Mrs.TopoT Posted March 12, 2007 Report Share Posted March 12, 2007 I thought that I would share a little bit of info that I have learned over the years from doing credit repair. Number 1: Even if you remove all negative items from you Consumer Credit File you will not have good credit. You will have no credit. And no credit is actually worse than bad credit. Number 2: Having a major credit card will improve your credit rating if you have 65% available credit on it. Number 3: Don't pay your bills late. If you are having trouble paying your bills, contact the Creditor and ask for an extention of time. Be nice! More times than not they are willing to work with you and won't report it on your credit. Number 4: Don't settle accounts. If you pay the balance less than the original amount, the CA can then chargeoff your act to some other CA. You will then have two negative accounts. Number 5: Get everything in writing. If you are settling an account, get it in writing first. As a conditiion for paying off the account have the CA remove the negative listing. But get this in writing. Number 6: If you have an account that is several years old, leave it ALONE! Don't make a payment on it. Negative items can stay on your credit report from 7 to 15 years. But that is from the last date of activity. Number 7: Obtain your credit report before you shop for credit, Example( getting new car, house, loan,etc.) that way you have an idea what your credit rating is. Number 8: Obtain your credit report atleast twice a year! Knowing what is on your credit report is beneficial. Review for any accounts that are not yours, negative accounts. One very easy way to improve your credit score is to obtain a CD Loan. A CD is a Certificate of Deposit. You can get one from your bank. I would suggest getting a 12 month CD or an Easy access CD. You give the bank let's say $1,000, they put that money in a CD. It is your money, but it's also the banks. Then you turn around and borrow against your CD. The bank give you the $1,000 back, and you make monthly payments on the loan. Once paid off the CD is yours again. There are several benefits in doing this. First the account is coming from a bank, depending on the way it's structured the account can either be an installment account or a revolving account. You will pay a low intrest rate on the loan while still gaining intrest on the CD. nother suggestion is to wait about 6 months and then refinance the CD Loan. You will then have 2 positive accounts. Draw back is that you won't have more than 6 months of payment history. This is the best way that I have seen to dramasticaly improve your credit score. After you have done this several times, your bank will most likely finance a loan for you without any collateral because you have proven yourself a reliable consumer. I hope that some of this info helps. Link to comment Share on other sites More sharing options...
pjfan Posted March 12, 2007 Report Share Posted March 12, 2007 All great tips but one you missed. Become an Authorized User on someone you know and trusts account. Their good credit history will show on your report for the card they have put you on. Ours went up 40 points overnight!It is a great way to jumpstart your FICO scores and helps you establish your own credit quicker. Link to comment Share on other sites More sharing options...
myscoresawful Posted March 12, 2007 Report Share Posted March 12, 2007 Number 1: Even if you remove all negative items from you Consumer Credit File you will not have good credit. You will have no credit. And no credit is actually worse than bad credit. Number I have several good tradelines, by removing the negatives, I will have credit, good credit because they have been good tradelines for several years.Even if all I had was bad tradelines, I would feel much better with no credit than bad credit.....how ever, I do see what you mean.Great post and a lot of valuable info in it.Thanks! Link to comment Share on other sites More sharing options...
chucksnee Posted March 12, 2007 Report Share Posted March 12, 2007 Maybe i'm readiing it wrong but I disagree with #1. If you remove all your negative items and still have positive items on your credit report how does that equal bad credit? Unless your are talking about someone who had NO positive items on their CR. Then I argee.. Link to comment Share on other sites More sharing options...
tre3_77077 Posted March 12, 2007 Report Share Posted March 12, 2007 Good post. Link to comment Share on other sites More sharing options...
Mrs.TopoT Posted March 12, 2007 Author Report Share Posted March 12, 2007 Thanks for pointing that on out. Becoming an authorized user on someone's account is a quick fix, and a good way to build credit, but it does have a drawback. If some chance the account holder misses a payment, has a high debt to ratio on the account, or has it go to collection status, then it would also impact your credit rating. Only do this option if you truely know that the person is responsible with their finances. Link to comment Share on other sites More sharing options...
Mrs.TopoT Posted March 12, 2007 Author Report Share Posted March 12, 2007 Sorry, I didn't mean to confuse anyone. If the person has no positive tradelines on their account, and they remove all of the negative items from their account, then that's worse than having bad credit. No credit at all is what I was referring to. Sorry about that confusion. Link to comment Share on other sites More sharing options...
Mrs.TopoT Posted March 12, 2007 Author Report Share Posted March 12, 2007 A lender will actually consider financing a person with all negative credit, verses a person with absolutely no credit. Some times it is better to have a few negative items on your file verses no credit file at all. Very few lenders will finance a loan to someone without a credit file, and if they do then more than likely you will have an extremely high interest rate. Usually it will be higher rate than if you only had negative credit. (in which you would still have a high rate) Link to comment Share on other sites More sharing options...
pjfan Posted March 12, 2007 Report Share Posted March 12, 2007 Yes, that is a good point. I in my case the person has a credit score of 813, and credit cards dating back 20 years with no lates.Thanks for pointing that on out. Becoming an authorized user on someone's account is a quick fix, and a good way to build credit, but it does have a drawback. If some chance the account holder misses a payment, has a high debt to ratio on the account, or has it go to collection status, then it would also impact your credit rating. Only do this option if you truely know that the person is responsible with their finances. Link to comment Share on other sites More sharing options...
I hate EXP Posted March 13, 2007 Report Share Posted March 13, 2007 Thanks for pointing that on out. Becoming an authorized user on someone's account is a quick fix, and a good way to build credit, but it does have a drawback. If some chance the account holder misses a payment, has a high debt to ratio on the account, or has it go to collection status, then it would also impact your credit rating. Only do this option if you truely know that the person is responsible with their finances.I think as long as you're just an AU you can dispute the Tradeline and have it removed. Link to comment Share on other sites More sharing options...
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