Improving Your Credit Rating Quickly and Legally

In America, you can't walk down the street without someone wanting to check your credit rating. If you suffer from bad credit, learning the techniques to improve your credit rating is a must - and you must learn these techniques now! Believe it or not, your happiness in your everyday living can depend on it.

Here are some of the most effective ways to accomplish this:

Tip 1: You absolutely must stay on top of the information game. It is your right to obtain a free credit report from each of the three major credit bureaus. You may do this each year. The three bureaus are TransUnion, Experian and Equifax. An even more effective way to use these annual reports is to stagger your requests four months apart. This way, information that's being reported allows you have a better chance of catching any errors sooner. Check each of your reports for the following:

• Check for any negative items and dispute these items. It's important to note that you can dispute these items - it's your right and is part of remaining vigilant and proactive in your efforts. If an agency cannot verify the negative claim within a 30-45 day timeframe, it must be stricken from your report.

• Check for any outdated negative items. All derogatory items on your credit reports have a statute of limitations. After a certain time period, they should drop off automatically. Since this isn't always the case, anything you notice that's more than ten years old, you should request that it be removed.

• Check for items that have been paid off but aren't reflecting a paid status.

Any other questionable items that catch your attention.

Tip 2: Begin paying your bills on time. Regardless of your past credit history, it is never too late to begin improving your credit rating. Pay on time, every month, and you will begin to see positive changes.

Tip 3: You must keep your credit card balances low and you should attempt to pay the balances each month. Keeping your balances below 30% of the available credit and then paying them in full and on time is very important, as it is the second scoring variable considered (the first being timely payments) in your credit scores.

Tip 4: Break open your wallet and dig out some of those older credit cards. Use them and pay them in full. Long-standing credit accounts rate higher than newer ones. Keep that positive information flowing into the major credit reporting agencies to further improve your credit rating.

There are many more tips and tricks that you can utilize to improve your credit rating quickly and legally. This list is the most powerful. Incorporate these tips and remain diligent in your efforts. You will begin to see dramatic improvements in your credit rating. Stick to your plan and repeat it. It's possible to improve your credit rating and financial future with a little patience and dedication to your efforts. You'll be back on the top in no time!

How Can I Repair My Credit Report When I Don't Understand It?

Repairing bad credit can seem like a slow and time consuming process. Patience and knowledge of how it didn't happen overnight is required. Understanding the credit system and how your credit reports are perceived through the eyes of creditors is crucial when you begin this process of improving your scores. Unfortunately, there are millions of Americans who learn too late just how the credit system works. Believe me - they end up paying the price for this lack of knowledge.

When a consumer asks the question, "How do you repair bad credit?" it's often after they've been denied financing for their dream home and then discover it's too late. Their income is sufficient and they're good people who deserve the opportunity to live the American dream. Unfortunately, their low credit scores are proving to be a major setback. It's only after leaving a car dealership or their bank after having been denied they realize their scores are too low. Either way, it's traumatic and heartbreaking. It prevents us from living the life we want to live.

The good news is that regardless of how bad your situation is, there are many ways to repair your credit. The first step is contacting the three major credit bureaus - Equifax, Experian and TransUnion. Request a copy of your credit report as well as your FICO scores so that you have a clear snapshot of where you are and can measure your progress as you move through this process.

Once you've received your credit reports, you'll want to ensure the information is accurate. Nearly 79% of all credit reports include errors. These errors can mean the difference of hundreds of thousand of dollars in interest. It's then you realize how serious this is.

Look for any negative accounts on your credit report that are inaccurate. If you are not 100% certain of an account's accuracy, highlight them. Any uncertainty or questions in your mind of whether they belong on your report, request an investigation. Include these items in a dispute letter to the credit bureau that is reporting the account.

Give the credit bureaus ample time to conduct their investigations. According to the FTC, thirty days is sufficient. Once you receive the results of the investigation, review your credit report again to what's been removed. If there are any items that have been verified, you can then forward a procedural request to determine what methods were used to verify the information. You will want to continue this process until you have achieved the desired results.

This is only method of credit repair and there are many more. Learning the steps to repair bad credit is a must for anyone suffering from a bad credit rating but wishes to improve it. After all, your credit rating is essential to your financial well-being and you should be willing to fight for it.

5 Steps You Can Take Right Now to Repair Bad Credit

There are many simple ways to repair bad credit. Everyone has had at least a few damaging accounts within their credit reports. It's difficult to not have ever experienced a blemish. Life happens and we must react accordingly. A temporary rating setback is common for nearly everyone. The key is to not stress too much about it. Just as your credit scores can be damaged easily, they may also be repaired. Following are five tips that you can implement today that will reflect positively on your scores.

Tip Number 1:

Know what you are dealing with. You have a right to request an annual report free of charge, from each of the three major reporting agencies (also known as a tri-merge). Equifax, Experian and TransUnion are the three big players. Requesting a revised report every four months will empower you to catch errors early on, thereby allowing you to investigate and request erroneous information be removed. If you are not aware of these negative items, you can do little to repair them.

Tip Number 2:

Dispute negative items on your credit reports. Federal laws dictate any negative items on your credit reports that cannot be substantiated or verified within a 30 to 45 day window of being disputed, the item must be removed. If for any reason in the chain of verification the process fails to complete, you may then insist its immediate removal. Roughly 40% of all disputes are not verified!

Tip Number 3:

If you have active credit cards, a few sacrifices may be required to pay the balances down to either a zero balance or perhaps a lower balance. The second most important variable for computing your credit score is how much of your available credit is being used. If your credit cards are maxed out and you make only the interest payments - even if these payments are made on time - it can still reflect negatively on your credit report. Keep your credit card balances at around 30% of the available limits and pay the balances in full each month. This is a great way to repair bad credit scores.

Tip Number 4:

Ensure your monthly payments for credit cards, bank loans, mortgages, utilities and others are made on time each month. This is by far the most important variable in the algorithm that calculates your scores. The best way to ensure you're able to do this is to not extend yourself into situations that will prevent on time payments. One single late payment can drop your credit report score by 100 points or more! It seems incredible, but it's true. The fact that a negative mark is so easy to acquire should tell you how important this is. Ensure timely payments are made as part of your efforts to repair and then maintain your credit scores.

Tip Number 5:

Live below your means! If you cannot afford it, don't buy it. It is unwise to go into debt for unnecessary extravagances such as big screen televisions. Save your money and then pay cash.

Repairing bad credit can certainly enhance your abilities to live the lifestyle you desire. You must be proactive, patient and have a solid plan. Protect your credit rating! This is one of the most important aspects of survival in a capitalist society such as the U.S. Begin your efforts to repair your credit scores today.