Category Archives: Bad Credit Rating

How To Improve Bad Credit Rating

How To Fix Your Bad Credit

During recessionary times, it’s always a good idea to regroup and to consider the following move before jumping ahead. Particularly now, it is not a great idea to leap into the next-best thing. This is especially true if you would like to discover how to fix subprime credit. Too many of those Oldschool home mortgage brokers have nothing else to do nowadays so they are hawking the most recent credit repair cons. Do not fall for this as a means of credit report repair. If you really want to increase credit score, follow the attempted and the true techniques to fix credit.

The start of any project to clean up your credit history is to get copies of your credit file. This is critical because credit is dynamic and it changes daily. Today’s eight hundred credit report score might be 782 tomorrow. This is as you are paying your bills and charging and credit is expanding and contracting all of the time. Added to this is the indisputable fact that time has a certain factor on credit scores. Old credit isn’t as crucial as new credit. Learn more about how to fix credit
along with your credit reports from each of the 3 credit reporting companies, get the scores. You will not get these for free and as an important point, you may not get your credit reports for free either. Fed. law provides that patrons have entitlement to a free credit history each twelve months, but if you have used this free entitlement, you have to now pay for reports. Either way, make sure you get the scores.

Once received,go thru them punctiliously. Keep in mind that the credit reporting agencies have 30 days to complete an enquiry if you begin to take issue with wrong items in your credit file. This is important for several reasons and I’ll touch on most of them.

If the agency has thirty days to finish an investigation, then the result will be that they either confirm the account is correct or they are required to delete the account in question. It is in your own interests to make their job both easy and hard. Easy as you would like them to satisfy the legal requirements, but hard as you would really like anything that is a negative on your credit history stricken. How do you comply yet stay within the law?

Send all of your disputes in one letter and file the letter once. The reason for this is as you don’t need the thirty days to get interrupted for whatever reason. Once they start you do not want to give them any more time than necessary. If you piece meal information to them, they have the option of halting the inquiry till all of the corresponding information is in the file.You can fix your credit. Learn how to fix credit easily.

Send your disputes authorized Mail Return bill. Essentially make them sign for the post and keep evidence of the date they received the argument letter. This is the day they need to begin and it also marks the start of the thirty day obligation.

Include a copy of I. D. Drivers license, social security card and a power bill with your name and address will do. They need to have some evidence of who you are because if anyone asked for an enquiry into your credit file without you knowing, then your credit report will be wafting around the country. Agency officials have a responsibility to make sure you are who you claim to be. If you do not send this, they’ll ask for it and also delay the investigation.

Send any evidence, letters, notes, names, of corresponding proof with your claim. If Visa Card told you to only pay $500 rather than what you owed and they’re now saying you are delinquent, send this copy of the letter with your dispute letter. Again, do not send this stuff in segments. Bundle it all up and fire it off in one arranged package.

Dispute everything that appears to be inaccurate. Name spelling, address, work place and definitely account information. Also dispute investigations asking that you receive proof in writing that you allowed a credit investigation. If you’ve got an existing account with a lender than that lender can do an investigation anytime they want. It’s a waste of your time to dispute investigations by current banks.

Do not reply to them by e-mail or telephone. Make them do their job and e-mail is easy for them and quicker than receiving their results by mail. In fact , do not provide them with any online contact information. They don’t need it to obey the law and you aren’t needed to provide it.
You are going to be sending one or two dispute letters, but they can’t be redundant. You can’t keep disputing the same thing over and over. You have got to come up with more evidence, one more reason, a different interpretation of the law. Keep good records and do not give up. You may hear from the agencies they are finished with their investigation. Period. That’s not the end and it doesn’t mean that you are finished. Stay the course till yogurt the results that you desire.

How to Improve Credit Rating – Boosting Your Credit Score in a Hurry is Easy!

