how to raise your credit score

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HOW TO RAISE YOUR CREDIT SCORE HOW TO GET CREDIT REPORTS, CURE REPORT PROBLEMS, REDUCE INTEREST, AND GET LOANS STEVE SYMES Financial Web Publisher IPPTS Associates [email protected] www.prepaidcreditcardz.org/

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How to dispute credit reports, cut debt, avoid interest and create a stable financial future, in weeks, not years...

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Page 1: How to raise your credit score

HOW TO RAISE YOUR CREDIT

SCOREHOW TO GET CREDIT REPORTS, CURE REPORT PROBLEMS, REDUCE INTEREST, AND GET

LOANS

STEVE SYMESFinancial Web Publisher

IPPTS Associates

[email protected]/

Page 2: How to raise your credit score

HOW TO RAISE YOURCREDIT SCORE

How to Raise YourCredit Score

How to check your credit reports, cutdebt, avoid high interest, get loans,and create a better financial future, inweeks, not years...

Introduction

Inside this report, you will learn:

1. What it Means When People Referto Their Credit Score: A credit scoreis not the amount of purchase thatyou incurred with your credit card andneither does the term refer to thepoints that you save for everypurchase that you make with thecredit card. This is not the meaning ofa credit score. Learn about it byreading this first article.

2. What Is Considered a Good CreditScore?: What is a considered a goodcredit score? A lot of experts say thatyou should get a score of 700 andabove so that you are able to get aloan at a lower interest rate. Learnabout this as well by reading this firstarticle.

3. How to Check Your Credit Score: Ifyou are thinking of applying for aloan, it will be a good idea to first

check your credit score. This will giveyou an indication whether yourrequest will be approved or not andhow much interest you will have topay. The scoring system used by allthree are different but all point to oneconclusion and that is whether or notyou have good or bad credit.

4. How to Understand Your CreditScore: Your credit score is calculatedbased on several factors. Thirty-fivepercent of the total score is based onyour credit history. But, there is a lotmore to it than that, as explained inthis report section.

5. How to Improve Your Credit Score:It may take some bit of work until youget the idea of how to improve yourcredit score. However, a credit scoremay be one of the most importantaspects of your financial situation,and in this article you will learn moreabout this vital subject.

Should your primary concern be torepay debt or to invest any extra moneythat you have to work with?

Cover image: By Sludgegulper via Flickr

DISCLAIMER: This information isprovided "as is". The author, publishersand marketers of this informationdisclaim any loss or liability, either

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directly or indirectly as a consequenceof applying the information presentedherein, or in regard to the use andapplication of said information. Noguarantee is given, either expressed orimplied, in regard to the merchantability,accuracy, or acceptability of theinformation.

#1. What it MeansWhen People Referto Their CreditScore A credit score is not the amount ofpurchase that you incurred with yourcredit card and neither does the termrefer to the points that you save forevery purchase that you make with thecredit card. This is not the meaning of acredit score.

Although it does involve credit per se, itdoes not only refer to credit cards but tocredit in general, or in more commonterms, a loan. A credit score is thenumerical product of your credit history,from the loans that you incurred incollege to the purchases that you makewith your credit card. All are beingrecorded and filed under one credithistory that can come back and huntyou if you are not careful.

A credit score is used by banks andlending companies to make decisions

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on your loan applications. With a not sogood credit score, you may get rejectedfor a loan or if you are lucky will begiven a fraction of the amount that youare asking, for a higher interest rate anda shorter payment period.

A credit score, you see, determineswhether a person is reliable enough tobe given the money to as a loan. Foralthough, they will be earning from youthrough the interest rates that they puton the loan, banks and lendingcompanies are still cautious becausethey do know that they cannot just lendtheir money to people they don’t know ifable to handle money.

A credit score depends on a lot offactor. One of which is your reputationas a borrower. Are you always late inyour payments for your credit card? Areyou always knee deep in debt becauseyou cannot seem to get around topaying each one until the interests werejust too high?

Do you have maxed out credit cards?Have you had any other credit or loanthat you have paid for or are stillpaying? How many are they? Have youhad any problems paying for yourloans? These will figure in the creditscore that you will have.

