Want to clean up your credit report, but don’t know where to start? Are you trying to get rid of debt, but don’t have extra money to pay it off? More than 35 million Americans are in the same boat as you. Some seek the help of professional credit counseling services and pay exorbitant fees for things they can do themselves. Others have discovered the benefits of the do-it-yourself credit approach.
Here are 6 simple tips to help you understand how increase credit scores Quick.
Step 1 Get a realistic idea of your position on the credit scale.
Request a copy of your credit report at annualreport.com. If you have already received your free report for the year, you may still be entitled to a second free report, if you are unemployed, denied a mortgage or car loan, receive welfare, are the victim of fraud, etc. If none of these apply, go to the websites of the three main offices and request a copy of your report for a minimal fee.
Step 2 Take a closer look at the report.
Take a look at your report. Rank all items in descending order of importance: bankruptcies, foreclosures, repossessions, loan defaults, lawsuits, collections, late payments, late payments, credit inquiries. Certain items (bankruptcies, liens) are final and are not subject to change. All you can do is wait until they disappear from your registry. The rest, however, are negative items that can be modified and even removed from your report. Focus your efforts on the elements that hurt your credit the most.
Step 3 Identify any incorrect or outdated information in your report.
Under the FCRA (Fair Credit Reporting Act), you are allowed to dispute any outdated, incomplete, inaccurate, questionable, partial or unverifiable element of your report. You are also allowed to dispute at various levels: credit agencies, collection agencies, original creditors. Exercise your legal right and start to dispute.
Step 4 Always request validation of the debt.
If an agency is unable to validate the debt (provide proper documentation proving that the debt is yours), then the respective agency has to remove the item. You do not have the proper documentation to validate the debt.
Step 5 Items to be paid in full.
There are certain items that must be paid in full if you want to increase your credit score. Items that fall into this category are legal lawsuits, tax ties, child support, late payments.
Step 6 Items you don’t need to pay for in full.
Collection are examples of such items. Collection agencies still make a good profit from you, even if you pay them 25% or less of the amount you owe. Negotiate with them until you reach a settlement amount that satisfies you.
Step 6 Delete, delete, delete
You should always aim for the complete removal of negative items from your report. Use all possible strategies (disputes, negotiations, requests for debt validation, etc.). Use different approaches with different agencies to achieve maximum results.
There are numerous credit tricks and little-known secrets to help you increase credit scores Quick. Once you start thinking outside the box, you will be surprised to find out how easy it really is to repair credit.