Gressly Stevens asked:

If you are looking to get your credit score to go from very bad to great, then you need to know what you can do to make this happen and fast. There are many things you can do to protect your credit rating and you need to know how to improve credit rating so that you can go from a horrible rating to a great rating. Credit is very important and you should know that if you have great credit door will open much easier for you when you need cash for a purchase or for an emergency. Here are some credit boosting tips for you.

1. Do not let your Credit get checked too much

When too many companies are looking into your credit it actually will cause your score to drop. When you are shopping for any type of financing or anything else that will cause you to have your credit pulled you should be the one to pull it. Pull your credit from all three of the agencies and take the reports with you to get quotes. Then, when you pick a company to go with you can let them pull your credit.

2. How to improve credit rating fast

When it comes to your credit and how to improve credit rating you need to know that the easiest way to get a higher rating is going to be to pay off some debts. However, most people think if they pay off one bigger debt it will affect their score more than paying off a few smaller debts. This is not true and you should start by paying off all the smaller debts that you are behind on first. This will boost your score faster than anything else.

3. Building Good Credit

Another thing you can do to help offset some of the bad debts you have is to get some good debts. You can get a credit card with a small limit and keep it paid off every month. Make sure you do use it, but pay it off every single month and this will help to build some credit on the positive side, which will help to boost your score.


Improve Credit Rating

Nancy M. Scott asked:

Many want to learn to raise their credit score. You’ll see those commercials on TV that say “Improve Credit Rating”, call 1-800-Credit etc. Having bad credit score can make a lot of things difficult. Getting a mortgage, a loan for a car and even renting an apartment all depend on your credit. These days many employers pull up a persons credit report before making a decision to hire. To improve your credit quickly, there are a few tips you should keep in mind:

Improve Credit Rating Tips

1. Look in the mirror. Not literally of course. This means you have to look at your credit and your situation. If you’ve tried to get a mortgage or an auto loan and were declined, you need to figure out how much your credit needs to improve before you will qualify for these things. Once you find out what your credit score needs to be, or the general vicinity it needs to be in, you will no how many points your FICO score needs to go up by (ex. 20,30, 100 points etc.)

2. Identify your debts, and figure out which ones affect your credit score the most. Depending on who you talk to, the order of adverse items on your credit report looks something like this:

Bankruptcy Foreclosure Repossession Loan Defaults Collections Past Due Payments Late Payments Declined Credit Credit Inquiries

You will need to take a really good look at your credit report and pay special attention to those items that affect your credit the most. As a general rule, items that are several years old have less of an impact on your credit than recent items. So you will want to pay extra special attention to recent Foreclosures or repossession than a loan default from 5 years ago.

3. Start contacting the people you owe money to. The way you approach a credit bureau or other agency depends on what you’re trying to accomplish. Here’s an example. Let’s say you want to have 1 or two late payments removed from your account at a credit agency. You will want to be polite on the phone in order to win them over. I suggest telling them why the payment was late if your reason was legitimate. If you were simply lazy or forgot to pay on time, make up some story. Just make sure it’s believable. Remember to keep these keywords in your head all all times: Improve Credit Rating. That is the goal here. If you must make up a story sometimes, do it.

When it comes to collection agencies, things are a little different. These guys are supposed to have something called “Validation of Debt”. Often times they don’t even have this necessary paperwork and you can shut them up right there.

Something important to keep in mind when trying to improve credit rating, or I should say improve your credit rating is that many collection agencies make good money even if you pay off a portion of the debt you owe. However, you should only agree to pay off a portion of the debt you owe if they agree to remove the negative item from your credit report.


Auto Bad Credit -100% Loan Approval

Auto Bad Credit shows those with bad credit how to obtain a 100% guaranteed approval for a car or truck loan.

Listed below are many tips and questions that will assist you in choosing the right lender that will give you a fair deal while rebuilding your credit. I want to take a minute to review how most of the sub-prime auto lenders operate..

Your more reputable bad credit lenders are usually a subsidiary of a major prime market lender.. Like many companies the larger banks will distribute their risk.

