Get The Best Credit

Improve Your Fico Credit Scores.

To get the best credit and interest rates you must have the best fico credit scores. These strategies will help you improve your fico credit scores and qualify for the best mortgage rates, auto loan rates and credit cards. Implement these to improve your credit score today.

Legal Credit Repair.

You have the right to legal credit repair. Whether you do it yourself or hire a professional company to assist you to remove items off of your report that are either inaccurate, improperly reporting or just do not meet the legal standards required for the credit reporting agencies to follow in reporting your credit history. So the number one strategy that many people use to improve their credit scores is to dispute those items. It is an effective method especially if the you stick to it. Unfortunately, the credit reporting agencies are not eager to help you. In some cases they have been known to arbitrarily dismiss many consumers disputes as frivolous and unfounded. This deters a lot of people. It has been said that as much as 20% of all disputes submitted to the credit reporting agencies are dismissed as frivolous. That means 80% are reviewed and worked on. Chances are if you dispute the inaccuracies one or 2 more rounds that they will be properly reviewed and handled.

Reduce Your Balances and or Increase Your Credit Limits.

A second strategy almost as effective as disputing negative items on your credit report is to reduce the balances on your credit cards and or increase your limits. The balanced owed on a credit card as a percentage of the high credit limit affects your credit score. They higher that ratio the lower your score. The lower the ratio the higher the score. This factor alone can account for one client who pays his bills on time every month with a credit score of 750 while another client who also pays their bills on time every month only has a 600 score. A 750 is considered very good credit while a 600 score is fair and the consumer would not qualify for most credit programs. If they do qualify they would pay a higher costs. On time payments account for 35% of your credit score. The available credit percentage factor represents 30% of your credit score. These two strategies alone can account for 65% of your total score.

Negotiate Old Collections and Late Payments.

The older negative items are on your report the less impact they have on your credit score. To improve your fico credit score you want to remove them completely from the report. If you pay them off or make payment arrangements you create a new activity that make the negative item a recent activity therefore effectively lowering or worsening your score. This is the exact opposite of what your intentions may be. To improve your score negotiate with the creditor to pay the item off at a reduced amount and for that they must complete remove the item from the credit bureau. You must get this in writing before you send them the money. Otherwise they have no incentive to follow through and remove the item.

Finally Strategies.

These three strategies will help you improve your credit score and allow you to qualify for the best credit at the lowest interest rates. Other strategies to remember is time. The longer an account is open the more positive points you add to your credit score. The type of accounts you have also affect your score. Mortgages and installment loans have the highest value, then major bank credit followed by national department store accounts. All other accounts, though they affect your credit score they have less of a positive impact. Use these strategies to improve your credit, get a mortgage, credit card or auto loan.

Louis J.

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Manage Your Credit Score.

The days of easy credit are long gone. With the economy being in turmoil and the banking system suffering massive losses over the last couple of years it is so important that we are diligent in managing our credit and managing our credit scores. To qualify for a home mortgage, have a car financed and even get a credit card today requires a higher credit score than years past. Therefore it is so important that we make sure our FICO scores are as high as they can be.

Improve Your Credit Score.

Many people falsely believe that just by paying their bills on time they will have a good credit score. This is the furthest thing from the truth. As a matter of fact your payment history only accounts for 35% of your FICO score. There are people who are never late on their bills with a 600 score and some with an 800 score. These tips below will help you improve your credit score.

1. Reduce the balances on your credit cards.
2. Increase the limits on your credit cards.
3. Try not to close out an account even if you no longer use it. Length of history increases your score.
4. Monitor your history with an credit monitoring service.
5. Limit inquiries to your accounts.
6. Do not frivolously apply for credit. Excess credit lowers your score.
7. Review your credit reports annually for errors and dispute any negative items.

These seven tips can help you keep your score high and help you qualify for financing and get the best rates available.

Risk Based Pricing.

This is not a new concept but it is very prevalent in today’s market. What risk based pricing means is that lenders access the risk and price accordingly. Your credit score is a primary factor and sometimes the only factor that determines the risk to a lender. Therefore, the higher you score the lower the risk. The lower the risk the better the pricing. Conversely a low score will cause you to pay much more for the same services. Hence the importance of managing your credit and especially your score.

Your Mortgage.

As a mortgage banker for over 20 years I have never seen credit as tight. In the past if you had a stable job, made your payments on time and could afford the payments based your your income and existing debt you would qualify for a mortgage. But with the advent of the computer models and easy credit that backfired credit is tighter than ever. Worse than that people who have always been faithful to pay their bills on time are suffering. As we fight to change the system by supporting politicians whose plans will make this an equitable playing field, we must learn to ensure we get the best financing options possible. That means focusing our efforts to manage our credit and our scores based on the 7 tips above. This way you can get the best credit score and the lowest rates possible.

Republished by Blog Post Promoter

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Legal Credit Repair.

Credit Repair is legal. Can you really improve your credit score? There are a number of federal and local laws that govern the reporting of consumer credit information. Each of these laws offer provisions for the consumer to challenge information that is reported by the credit reporting agencies that is erroneous or just reported wrong. So first we must know that credit repair is legal.

Are Credit Repair Companies Legitimate?

In the past many credit restoration companies where either out right scams, multi level marketing schemes, pyramid companies or just ma and pa shops that would take advantage of the vulnerable consumers. Today there are laws that protect the consumers against such companies. The Federal Trade Commission as well as state agencies monitor these companies and are tasked to enforce the applicable laws that govern such repair and restoration entities. Also the legitimate companies thought it important to monitor themselves so the formed trade associations like many other industries to set higher standards of protection and service for the consumer. These associations set the bar high for companies seeking to be associated with them so they can improve the image of the industry, especially member companies. So with a little due diligence it is easier to find reputable credit improvement companies that do not over charge and under deliver.

Does Legal Credit Repair Work.

Yes it does. There are thousands of people who have their credit improved with the assistance of such companies every month. I could ask you to take my word for it, but who am I to you? This is a testimony of a loan officer who submitted one of his customers to have their credit score improved and a mortgage late payment removed and here are the results:

I referred a borrower over mid July with a score of 598.  Not quite 2 months later, I repulled credit to find his middle score jumped 100 points!!!   And a mortgage 30 day late was taken off.  The loan is going to be subbed tomorrow!  Love it when that happens.  I was honestly just hoping that I could get his score above 620 to do an FHA refi.  After having a conversation with Specialized Credit, we decided to re-pull credit and see what we could do.   After pulling credit, he now has a mid score of 680 and his 30 day mortgage late was no longer there.  Not only could I do a refinance for him, I can now go conventional at a lower rate with no mortgage insurance.  Saving him $768 a month by paying off credit card debt that he is now paying 14% on.  Taking his mortgage rate from 6.625% to 4.875%.  This also gives him 20K cash out.  HUGE deal for him.  He is taking care of almost $15,000 in credit card debt and getting 20K cash out for a lower payment than he is paying now on his mortgage. Thanks Specialized!!! That is a $4K deal in my pipeline!!!

Marty Blackmon
Loan Specialist
Salt Lake City, Utah

See The Benefit.

This is not just to improve a credit score. Credit restoration is all about a financial benefit. In this case the customer lowered their interest rate and saved over $750.00 per month plus put $20,000.00 in cash on top of the savings. Yes being able to improve your credit score is a great feature. To lower your mortgage payment and get cash out as you refinance and consolidate your bills is the benefit that makes it all worth while. If you are a consumer who wants to improve your credit score send me an email at louisj@howtogetthebestcredit.com or leave a comment below. All comments are moderated and we will not publish or share your contact information.

Republished by Blog Post Promoter

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