“Understanding Your Credit Score”
To get approved for a mortgage, car loan or any other type of financing, all you need, assuming you have the income to make the payments and employment and stable housing, is a credit score of 620-650 or higher. A credit score of 750 will pretty much guarantee that you are approved.
“Get a Copy of Your Credit Report”
You can obtain a totally free credit report once per year. If you have been turned down for financing based upon your credit report request it within an allotted period of time at www.annualcreditreport.com. You can also get all three reports at www.CreditCheckTotal.com.
“Review Your Report”
The first thing that you’ ll want to do is sit down and make a list of your debts. Separate them into three categories:
“Quickly” —Can pay off in one lump sum.
“Take some time” —Will take longer to pay off.
“Not Possible” —Just can’t pay off.
1. Look for delinquent accounts.
2. Take a pen and paper and make a plan to pay off all of the “Quickly” debts over the next twelve months. You’ll want to pay them off in one lump sum.
3. See how much money you have left over and set a calendar time of when you can payoff the “Take some time” debt and stick to it. Remember you have a goal and need to stay focused.
“Obtaining a 750 Score”
There is a process for paying off your debts. First, let’s discuss the two methods of removing negative information.
Method One: Pay the creditor and request that they remove the negative information. Now, be forewarned, you may have to get tough with some of these creditors and explain that you are attempting to clean up your credit. Tell them that you are making those creditors who are willing to remove the negative information for payment of
the debt a priority and if they refuse to remove it, then you will be forced to put
them at the bottom of your list.
Method Two: You are going to dispute them. Pick one debt per two week period and send a certified letter (not a phone call, a letter) to the credit bureaus that list the debt and dispute it for whatever reason you can think of. You can say the dates are wrong, the amount is wrong or the debt simply isn’t yours or it was paid. A law exists that credit bureaus must remove negative information if the customer disputes it, and the company that listed the debt doesn’t prove that the debt is owed and is correct within thirty days. Most companies fail to send it off within the thirty days and many may not even be able to find the records, especially if the debt is a few years old. Send one debt in every two weeks, or even more spaced out over the year period if you only have a few.
These two methods combined are going to remove almost all of the negative information from your credit report and will bring the score up considerably . However, we are not finished. At the same time that we are removing negative
information, we’ re also going to rebuild your credit.
To help rebuild credit getting a secured credit card is one that works exactly like a credit card, but with the credit line secured by a cash deposit, which you usually receive back within a year of using the card responsibly . The money you secure it with is not yours to spend, it’s your collateral to obtain this credit card. These secured credit cards report as a credit card not as a secured credit card. Reports to all three bureaus. Reports minimum quarterly, preferably monthly. Charge on it in small increments paying it off successfully monthly after month. Do not abuse it otherwise your efforts will go down the drain. AVOID LATE PAYMENTS.
In month three come up with another $300 and get a secured credit card from a different company . Use it the same way. Pay the entire bill off each month on both cards.
Finally, in about six months you’re going to go shopping for a store credit card. These are quite easy to get with very little of a credit history and you should be able to get one quite easily . Then, use it just like the secured cards until the end of the twelve month period.
Use the credit checking website you joined up with to monitor your credit as you pay off debts, get them removed, and dispute others. You will also see good payments begin to appear and your score will begin slowly climbing up, gaining more and more momentum. With these steps, you should be able to move from 550 to 750 in a year. Good luck with your journey!