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[U92]Up My Credit Score

by Ian Webber, Ian

Have you been through a rough patch? Has your credit suffered and your scores fallen to sub-prime levels? You do not have to wait seven years to see your credit scores improve. There are many credit repair strategies you can put to use today that will get your scores back on track before you know it. Don't make the mistake of letting your credit languish while you hope for the years to pass quickly. Now is the time to get proactive. Take these few simple steps and start pumping up those scores today.

Start Rebuilding Today

Many people who go through hard times find themselves with no open credit cards. If your credit cards have been charged off, gone to collection, or just closed by the creditor, now is the time to regroup. Forget the past for the moment and focus on today. You need to have at least two open credit cards to get your scores moving in the right direction. I know there is little hope of getting approved for a regular credit card, but there is an option that is every bit as powerful for building your scores; secured cards can rock your world, and in a good way. Here is some motivation. If your scores are in the 500s, or below, and you do not have any open accounts, two secured credit cards can be worth as much as 150 points on your scores. This is credit repair gold, but you need to do it right.

Super Rebuilding Card Tricks

There are a few subtle pointers to be aware of as you get your secured credit card plan underway. The amount of the card limit does not matter. Preserve your capital and open the account with the minimum requirement. Usually this is two or three hundred dollars. What does count is the relationship between your balance and the limit. Keep your balance under twenty percent. Read that carefully; keep the balance under twenty percent of the limit. If you have a card with a two hundred dollar limit you should keep the balance under forty dollars. Also, don't let the balance go to zero; zero balance cards are depreciated by the scoring model. And credit repair rule number one: make those payments on time, every time.

Credit to Avoid

Not all credit types are created equal; at least not as far as your credit scores are concerned. While you are in credit rebuilding mode you should avoid all forms of consumer debt. This includes store cards, furniture store loans, as well as appliance and electronic store loans. The credit scoring model has a built in bias against these forms of debt. This is the case regardless of how well you manage your payments. There is logic behind this oddity; these forms of debt are typically inferior and are statistically correlated with poor payments, so your scores get punished to warn other prospective lenders that you might be risky. Sorry, I'm just reporting the news. From my perspective, store cards can be convenient and may sometimes even provide great discounts. So, if you must utilize consumer debt, go right ahead, but please pay it off as soon as possible.

Credit Repair Cleaning Power

If you have had accounts sent to collection you may be a victim of a very sneaky type of reporting error. Collectors buy and sell debt all the time. It's part of the business. When a collector sells a debt to another collector or passes it back to the original creditor they are supposed to withdraw the account from your credit report, but they rarely do. As a consequence, there is a significant likelihood that some of the collections on your credit report should not be there. Read your credit reports very carefully and dispute any collections that don't look right. Look for multiple collections for the same debt, old collection accounts, and any collections that you don't recognize. You will be surprised how many vanish from your report for the price of a first class stamp. A quick caveat: this credit repair technique is not a means of eliminating legitimate debt, and it is not wise to dispute active collections that you know for sure are accurate, as you may trigger increase collection activity.

Hire Some Credit Repair Muscle

Credit repair is not expensive. You can afford to hire a professional to do the job for you. In fact, if you are a busy person and feel that you don't have the time to do this highly detail oriented job properly, don't do it! Pick up the phone and find someone that will do the job right. Your credit is very important and the difference between doing half the job and doing it all the way may be a world of difference. Good luck!

Bad credit can happen to good people. Often all it takes is a financial misstep here or medical emergency there and the average American could easily make a late payment, miss a payment, or fall behind all together on their bills. While there is usually a unique personal story, and often a very good reason, rarely are individual circumstances a factor when your credit score is calculated.

Now more than ever it's important for individuals to know their credit scores; but apparently private citizens aren't the only ones who need to know the three digit score that's become the "grade" you're given based on your on-going financial behavior.

Recently a very gutsy newspaper in Toledo, Ohio challenged both Republican and Democrat City Counsel candidates to "show their cards," by giving access to their credit reports and credit scores for the voting public to see.

This raises a very interesting question; would an elected official's credit score affect your vote?

I began to think about the potential precedent that this challenge would set if all political candidates were asked to "come clean" with this information. Sure we're used to seeing their tax returns and knowing how much they make, but somehow this seems different, bigger, and more profound.

Credit scores are used by several groups to determine financial patterns, habits and in some cases even your character. They're also used to predict the likelihood of your repeating these patterns in the future.

In general credit scores range from 300 (low) to 850 (very high) and everywhere in between. There is still some mystery around how a score is calculated and what factors are involved. One thing is for sure, this is a number you need to know and watch. Everyone from your current creditors to your car insurance company are checking it periodically to see where you "rank," a low score could result in rate increases.

It's obvious that as individuals we're "deemed worthy" (creditworthy that is) by our credit score on a regular bases. Should the same standards be applied to those we choose to run our cities, states and even this country?

To get a broader perspective on this Pandora's boxlike question I did a bit of research on the overall impact of credit reports and credit scores on an individuals life and came to learn that, according to a Federal Trade Commission Consumer Alert, "Employers often use a credit report when they hire and evaluate employees for promotion, reassignment or retention."

While to some it might seem unfair or like "big brother" is watching just a little to close, often this practice is widely justified, especially in the wake of Enron, corporate scandals and 9-11. Employers are learning that they can tell a lot about a job candidate and their probability to be a quality employee by their credit report and credit score.

Credit scores have the power to be the Varsity letter you wear proudly on your jacket or the Scarlet Letter you wear shamefully on your chest. Given the weight it has on so many aspects of an individuals life, is it fair or even necessary to require political candidates to disclose theirs?

The question will no doubt be debated at water coolers, and in bars, dining rooms, even campaign war rooms all throughout the city of Toledo. I'm in New Jersey (where several candidates are running in heated battles as I write this) and I'll be just as intrigued to learn if this fizzles out, or catches fire as a new trend.

It appears to me that the real question voters in Toledo (and soon maybe everywhere) have to ask themselves will be, "Is a credit score (determined by a complex formula that no one seems to quite understand and that doesn't take individual circumstances into consideration) really a good barometer for a political candidates ability to lead or do the job?"

Maybe. Maybe not. But before you form your opinion, I invite you to ask yourself a question. Given your personal financial situation, past or present, how many votes would be cast in your favor if your credit report was used to judge your character or ability to do the job?

Article Source : Pg. 12

About Author

Both Ian Webber & Sanyika Calloway-boyce are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Ian Webber has sinced written about articles on various topics from Home Management, Credit Loans and Free Credit Report Score. Ian Webber is an expert in consumer law and credit repair. Ian is a graduate of the London School of Economics and The University of Chicago where he earned his LLM. Ian consults with one of the leading online. Ian Webber's top article generates over 5400 views. to your Favourites.

Sanyika Calloway-boyce has sinced written about articles on various topics from Writing, Book Reviews and Small Business. Sanyika Calloway Boyce has made her share of money mistakes. She now teaches programs for teens, college student and adults. Visit her online. Sanyika Calloway-boyce's top article generates over 4400 views. to your Favourites.