Other considerations that make up yourcredit score is income that you arereceiving currently. People who havehigh income are generally perceived assomeone who can handle a loan.Another factor besides the ability to payfactor is the amount of debt that youhave. If the bank feels that it is too much

debt for one person, they can easilyreject your application.

There are many ways to get a creditscore. The industry standard is theFICO score, named after its creator FairIsaac Corporation. FICO score is beingused by credit reference agencies, thatwill gather the materials about yourcredit history and then determine fromtheir the credit score. Some use theirown scoring systems that arecomparable with the FICO score.

The FICO credit score can now bedetermined by purchasing it over theinternet through the website of creditreference agency, Equifax. The fee is$12.95. The other two credit agencies,TransUnion and Exparian are alsoselling their own score for roughly thesame amount although TransUnionpackaged it with their credit historyreport that people can purchase online.

So now you know what the meaning ofa credit score is? Let’s hope you willwork on your own credit score.

#2. What IsConsidered a GoodCredit ScoreWhat is a considered a good creditscore? A lot of experts say that youshould get a score of 700 and above sothat you are able to get a loan at a lowerinterest rate.

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Is this easy to achieve? Given that 60%of Americans can do, then the answer isyes. You just have to pay your bills anddebts on time to avoid incurring anypenalties that could have a red flag onyour credit report.

The reason why there are still peoplewho cannot get a good credit score isbecause they have spend beyond theirmeans. They are unable to resist thetemptation to use that piece of plastic ina store thinking that they can get awayjust paying the minimum requirementmonthly but the difference grows thanksto interest.

What happens is that they encounterlate payments and are marked as“unpaid.” This is then reflected in theircredit report which creditors will see andwill make applying for a loan difficult toalmost impossible.

The only solution is to clean up your actand pay these debts. You will probablyhave to cut down on your expenses andsell a few items. If this is not enough,work overtime if the company you workfor allows you to do so. If it doesn’t, seeif you can get a second job.

Try borrowing money from friends andrelatives. The nice part about borrowingfrom people you know is that you won’tbe charged an interest fee. Just andmake sure you pay them.

Could this have been avoided? Yes ifyou were able to monitor yourexpenses. One of the present problemsright now here in America is the housingcrisis and if are one of those thatcouldn’t pay for it anymore, this has asignificant effect on your credit score.

Now that you know what is consideredto be a good credit score, the questionnow is can you do it? This is somethingyou can answer on your own but if youneed help, there are financial advisersthat you can call on to help. You willhave to do your share as well bysticking to the map that has beenplanned out.

If you are just a few points away fromreaching 700, look at your credit reportagain to see if there are any errors.Chances are, there is one there that youcan correct as long as you can prove tothe crediting agency that this is not true.

Since they won’t take your word for it,

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be sure to have the supportingdocuments. Never send the original andinstead send photocopies so you stillhave something to show later on. Oncethis is with them, an investigation will beconducted. If your claims are true, thenthey have no choice but to make thecorrections on your credit score.

The factors that are used to measureyour credit score varies among thedifferent crediting agencies. With thatsaid, there is no standard as to what isconsidered to be a good credit score.Through the years, it was just acceptedthat anything above 700 is good so untilthis is standardized, this is somethingthat everyone must hope to attain.

#3. How to CheckYour Credit ScoreIf you are thinking of applying for a loan,it will be a good idea to first check yourcredit score. This will give you anindication whether your request will beapproved or not and how much interestyou will have to pay.

So how do you check your credit score?For that, you will need to get it from acredit agency. These three are namelyExperian, Equifax or Transunion.People can log in to their site andrequest a copy which is absolutely free.

Your credit score could range from 350to 750 points and the higher it is, thebetter. If your score is below 700, thenyou need to improve on it.

You do that by knowing your currentcredit score and then reviewing it. Lookfor errors and if there happens to besome, take the appropriate steps to fixthem. You should call the credit agencyto report the error and then send thesupporting documents by mail.

Never send the original copies becauseif they lose it, you have nothing left tosupport your claims so sendphotocopies.

The next step is for the crediting agencyto conduct an investigation into thematter. If your creditor cannot produceanything, then the error is immediatelyremoved from your record and a revisedcopy will be sent to you free of charge.

