- How to Quickly Fix Bad Credit - briandario
A poor credit history not only makes borrowing money more expensive, it decreases the likelihood of credit approval. Whether it is possible to quickly fix bad credit scores depends heavily upon the severity of the transgression. Fast credit repair is achievable when a payment has been made outside of the grace period, but fixing poor credit following default, account delinquency or chapter 7 bankruptcy takes considerably longer. The sentence fits the crime, so to speak. Don't believe the promises or guarantees of any service that promises to rapidly improve a credit rating or get their client a new report as it's not legal.
Remove Credit Report Errors to Fix Credit History Problems
The first step towards improving credit scores is requesting a copy of a credit report from the three major credit reference agencies. It is important to get information from Experian, Equifax and TransUnion as each agency holds completely different information. All U.S. citizens are legally entitled to a free credit report every 12 months. Once received, review this for inaccurate information as creditors are unable to tell the difference between bad and adverse data. Things to look out for include:
- Credit agreements and applications that were never made. They not only lead to a lower rating, but could be a sign of identity theft.
- Any poor credit that has lapsed, yet continues to show as active. After a period of seven years, these negative items should no longer show.
- Incorrectly settled accounts. For example, accounts that show as paid charge-off, settled or paid derogatory instead of paid on time and in full.
- After filing for bankruptcy, make sure that any accounts included in the agreements no longer show as active.
Provided that the appropriate supporting information is provided, there is an obligation for agencies to begin to fix credit history problems within 30 days. It doesn't always work out that way, but a credit attorney can be used to expedite the process. Either way, eliminating errors is amongst the most effective ways to quickly fix bad credit scores.
Manage Revolving Debt Better to Quickly Fix Bad Credit Scores
There is no credit history repair method that works overnight, but there are some revolving debt issues that can be improved relatively quickly. Never max-out a credit or store card. Liz Pulliam-Weston of MSN Money stated that: "You typically can increase your scores by limiting your charges to 30% or less of a card's limit." The best results can be achieved by using under 10% of the allocated limit in a single month. If a card hasn't been used in quite a while, don't shut it down. A better credit rating can be achieved by using it occasionally and settling the balance in-full at the end of the month. It is also inadvisable to pay old credit card debt that has lapsed under the statute of limitations. This not only leads to the debt regaining its newness, it also gives creditors greater legal recovery powers.
Fast Credit Repair is a Relative Thing
It may not be possible to quickly fix bad credit, but it is relatively easy to expedite the credit history repair process with the above help and by paying debts punctually now and in the future. Although any adverse will show for a period of seven years, it is possible to qualify for loans, mortgages and cards a lot faster. Even following bankruptcy or property foreclosure, that person may still be able to get a bad credit mortgage in as little as two years.
Sources
Pulliam-Weston, Liz. (March 18, 2010). "7 fast fixes for your credit." MSN Money.
Asa Ghaffar - Asa has over 10 years of practical experience in loan approval, secured lending, bad credit repair, stock trading and debt management.
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