Two essential tips to clean your credit report and add positive credit to your score.
If you are fixing your credit report you understand how important this three digit number is. It directly impacts the quality of life you can have.
This number is how employers and creditors will judge you. With a low score it can prevent you from being hired at a job or being approved for credit.
When you apply for new credit many lenders will look at nothing more than your credit score. They will not take into account any reason,
no matter how legit, as to why you have a negative mark on your credit report.
There are two parts to credit repair that you should focus on.
1. Removing negative items from your credit report.
Negative marks cause the most damage to your score. However you can remove these items without waiting the full 7 years.
The Fair Credit Reporting Act that was passed by congress allows you to dispute negative marks. When you file a dispute you are challenging the accuracy or validity of a negative mark on your credit report.
In order to file a dispute a dispute letter must be mailed to the credit bureaus. In this letter you need to include an explanation as to why the mark is incorrect. Frequently reasons are; not my account, account paid before sent to collections, item out of date. When the bureaus receive your letter they will investigate the mark.
If the mark can not be verified then the bureaus must remove it from your credit report. It has been learned that once an investigation occurs marks are often removed, regardless of their accuracy.
2. Build positive credit
This is a more difficult task with a low credit score. This is because it is difficult to be approved for new lines of credit.
However it is necessary to open a new line of credit. The best is an unsecured credit card even with the insanely high interest rate.
With your credit card you want to keep the balance at approximately 10% of your credit limit. This is because it will show the credit bureau that you are using your credit and it will improve you ratio of credit to debt.
Also by making your on time monthly payments it will create a positive payment history. If you can not build a positive payment history it will be next to impossible to improve your credit rating.
In sum, you can repair your credit without waiting the full seven years. However it may be in your interest to remove some derogatory items before you apply for a new line of credit. Understand that both these parts are vital to getting you to a 700 credit score.
