I know silly question. Of course you do.



If you Google the phrase "Credit Repair" you'll find hundreds of thousands of websites publishing the same generic, useless crap about "under the FCRA you have the right to dispute... yada, yada."

Sure, it's important for you to know how to remove negative items from your credit report (that being the worst way by the way), but removing negative items is only one part of a good credit score.

It's possible for tens of thousands of people just like you - to raise your credit score by 80, 90 and even 100 points before you need any kind of help from an outside credit repair agency.

Read on to see how to do it yourself!

Your payment history is only 35 percent of your credit score. The second largest factor in your credit score is your credit utilization... fortunately for you, it's also the easiest to manipulate, control and manage wisely.

Tip One: Pay your credit cards before the closing date.

Credit card companies like to report your balances at the same time that they mail you your bill.

If you've ever pulled your credit report and noticed it's not showing the payment you just made - that's why.

So how can use this to your advantage?

Call your credit card companies and find out your closing dates. Make sure your payments are in before that date; don't wait for your bill to arrive to pay.

*Bonus Tip: If you're not maxed on your credit cards, with a little planning you can shift balances between your cards based on closing dates. It will appear as though you have no balances. Of course really having no balances is the best situation but you'll get there I have faith in you.

Tip Two: Keep Your Balances Below 10% of Limits.

I read a lot of websites where credit experts say to keep them below 50 percent.

Yes 50 percent is better then 60 percent but still not great. The real impact comes when you get them below 10%. If you simply do not have the financial resources to pay them down, see Tip one.

Tip Three: Make Sure Your Credit Limits are Reporting

A lot of credit card companies don't report your spending limit. They do this because they don't want their competitors seeing their lending habits. Capital One is notorious for this practice.

Here is why it hurts you.

When your credit limit isn't being reported - the scoring system can consider the highest balance you've ever had as your limit.

Example:

Your limit: $10,000 (actual limit)

Your highest balance: $4,000 (will be considered your limit)

Your current balance: $2,000

If your actual limit was being reported, you'd only be at 20 percent utilization. In the above scenario, it's showing you're at 50 percent utilization and your credit's getting hammered.

Tip Four: Keep Your Spouse's Credit File Separate

Keeping your spouses credit file separate is, in my opinion, just a plain old good idea. Not because you'll get divorced (although statistically speaking, well let's not go there)... but because you can help each other out of credit jams. I can't tell you how many clients we've helped get home loans by utilizing one spouse's credit lines to pay the other spouse's off.

Yes, the paying spouse takes a hit, but after the loan closes you can shift the money back and quickly claim the deed to both names.

If you don't understand this one, feel free to post your questions on a forum.

Tip Five: Watch Your Past Due Amounts

You know when you get your bill and it says something like...

"your payment is "X" if paid by the 1st and "X" if paid later then the 15th"

I see a lot of people wait that extra two weeks just to keep the money in their pockets a few more days. That hurts your credit. While it may not be considered a "30 day" on your credit report, it will be reported as a "past due amount".

Always pay your bills on, or before the due date.

A final note: The above tips in most cases can yield pretty dramatic credit score increases pretty quickly. However, they shouldn't take the place of responsible spending habits.

If you're using these techniques, chances are there is a bigger problem. Learn to budget, spend within your limits and always act responsibly and you'll be on the road to great credit in no time. The true test of improved credit is whether or not you can live within healthy means and not remain in the cycle of debt and payment!