Prime market lenders usually allow for a percentage of high risk loans. While this may be through a sister company the loan becomes a write off if it goes bad..

With that said there are also many bad credit loan companies who are second rate lenders, do not have the backing of a major lender and cover their risk by taking advantage of those with bad credit.

Your major lenders can distribute their risk and charge higher interest rates. There are of course many reputable lenders who will give you fair deal. The others will try to overcharge you on the vehicle you choose..

Many sub-prime lenders either own or partner with dealers where you are able to buy your vehicle. While this is fine it is not okay if the dealer limits your selection to specific vehicles. The question becomes why do lenders do this..

Since your less powerful lenders have no backing they now cover their risk in other ways that can hurt you. Vehicles that do not hold their value are less of a risk and offer the lender the opportunity to overcharge for the vehicle.

If you see this run. The tough times you have had do not dictate being taken advantage of and with a little research you won’t..

Here are some of the most common questions we receive:

Do sub-prime lenders require a down payment?

Most of your sub-prime auto lenders will allow zero down financing. There are some who will require a percentage of the vehicle as down money. .

Does a sub-prime loan affect my chances of getting prime rates in the future?

This simply put is a myth as the opposite would be true..

Unfortunately choices are limited with bad credit. Of course you can go to a buy here pay here place but talk about rip offs or you can work with a legit sub-prime lender. As long as you deal with the right lender they will report your timely monthly payments to the credit agencies which will go a long way to repair bad credit.

* Will I pay higher interest rates?

Yes. While you will pay higher interest rates with bad credit, your next loan should be at prime interest rates with timely payments..

The object is to get the vehicle you want and timely payments will give you a very good chance of getting back to prime rates with your next loan..

* Which are the strongest and more reputable lenders?

This is the most important question as not choosing the right lender will significantly increase your cost and not help you to rebuild your credit.

You can visit Auto Bad Credit who has a complete list of reputable lenders who offer zero down 100% approval for all credit.

How to Improve My Credit – Tips to Improve Your Improve Credit Rating Quickly

Darin Sewell asked:

Need To Improve Your Credit Rating Quickly?

Bad credit can affect many aspects of your life and in ways you never thought possible. Aside from just being used by banks and lenders it is now being used by auto insurance companies and many employers as well. This is why it is important to get you credit rating improved quickly.

How Can I Improve My Credit Rating Quickly

There are a few things that you can do that will have a quick positive affect on your FICO scores that are easy to do but keep in mind that to actually improve your credit the right way it will take some time.

Secured Credit Cards – If you need some good trade lines on your credit report a secured credit card is probably the best way to get this done. These cards are secured by money that you give to the lender and they hold in a escrow account. If you fail to make your payments they get the money. Pay on time however and they will report just like a normal charge account does and have a positive affect on your scores within 30 days. As long as you do not default on your account you will get your money back if you cancel.

Negotiate Current Collections – Many times people have open collection accounts on the credit reports that are dragging their scores down. If these accounts are older you can ask the collection company to remove them from your report if you pay them off. If they agree ask them to settle for a lesser amount. They may or may not agree but if the account is old enough your chances increase, start at 50% of the balance owed and work from there. Just remember to get the offer in writing before you send them a check and never give them a checking account number or credit card number always send the check in buy mail!


Credit Repair: Improve Your Credit Rating

Terry Till asked:

In today’s world of financial credit it is of the utmost importance that you have a sound credit rating, or score, as this is the benchmark that all financial institutions use to determine whether they will advance you credit.

Now this form of credit may be for any number of purposes such as an automobile purchase, a mortgage on a home or even a family holiday, whatever it is that you are looking to gain credit for will involve a credit worthiness check and so you will see how vital a good credit score is necessary.

Obviously things taken into consideration by the financial institutions when arriving at this credit worthiness rating are previous loan repayment history and basically anything in your financial history that might give them doubts as to your possible worthiness to repay any credit given.