But if the report is correct, then you willhave to take the appropriate steps to

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remove it. Your credit score may godown depending on your credit history.If you have unpaid loans or haveincurred late payments in your creditcard, then you have to pay them.

Remember that these things will be inyour credit report for the next 7 yearswhile filing for bankruptcy lasts for aboutten so you can’t run from it.

You will have to find a way to come upwith the money by working overtime,cutting down on your expenses, gettinga second job or selling some of yourvaluables. If you don’t know what to do,it wouldn’t hurt to swallow your prideand ask for help as there are financialadvisers that are willing to help you gothrough this time.

If things are not that bad, perhaps youcan make a deal with your creditor sothis will not appear on your record thushaving no effect on your credit score.Just make sure you stick to the bargainbecause if you fail to do so, don’texpect them to be so generous the nexttime this happens.

A year later, you can request for a newcopy of your credit report to see if thesteps you have taken have paid off. Ifyou see a significant improvementversus the year before, you know youare doing something right and youwon’t have a problem anymoreapplying for a loan.

Checking your credit score is somethingpeople should do regularly by getting acopy from a crediting agency. There arethree to choose from and you can get a

copy from all three at the same time orevery few months.

The scoring system used by all threeare different but all point to oneconclusion and that is whether or notyou have good or bad credit.

#4. How toUnderstand YourCredit ScoreNumbers have different meanings. Inschool, you are given an “A” if youexcel in a particular subject. In the realworld, a 600 or 700 could have an effecton your ability to get a loan. This iscalled your credit score and to give youan idea, here is an explanation.

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The credit score is an indicator that tellslenders if you will be able to pay theamount that will be loaned to you. Thescale goes from 340 to 750 and thehigher it is, the less risk the lendinginstitution is taking because they knowyou will be able to pay for it withinterest.

If your score is below 700, you can stillapply for loan but expect to pay at ahigher interest rate as this is the onlyway that the lending institution can besure you will be able to pay them back.

Your credit score is calculated based onseveral factors. Thirty-five percent of thetotal score is based on your credithistory. You could get a perfect scorehere or have a few deductions if everyou have had any late payments orbankruptcies. The more recent it is, thegreater the deduction.

Thirty percent is based on outstandingdebt. This may come from car or homeloans, credit cards bills and utilities. Ifyou use your credit, make sure you onlyuse 25% of the limit or less so it doesnot have effect on your credit score.

Fifteen percent of the credit scorecomes from the length of time that youhave had credit. The longer you have it,the better because this will givecreditors an idea of your consumerbehavior.

Ten percent of the score is from thenumber of inquiries you have made inthe past. The trick here is not to havemany inquiries. Those who do inquirefrequently give creditors the impressions

that you are piling up your debt.

The last ten percent is based on thetypes of credit you currently have. Thisincludes the number of loans andcredits that are available to you. Thisweighs heavily when you are justestablishing your credit history.

There is no actual passing or failingmark when it comes to your creditreport. However, creditors havedesignated 700 to be the ideal creditscore you should get. Sixty percent ofAmericans are able to achieve this so itshouldn’t be that hard for other people.

But if you are one of those that are notable to reach it, you can still improve onyour score. If you have outstandingdebt, pay for it. If these are credit cards,make sure that this is paid on time.

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If you are having a hard time, try tonegotiate with the lender so anarrangement can be made and thisdoesn’t have to appear anymore onyour record.

Now that the credit score has beenexplained, you will now be able tointerpret what those three digit numbersmean when you get a copy of yourcredit report. Aside from looking at thetotal score, review each item carefullyso that if there are any errors, this canbe reported and corrected.

The credit score also changes annuallyso don’t forget to get one a new one thefollowing year.

#5. How to ImproveYour Credit ScoreIt may take some bit of work until youget the idea of how to improve yourcredit score. A credit score may be oneof the most important aspects of yourfinancial situation that would need yourconstant monitoring, especially if youalways have the need to borrow moneyfrom lenders. Having a low credit scorewill ensure you of having trouble gettingyour credit application approved as youwould have wanted.

Your credit score tells lenders of howdependable you are as a borrower.From your credit score, lenders andcredit institutions may be able to gaugeyour standing as a borrower. That isbecause the credit score is amathematical measure of a person's

borrowing habits and behavior based onsome important credit factors. A formuladeveloped by the Fair Isaac Corporation(FICO) is usually used to calculate forone's credit score. That is why yourcredit score is also usually referred to asthe FICO score.

