Ways to Improve Your FICA Score
Posted: Thursday, August 12, 2010
by Dr. Carla Goddard
Does it really matter what your credit score is to obtain a mortgage or car loan? The truth is that a good to excellent credit score is the key to leveraging your buying power. If your score is lower than you would like there are some ways to improve the not so perfect credit score.
Understanding that it is not the government that holds the key to your credit records; it is credit reporting agencies. There are five major credit agencies that provide 90% of this service. Reports will show the basic information such as your name, address, employment history and social security number. They will also show anyone that you have had credit with, your repayment history (including past due charges),and any delinquent liens. These lovely reports will go back for 7 years with the exception of bankruptcies which are held for ten years.
1. Obtain a copy of your credit report. Ensure all information is correct. If there are any discrepancies - address them now, not later.
2. When speaking with credit reporting agency on discrepancies, ask to have a customer statement attached indicating that the item is in dispute. The credit reporting agencies refer to this as a "consumer statement".
3. Obtain a secured credit card. A secured credit card is either a MasterCard or Visa that is secured with a savings account.
4. Once you have obtained a secure credit card start applying for instant credit or courtesy cards. These are available at many retail locations. As soon as you get an instant courtesy card use it that same day for a minor purchase. The instant card is only a temporary card and you may not receive a permanent card.
However, if you purchase an item with the temporary instant card and pay it off according to the terms, it will appear as a positive report on your credit. Each purchase paid off in this manner will establish a positive credit mark on your report.
5. Apply for a credit card you do not think you will be approved for. After being turned down for any credit including credit cards, you are allowed a free copy of your credit report for 30 days with those reporting agencies.
6. Once a negative item is about to be cleared, get a written statement called a "fulfillment agreement" from the merchant. This will remove the negative item completely from your credit report.7. Once you have identified which agencies have a negative report, find a lender that uses a different agency. Not all agencies are equal.
Even those with good credit can and should follow these simple guidelines to improve their credit. Remember, your credit rating is your license to borrow. Don't let it get suspended.
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