70 {da74ea48cec7d1c659e4125ffe517180d7bd6cbbe5631d32f11d21c45900f39b} of your final score? How to handle installment and revolving credit? How to achieve the perfect balance/ limit ratio on your credit cards even if you don’t have the cash to pay balances? How to dispute erroneous, incomplete, inaccurate, outdated, questionable and unverifiable information in your report? How to request validation of debt on all items that are more than 12 months old? How to dispute with credit bureaus and collection agencies? How to dispute with original creditors? How to remove errors in your report within 48 hours with the Rapid Rescore strategy? How to negotiate with collection agencies and settle for the minimum possible amount? The answers to such questions can open your eyes for the reality in the credit world and the various possibilities for a fast and painless credit repair.
2. The appropriate strategies.
Different credit situations require different set of credit strategies. Let’s say you have 2 current late payments on your mortgage that brought your score down with almost 100 points. What do you do? First-get current with your payments. Next-send a goodwill letter to your creditor explaining the circumstances surrounding the late payment(health problems, family issues, recent lay off etc). You do have a sob story, right? Be polite and apologetic and promise to be a good customer in the future if the creditor removes the late payments from your credit record. Being “nice”, however, will not help you with collection agencies. A firm approach and knowledge about your legal rights under FCRA and FDCPA is what will help you in the collection department. First-request validation of debt. If the credit bureau provides the proper documentation, start negotiating for a small settlement amount. Keep in mind that collection agencies still make a handsome profit out of you even if you settle for 20 {da74ea48cec7d1c659e4125ffe517180d7bd6cbbe5631d32f11d21c45900f39b} or less of the amount owed. Promise to pay the settlement amount ONLY IF the collection agency removes the item from your credit record. If the collection agency tries to intimidate you, remind them that you are well aware of your legal rights (the Fair Collection Practices Act) and threaten to sue for harassment. In other words- knowledge about your legal rights and a more aggressive approach is the right strategy when it comes to collection agencies. In a nutshell-choose your strategies carefully depending on your specific credit situation
3. The “Don’t Give Up” spirit.
I can’t emphasize this enough-persistence is vital. Disputes, negotiations, debt validation requests etc-more than likely some of your efforts will end up with failure. The key is to dust off and try again. The only way to truly fail in the credit repair department is to stop trying.
How to increase credit score? The answer is simple – educate yourself on the inner workings of the credit system and the various loopholes in it. Once you start thinking outside the box, you’ll be surprised to find how easy credit repair actually is.