When you have a low credit score, ittells the lender straight away that youare not a very prospect as a borrower.This may be based on your previouscredit accounts from which you mayhave defaulted on, late payments ofdebts, bankruptcy or foreclosure issuesthat you may have in the past and othersimilar factors. The higher your creditscore, the more attractive you are as aborrower in the eyes of the lenders. Thismight mean that your credit applicationfrom them might just be easier toapprove.

There are many ways that you may beable to improve on your credit score.This will include having a closer look atyour current credit standing. If you dohave outstanding credit to take care of,it would be good to pay your bills ontime. Delinquent payments of youroutstanding credit have a majornegative impact on your credit score. Itis also important to note that the longerthat you try to pay your bills on time, thebetter it will be for your credit score.

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If you do find yourself missing on somepayments, it may be wise to get currentas quickly as possible on your paymentsif you so can. Staying current with youroutstanding credit accounts may alsohave an effect on your credit score.What's more, your credit record, alongwith the missed or delinquent payments,may reflect on your credit report and willstay there for a period of seven years. Itwill be looked upon as a smudge onyour report even after you have paid offyour debt.

If you find yourself having a hard timemanaging your outstanding credit, itmay be time that you contact yourcreditors or ask for the help of aqualified credit counselor. These actionsmay not immediately improve your owncredit score. But the sooner you act inmanaging your debts well and payingyour bills on time. It will eventually make

your credit score better over time.

Once you learn how to improve yourcredit score, the better your chances willbe on availing of a much needed loan ormortgage when you really need it. Itwould be frustrating for one to apply forsome much needed credit and not getapproved in the end, all because of alow credit score.

Improving your credit score can alsoassure you that you have better creditoptions especially during times that youmight need it most.

Keep in mind that very rarely do youhave to rush to a decision. Take yourtime and make choices that willbenefit you both in the short termand for your future. Ultimately, it's upto you to decide how you want to spendyour money. Follow these tips to helpyou make a decision you'll be happywith.

Wrapping up...

In this report, we've shown you:

What it means when people refer totheir credit score

You found out using our text, what isconsidered a good credit score.

We explained how to check yourcredit score: if you are thinking ofapplying for a loan, it will be a goodidea to first check your credit score.

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This will give you an indicationwhether your request will beapproved or not and how muchinterest you will have to pay. Thescoring system used by all three aredifferent but all point to oneconclusion and that is whether or notyou have good or bad credit.

We discussed how to understandyour credit score, once you get it.

We gave you tips on how to improveyour credit score: and in this articleyou will learn more about this vitalsubject.

However, this is just the beginning. Ifyou'd like to know more about debt, andways to repair your credit then you mayfind the following article useful:

SPECIAL REPORT:

Is It Possible To BoostYour Credit Score By135 Points Or More InJust 37 Days, Even IfYou're Close ToBankruptcy And Can'tAfford an Accountant?

According to Chris, a leading "DIYFinance" Expert in the US, and owner ofthe popular website 37 Days to CleanCredit, the answer is yes!

"Like millions of hard-workingAmericans... struggling to get by, I wasgetting denied for credit everywhere Iturned. Yes, part of it was my fault, butthe credit card approvals came so fast Icouldn’t resist. It started back in collegewhen I got my first credit card. Likemany young people, I quickly rackedup over $14,000.00 in student loansand credit card debt. Not to mention, Ibarely had any income, so I wasmissing payments left and right", Christells us.

Why most people struggle

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"The first thing I did was try aso-called “professional” credit repairagency, but… they simply took mymoney and didn’t help me one bit. Infact, not long after I signed on the dottedline with a company that was supposedto help me.

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I saw an article quoting EileenHarrington, Deputy Director of the FTC'sBureau of Consumer Protection. Here’swhat she said…“Credit repairschemes are a big problem forconsumers. Credit repair promotersgenerally charge hundreds of dollars,but don't deliver on their claims."Geez, I wish I knew that before I flushed$400 down the drain."

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This ebook is from, the creatorsof http://prepaidcreditcardz.org/blog .

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