Your Credit Score for 07 may have been a little under the
weather. Towards the end of the year, we all look at what
we have accomplished, and what our new goals are for the
New Year. Maybe increasing your Credit Score is one of your
goals for 2008. In this article I will discuss and give
advice on how you can accomplish just that. I still
continually meet families that are not happy with there
scores, or what is being reported on there Credit Report.
The number one question I get asked is what can I do to
improve my Credit. Here are three quick ways.
1. Reduce Debt
2. Increase your credit limits on Credit Cards
3. Get any inaccuracies on your report removed.
To reduce debt is easier said than done. But let's assume
you have 3 credit cards with high interest rates.
Example:
American Express
Balance owed: $6,000
Minimum Payment: 100.00
Visa Card
Balance Owed: $4,500
Minimum Payment $75.00
Master Card
Balanced Owed: $2,300
Minimum Payment: $45.00
To pay off your debt fast, you make minimum payments on 2
cards and double payments on one card only. If you do this
you will pay off your cards quicker. Start with the
Smallest Balanced owed first and work your way up to the
bigger balances owed. This is the fastest way to Reduce
Debt.
Increasing your credit limits on cards, may sound crazy,
but let's assume the following.
Credit Limit $12,000
Balanced Owed $9,000
This particular situation will drop your scores, because
the balanced owed is more than 30% of credit limit. A big
part of your credit score factor is Amount Owed-Extent of
Indebtedness, which is 30% of the overall determining
factor of your score. If you increase your credit limit on
the card to where balanced owed is below 30% of the new
credit limit your score will increase 15 to 20 points.
Get items on your credit report removed if it is incorrect.
Typically when a item is reported on your credit report, it
is reported with all 3 bureaus. Here is where you go to get
items disputed by phone
Experian: (800) 583-4080 9am ' 5pm your Time Zone
Equifax: (800) 797-7033 9am ' 5pm your Time Zone
Trans Union: (800) 916-8800 8:30 -4:30 your Time Zone
When you call the Bureaus to dispute a matter over the
phone, be prepared to fax over documentation backing the
dispute. If the debt is yours and you are calling to
dispute it, you more than likely will not get it removed.
Make sure it is a legitimate inaccuracy. I believe this is
a miss conception out there, that the 3 bureaus will remove
an obligation that you actually owe. Well this is not true,
you need proof you don't owe the debt, or some kind of
documentation for the dispute.
Conclusion: If you follow this 3 step process, you will
soon see that your scores will start to increase, and you
will start putting money back into your pocket instead of
someone else. Remember "your Credit is your Life."
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About the Author: Mike Clover is the owner of
http://www.my720fico.com . My720fico.com is one of the most
unique on-line resources for free credit score reports,
Internet identity theft software, secure credit cards, and
a BlOG with a wealth of personal credit information. The
information within this website is written by professionals
that know about credit, and what determines ones credit
worthiness.
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