7 Strategies to Fix Your Credit Report
by Lisa Phillips
February 22, 2010
by Lisa Phillips
February 22, 2010
| Copyright RebuildCreditScores 2010 All Rights Reserved |
Links
 |
 |
 |
 |
|
 |
|
 |
|
 |
|
 |
|
 |
 |
The main goal in fixing your credit report should be to remove negative information. Any and all
negative information affects your credit score and your ability to secure new credit. Your good
name and credit is involved in all parts of your life and the process of rebuilding credit should
involve a comprehensive plan of attack. Below are seven useful strategies to fix your credit report:
negative information affects your credit score and your ability to secure new credit. Your good
name and credit is involved in all parts of your life and the process of rebuilding credit should
involve a comprehensive plan of attack. Below are seven useful strategies to fix your credit report:
1. Rehabilitate Past-Due Accounts
If you are past due on a credit card or loan some lenders will allow you to rehabilitate your
account. Rehabilitation is a process by which lenders erase negative marks from your credit
reports once a series of on-time payments have been made consecutively. Usually lenders
require at least 6 to 9 consecutive on-time payments in order for the negative marks to be
deleted. Rehabilitation is not something lenders generally offer. You will have to request it. You
may even have to ask for a supervisor or manager in order to get account rehabilitation. Be
persistent because many lenders will work with you, especially during this economic downturn.
Remember to always include your credit rating in the rehabilitation process. You want the
negative past due marks deleted.
If you are past due on a credit card or loan some lenders will allow you to rehabilitate your
account. Rehabilitation is a process by which lenders erase negative marks from your credit
reports once a series of on-time payments have been made consecutively. Usually lenders
require at least 6 to 9 consecutive on-time payments in order for the negative marks to be
deleted. Rehabilitation is not something lenders generally offer. You will have to request it. You
may even have to ask for a supervisor or manager in order to get account rehabilitation. Be
persistent because many lenders will work with you, especially during this economic downturn.
Remember to always include your credit rating in the rehabilitation process. You want the
negative past due marks deleted.
3. Keep Balances within Thirty Percent of Credit Limit
Do not use over thirty percent (30%) of your available credit. Keep those balances low and your
credit scores will increase. Definitely do not go over your credit limit. This hurts your credit score
tremendously. If you have some extra cash on hand pay down your credit card balances, even if
it’s a small one, to 30% or less of your available credit limit. In the alternative, if you do not have
the cash on hand to pay down your credit card account, request a credit line increase but don't
spend it! Many credit card issuers can increase your limit without running a credit report if your
account has been in good standing. Make sure you ask if a credit report will be pulled before
requesting the credit line increase if you do not want to create hard credit inquiries.
4. Attack Collection Agency Accounts
Take a look at your credit reports and analyze collection accounts. First, determine whether the
collection account belongs to you, is outdated (over 7 years old), a duplicate account, or even
previously paid. As the junk debt buying industry grows, collection accounts should be under
close scrutiny. Collection accounts are often sold from one collection agency to another. Every
collection agency involved could be listed in your credit files. This is incorrect and must be
disputed. Zombie debt is also a growing problem. It involves older debt, often past the statute of
limitations, being resurrected by a collection agency. There are horror stories where consumers
have been harassed by collection agencies about closed, charged-off, paid in full or settled
credit card debt over 15 or 20 years old. Learn more about Zombie Debt.
5. Get a Bank Loan Secured by a Savings Account
Bank loans weigh heavily on credit reports. A bank loan will help you rebuild credit. A secured
bank loan will have the same positive effect on your credit scores as an unsecured bank loan, as
long as it reports to all three major credit reporting agencies and paid on time. A proven strategy
that has been around for a while is piggybacking secured loans where you open more than one
secured bank loan. Opening a secured bank loan does not require excellent credit because it is
secured by money on deposit. That money will be earning interest in a savings or certificate of
deposit account. Secured loan limits can range from $500 to $10,000. It simply depends on how
much you are able to put on deposit. You must have enough in your monthly budget to maintain
timely payments as the funds you deposit will be on hold until the loan is paid in full. Learn more
on Secured Loans.
6. Settle Collection Debts and Get a Deletion
Once an account is purchased by a collection agency, it can often be settled for pennies on the
dollar, especially older collection accounts. If you decide to deal with a collection agency never
pay what they are requesting, which often includes inflated fees and interests. But more
importantly, if you choose to settle a debt with a collection agency, get that entry entirely deleted
from your credit reports. There is no incentive to pay a collection agency without getting that
negative entry deleted. Paid collection entries hold the same negative weight as unpaid collection
entries because it is the negative collection entry that decreases your credit score. Negotiate a
pay for deletion if you choose to settle a collection agency debt. Learn how to negotiate
settlement and about pay for deletion.
7. Payment Reporting Bill Credit (PRBC Credit Report)
(“PRBC”) is a national consumer reporting agency which has been in existence since 2002.
