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Time heals all wounds....Sep 21 '00 Write an essay on this topic.Everywhere you look, it seems there are services offering to help repair your credit fast...on the Internet, in magazines and newspapers, on billboards. There is one important thing these ads don't tell you.... Assuming that your credit report contains ACCURATE information, there is only one way to improve and repair your credit: Time and responsible behavior. If your credit report is correct, no service can legally remove bad marks from your report. Bad marks such as late payments stay on your report for 7 years, bankruptcies for 10 years, and credit inquiries for 2 years. My opinion on how to improve your credit report? It's relatively simple. I am not an authority on credit and lending, but I have some close friends who are mortgage brokers that recommended the steps below, and my credit rating has improved the last couple of years as a result of following them. ***Get over trying to get correct, derogatory information removed from your reports. Your time is better spent on other things. ***Dispute INCORRECT information loudly, especially incorrect negative information. It will take time, but if you are truly interested in potential lenders having an accurate picture of your credit history, it is a must. ***Close unused accounts. So you have 7 store credit cards that you opened because you got 15% off that day but never used them? Close them. These open lines of credit count can against when lenders are considering giving you a loan or mortgage because they can be charged up at any time. Closing these accounts will simplify your life as well. ***Limit credit inquiries. Your credit report doesn't indicate whether or not credit applied for was granted, so lenders may frown upon numerous inquiries because there may be open lines of credit that aren't showing up yet. Avoiding the 15% off deals when you apply for the store credit cards you don't need is a step in the right direction. ***Pay your bills on time. It sounds trite, but if you have negative marks on your credit report, paying all your bills (mortgage, rent, credit cards, car payments--you name it) will go a long way. As I stated earlier, bad marks stay on your credit report for 7 years, however many lenders will consider RECENT history (the last 1-3 years) more when granting loans/credit. When I was in college, I paid a credit card bill or two 30 days late. I have not paid anything late in well over 2 years, and each time I order my credit report it is satisfying to see remarks such as "Paid on time, as agreed, the last 30 months". Following the above steps will do more than any service can to improve your credit rating. They are simple, and maybe even a little boring. Many people will suggest far more complicated ways to optimize your FICO score, but in the end, doing these things will improve your rating vastly.  |
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