Obtaining a good credit history is usually something that is acquired automatically over your normal lifetime of using bank accounts and generally paying credit arrangements on time, however if at anytime you have been in the unfortunate position to have defaulted on credit repayments or even had to come to some arrangement on credit repayments by a forced legal action then this will obviously affect any future possible credit advancements.

One-way you can start to build, or rebuild your credit worthiness might be by obtaining a secured or pre-paid debit card. These can be used exactly the same way as a traditional credit card however you place cash advancements on the card first, which in effect becomes the limit on the card you are able to use. These cards are available fairly easily as there are no risks to the financial lenders and thus gives you all the advantages of a normal credit card without any possibility of placing yourself into a debt situation.

Over time using this means of payment while maintaining any other financial commitments you may have will regain your credit score and in time will lead to you being able to approach companies for a traditional credit card, should you wish, plus all other forms of credit arrangements.


Increase Credit Rating – Why Professional Assistance is Needed For Improving Your Credit Rating

Divya Mishra asked:

There are institutions specializing in providing credit repair training. Do you think these institutions are merely providing that information which is available to all and sundry? Has that been the case, do you think individuals would pay money to acquire professional qualification? The World Wide Web is a great place to get basic information about various aspects and things related to credit score.

However, if you want to improve credit rating in a planned manner and if you want to get maximum value for each and every dollar you spend, it is obvious that you will have to go in the professional assistance. When you do not have the ability to repay the credit card debt that you have incurred on time, isn’t it obvious that you would not have the discipline necessary to manage your finances even as you improve your credit score?

To improve credit rating, you should have a clear understanding of the short term as well as the long term advantages and requirements. There are many persons who file disputes and reduce their credit card debt and then proceed to apply for half a dozen credit cards all at once.

The end result is that the credit score of the individual takes a huge hit and all the good work done is undone. Of course, these are just the basic mistakes. There are numerous other mistakes that people make when applying for loans or entering into financial transactions.

It is advisable to have a professional by your side when you are trying to improve credit rating as you will get useful advice, tips and hints on all aspects and facets of the task. What is more, the monthly fee that you pay can easily be utilized to learn as much as possible.

After some time, you have the option of skipping professional service on a regular basis. However, with the economy still in doldrums and the presence of credit score very important, there is no point in trying to save money instead of investing it in professional services to improve credit rating.

Just make use of the World Wide Web to contact all those persons who have utilized the services. Nine out of ten persons will say that they have not just enjoyed a high credit score after employing the services but they have also learned a lot and have understood what it really takes to maintain the score at high levels. If you do want to join this list, it is imperative that you opt for professional services as early as possible.


Improving Your Credit Rating Brings Fantastic Opportunities Your Way!

Michael J Robinson asked:

Did you know that an improving credit rating will open the door to many new opportunities, save you hundreds or even thousands in annual interest costs, save you money on insurance premiums and even help you get new employment a whole lot easier? It’s a fact and here are the reasons why…

Improving your credit rating opens new doors of opportunity…

By simply taking the necessary steps to improve your credit rating and getting your credit score up to 720 points plus you will be seen through the eyes of a bank or lending institution as a sound credit risk, and provided you meet their other lending criteria such as income to debt servicing ratios etc… you are far more likely to qualify for a home loan.

Now then, just think about that for a moment… imagine if you could borrow to buy that house down the road which is going into foreclosure and you know it will be selling for a bargain price… then you could use it as a renter that pays it’s own way without you having to pay in to it and it builds up your equity… can you see the opportunity?

Not that this is promoting taking advantage of other people – it certainly is not… however there are a lot of foreclosures currently, and the banks are going to sell it regardless… to whoever is willing to buy… right. So if you have good credit the doors of opportunity will open up.

Improving your credit rating can save hundreds or even thousands in annual interest costs…

With a proven credit rating and a credit score of 740 points plus you will secure the very best lending terms and pay the lowest current interest rates… and the savings you make in interest over the course of a year can be quite remarkable!

It is quite possible for someone who has a credit score of 750 points to pay anything in the vicinity of half a percent to 2% less than someone whose credit score is 650 points… especially if the lower score somebody has to borrow from 2nd tier lending institutions.

So let’s run the numbers… if you borrow $200,000 at 5% on interest only you are paying about $10,000 per annum. If Joe Somebody borrows $200,000 at 6% they will pay $12,000 per annum… a difference of $2,000 – in just one year or about $40 per week.

Couple that with the fact that you want the very best rate because maybe you are borrowing to buy the deal described above and don’t want to have to top up the mortgage payment, but rather have the rental cover the mortgage… then suddenly the interest saving becomes vital!

So as you can see… an improving credit rating is of high value to you in this situation too.

Reduce your insurance premiums

Reduced insurance premiums are another benefit you gain from an improving credit rating, simply because you are seen as less of a credit risk and insurance companies also factor in that you would be less likely to default on payments etc.

Provided you have no claims or very few at least you will find that over time your insurers will offer you better terms and reduced premiums. If they do not, then advise them that you will be trying a few other insurers to make comparisons, knowing that your credit rating will hold good sway with them also.

You’ll be amazed at how quick and favorable your response is from your existing insurer.

Improving credit enhances new employment opportunities

In today’s competitive employment environment it is essential that you improve your credit rating, as employers now have direct access to your credit file and of course this can have an effect on whether you secure a new position or not.

A poor credit rating and a history of unpaid debts etc would suggest to any employer that you could be unstable in your work habits also and this will really count against you.

Quite the opposite picture is painted for the employee who has a clean credit record, as obviously it suggests stability, reliability and good ethics… all the qualities a smart employer will be looking for.

To conclude: the reasons above make it is easy to see how the doors of great opportunity can open wide to the person with an improving credit rating… however one question remains:

“How do you improve your credit rating…in order to cash in?”

Answer: visit the link below and claim your free video e-course on how to improve your credit rating… you’ll find out everything you need to know!


Steps to Improve Your Credit Rating (Part 2)

Liam Gerken asked:

Lenders like stability

This is shown in a number of ways, for example being with the same bank, employer and at the same address for a few years. Basically, the more stable your current situation is, the higher your credit score will be.

For instance, homeowners are more likely to score higher than those who rent. If your home has a landline it’s always best to put this down on applications over any mobile number, as this helps with security checks.

Also, the longer you have been with a particular employer the better, and those that are self-employed may find it harder to get approved, even with a large income.

Get closure

Contrary to popular belief, keeping multiple disused credit accounts open is not always a good move, especially if you’re trying to boost your credit score.

All this shows prospective lenders is that you could run up a lot of potential debt, which obviously might make them reluctant to open up further more lines of credit.

It is important to note too, that simply cutting up a card doesn’t close the account, it merely prevents you from using it. Also, even after a phone call to the lender, requesting closure of the account, it will usually be left open for a short while. It is a good idea to give them a call again in a few months time to confirm the account’s closure.

Building/rebuilding your history

First-time applicants are likely to find it quite difficult to get accepted for any lower-rate credit deals. This is because of their lack of credit history.

One of the things about credit scoring is that it aims to predict what you will do with any new credit, based on your past habits.

Therefore, if you are new to the world of credit, then there is no way of predicting how you will use it. For this reason, many first-time applicants will find themselves lumbered with higher interest rates.

It’s best to continue with any high-rate card or loan offered for up to a year, making sure you spend a little – and always make repayments in full, to avoid any ludicrous interest charges.

Once you have done this and have built some (hopefully positive) history you shouldn’t have any problem applying for lower-rate products.

This method can also be used to repair bad credit history.

Don’t miss any repayments

Although it’s always recommended to make more than just the minimum monthly repayment, if you are struggling to meet repayments, it’s always best to pay at least the minimum than to pay nothing.

Doing otherwise, even just the once, can seriously damage your credit rating.

If you are continually struggling to meet monthly repayments then it is usually a good idea to call the appropriate lenders. They may be able to arrange an alternative repayment schedule.