If you are cleaning up your credit report you realize how important your score is. This three digit number will directly impact your quality of life.
You will be judged by employers and lenders on this number. It can prevent you from being approved for credit and worse yet being hired for a job.
When you apply for credit most lenders will look at nothing more than this three digit number. They will not take into account any reason as to why a derogatory listing is there.
There are two aspects you should focus your efforts on when repairing your credit score.
1. Deleting negative marks on your credit report.
Derogatory items will cause the most damage to your score. However these marks can be removed and removed before waiting the full 7 years.
The Fair Credit Reporting Act that was passed by congress allows you to dispute negative marks. When you file a dispute you are challenging the accuracy or validity of a negative mark on your credit report.
To file a dispute you must write a dispute letter and send it to the credit bureaus. In this letter you need to include the reason the listing is inaccurate such as; not my account, never paid late, item out of date. Then the bureaus will conduct an investigation into the negative listing.
If the mark can not be verified then the credit bureau must remove it from your report. It has been found that once a listing is investigated it is often removed, regardless of its accuracy.
2. Build positive credit
This is a more difficult aspect. This is because when you have a low credit score it is hard to be approved for new credit lines.
It will help tremendously if you can open an unsecured credit card. I realize the interest rate is going to make you sick but it needs to be done.
With your credit card you want to keep the balance at approximately 10% of your credit limit. This is because it will show the credit bureau that you are using your credit and it will improve you ratio of credit to debt.
In addition making on time monthly payments will create a positive payment history. Without building positive credit it will be hard to improve your score even if you remove all the negative marks.
In sum you can repair your low credit score. It may make sense to wait and remove some of the derogatory items before you apply for new credit. However both these aspects need to be used to get to a 700 credit score. - 15224
You will be judged by employers and lenders on this number. It can prevent you from being approved for credit and worse yet being hired for a job.
When you apply for credit most lenders will look at nothing more than this three digit number. They will not take into account any reason as to why a derogatory listing is there.
There are two aspects you should focus your efforts on when repairing your credit score.
1. Deleting negative marks on your credit report.
Derogatory items will cause the most damage to your score. However these marks can be removed and removed before waiting the full 7 years.
The Fair Credit Reporting Act that was passed by congress allows you to dispute negative marks. When you file a dispute you are challenging the accuracy or validity of a negative mark on your credit report.
To file a dispute you must write a dispute letter and send it to the credit bureaus. In this letter you need to include the reason the listing is inaccurate such as; not my account, never paid late, item out of date. Then the bureaus will conduct an investigation into the negative listing.
If the mark can not be verified then the credit bureau must remove it from your report. It has been found that once a listing is investigated it is often removed, regardless of its accuracy.
2. Build positive credit
This is a more difficult aspect. This is because when you have a low credit score it is hard to be approved for new credit lines.
It will help tremendously if you can open an unsecured credit card. I realize the interest rate is going to make you sick but it needs to be done.
With your credit card you want to keep the balance at approximately 10% of your credit limit. This is because it will show the credit bureau that you are using your credit and it will improve you ratio of credit to debt.
In addition making on time monthly payments will create a positive payment history. Without building positive credit it will be hard to improve your score even if you remove all the negative marks.
In sum you can repair your low credit score. It may make sense to wait and remove some of the derogatory items before you apply for new credit. However both these aspects need to be used to get to a 700 credit score. - 15224
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