PRBC collects, stores and reports bill payment information according to the Fair Credit Reporting
Act. The information contained in a PRBC Report is usually nontraditional credit items such as
rent and utility bills. It gives the consumer and small businesses a way to build a credit file to
demonstrate creditworthiness. PRBC produces a PRBC Report and Bill Payment Score that can
be used to supplement your Experian, Equifax and Transunion credit reports. More lenders are
looking at PRBC Reports, especially for FHA mortgage loans, in determining creditworthiness for
consumers with less than perfect credit. Read more about PRBC credit reports.
Do not use over thirty percent (30%) of your available credit. Keep those balances low and your
credit scores will increase. Definitely do not go over your credit limit. This hurts your credit score
tremendously. If you have some extra cash on hand pay down your credit card balances, even if
it’s a small one, to 30% or less of your available credit limit. In the alternative, if you do not have
the cash on hand to pay down your credit card account, request a credit line increase but don't
spend it! Many credit card issuers can increase your limit without running a credit report if your
account has been in good standing. Make sure you ask if a credit report will be pulled before
requesting the credit line increase if you do not want to create hard credit inquiries.
4. Attack Collection Agency Accounts
Take a look at your credit reports and analyze collection accounts. First, determine whether the
collection account belongs to you, is outdated (over 7 years old), a duplicate account, or even
previously paid. As the junk debt buying industry grows, collection accounts should be under
close scrutiny. Collection accounts are often sold from one collection agency to another. Every
collection agency involved could be listed in your credit files. This is incorrect and must be
disputed. Zombie debt is also a growing problem. It involves older debt, often past the statute of
limitations, being resurrected by a collection agency. There are horror stories where consumers
have been harassed by collection agencies about closed, charged-off, paid in full or settled
credit card debt over 15 or 20 years old. Learn more about Zombie Debt.
5. Get a Bank Loan Secured by a Savings Account
Bank loans weigh heavily on credit reports. A bank loan will help you rebuild credit. A secured
bank loan will have the same positive effect on your credit scores as an unsecured bank loan, as
long as it reports to all three major credit reporting agencies and paid on time. A proven strategy
that has been around for a while is piggybacking secured loans where you open more than one
secured bank loan. Opening a secured bank loan does not require excellent credit because it is
secured by money on deposit. That money will be earning interest in a savings or certificate of
deposit account. Secured loan limits can range from $500 to $10,000. It simply depends on how
much you are able to put on deposit. You must have enough in your monthly budget to maintain
timely payments as the funds you deposit will be on hold until the loan is paid in full. Learn more
on Secured Loans.
6. Settle Collection Debts and Get a Deletion
Once an account is purchased by a collection agency, it can often be settled for pennies on the
dollar, especially older collection accounts. If you decide to deal with a collection agency never
pay what they are requesting, which often includes inflated fees and interests. But more
importantly, if you choose to settle a debt with a collection agency, get that entry entirely deleted
from your credit reports. There is no incentive to pay a collection agency without getting that
negative entry deleted. Paid collection entries hold the same negative weight as unpaid collection
entries because it is the negative collection entry that decreases your credit score. Negotiate a
pay for deletion if you choose to settle a collection agency debt. Learn how to negotiate
settlement and about pay for deletion.
7. Payment Reporting Bill Credit (PRBC Credit Report)
(“PRBC”) is a national consumer reporting agency which has been in existence since 2002.
PRBC collects, stores and reports bill payment information according to the Fair Credit Reporting
Act. The information contained in a PRBC Report is usually nontraditional credit items such as
rent and utility bills. It gives the consumer and small businesses a way to build a credit file to
demonstrate creditworthiness. PRBC produces a PRBC Report and Bill Payment Score that can
be used to supplement your Experian, Equifax and Transunion credit reports. More lenders are
looking at PRBC Reports, especially for FHA mortgage loans, in determining creditworthiness for
consumers with less than perfect credit. Read more about PRBC credit reports.
Related Topics:
2. Dispute Negative Information
Credit bureaus handle millions of credit
files and even more pieces of
information daily. Inaccurate reporting,
mistakes and errors occur all too often.
In order to fix your credit report dispute
all negative information including
duplicate account reporting, incorrect
balances, negative payment history,
derogatory accounts and reporting
errors. Learn how to dispute specific
information in your credit report.
Getting negative information removed
will give your credit score a good boost
and improve your credit history.
Credit bureaus handle millions of credit
files and even more pieces of
information daily. Inaccurate reporting,
mistakes and errors occur all too often.
In order to fix your credit report dispute
all negative information including
duplicate account reporting, incorrect
balances, negative payment history,
derogatory accounts and reporting
errors. Learn how to dispute specific
information in your credit report.
Getting negative information removed
will give your credit score a good boost
and improve your credit history.
Recent Topics
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |