Tag Archives: Fico 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.