Fast Credit Repair
by Oxfam International

Fix Credit Rating – Save your Credit From These Common Major Mistake

To fix credit rating there are some minor movements that seem like a good idea and a logical thing to do that end up dropping your credit score and leave you puzzled as to what happened.  The three points below are common occurrences, I know, it happened to me when I started to work on finding a fix to my credit rating.

To fix credit rating you’ll have to dispute some of the items you find on the report.  Its common to have easy fixes.  For example, having the creditor report your account in the best way possible for your score is one way to fix the credit rating.  Many times they simple report an account as paid.  Instead of paid as agreed.  Paid as agreed, gives you slightly higher points, about 4 to 6 more points.  Multiply this by a few accounts and were talking about 15 to 18 points.

If you’re looking to fix credit rating for something specific, for example buy a home or a car.  Don’t make the common mistake of closing any accounts.  Closing accounts is one of the single most damaging moves you can do to your credit.  At times we figure “well, if I don’t have that debt.  It’ll look better when I shop around.”  Wrong.  Closing accounts cuts your total available credit and credit history.

Here’s an example.  Let’s say you got your first credit card at 18 and you were the most exemplary borrower ever and you are now 28 with the same credit card.  Ten years of payments on time would have earned you a higher credit limit, lets assume 10,000.  Now let’s say that you got an awesome offer from some bank that said you can transfer your current 1,000 balance at your current credit company, to them and have zero interest for 2 years.  The new company is going to issue you a new card with a 2,000 dollar limit to start.  Sounds good and it is, if you do it and leave the original credit card open.  If you transfer and close your account with your first creditor you will have lost ten years of credit history and your total available credit would be at 50% of its max.  Giving you to high a ratio, if you leave things as they are you would have only 10% of your credit used.  See the difference.  Not to mention all the years you would lose.  This happens to often and people don’t see why it’s negative.

Another, common fix credit rating miss conception is to pay collections that have been lingering around for a couple of years.  You know the ones you know are there.  They aren’t high and they’re now telling you they’ll take 35% of what the total is.  Paying it of is good.  Not getting a deletion letter is not.  It reflects negatively when you pay because it brings the collection back current.  As the collection ages its negative effect diminishes.  When you pay it, it’s brought back to life, giving you again the opposite effect.  If you’re paying it off to make a credit purchase you’re going to be very surprised when you notice your credit score lower instead of higher.

Those are a few of the pointers I picked up from working on my credit recently.  Hope they help.

Fast Credit Repair