What's the most effective way to clean up my credit /score?

Question

Besides paying everything off, not charging too much etc. What else in the meantime that may be helpful???....Any tricks of the trade you have learned over the years on erasing things on reports, and/or demanding companies to change things that has adversely affected your score???

Answer 1

Yes,

Piggyback someone elses credit : http://www.expert-credit-advice.com/building_credit.htm Read......


Also, dispute everything until they go away...


Do it yourself for free: http://www.expert-credit-advice.com/free_credit_repair.htm

Pay someone to do it for you: http://www.expert-credit-advice.com/credit_repair_service.htm

Answer 2

It depends on what your goals are. Paying off loans and credit cards will raise your score significantly. If you have too much debt in various places, a consolidation loan is almost always the best strategy towards paying them off.

When you get a consolidation loan, you can make a habit of just paying the interest on the loan then put 25% of your after-tax income into a money market fund. This will build up very quickly over a period of a few months. You will get a history of saving money (which will help your credit) and be able to pay down your consolidation loan at the same time.

If you're new to the country, then its worthwhile to take out small loans $1,000 to $5,000 and pay them back quite quickly. Another thing to do is sign 1-year memberships at gyms (if you're going to go to one) or 1-year leasing agreements for an apartment.

If you're thinking of repairing your credit with the idea of buying a house, you should consider a credit repair agency. They might cost $10,000 up front however they might raise your score from 700 to 800+ by the time they are finished. This might contribute to you saving up to $10,000+ on your mortgage payments each year.

Answer 3

Pay your bills on time. Thats a big one. I never know how much that mattered until I started doing it. All you can really do is go forward. If you get credit cards keep the balance down and pay them off right away. Personally, I'm not a fan of credit counseling but I've heard it works for others. There are several books you can get either at a library or a book store that will give you more advice. Good luck!!

Answer 4

The best way to clean up your credit is to close any credit that you are currently not using. The more open credit you have the more points are counted against you. Also, if you can combine credit card accounts into one and close the other one it will also help you since a credit rating is made by looking how many open accounts with balances there are also. In addition, you can obtain an annual free credit report at freecreditreport.com, review your credit report and note any discrepancies. Then you can contact Experian, TransUnion and/or Equifax concerning any errors on your credit report. If there is a misreported item, they need as much "backup" as you can provide to them and they will contact the company to correct the error. Try and limit the amount of credit you receive and keep your balances going down instead of up. The closer you are to your credit limit, the lower your credit score will go.

Answer 5

well, dont apply for the "no interest or payments until 2009", mostly done for furniture or cars.They are mostly financed by Time Company and since they are taking such a risk on the loan, they lower your ficos, up to 40 points! By the time, 2009 comes, you will pay the original loan plus accumulated interest. Dont apply for a 1.00% mortgage loans either. You end up increasing your original loan amount and it would look like you are maxing out your mortgage.

Answer 6

You pretty much answered your own question. Pay when you get the bill, all at once if possible and keep that up. Keep maybe two credit cards and just keep up the payments and never be late.

Answer 7

I suggest you first understand just what goes into your credit score :

http://financialbasics.blogspot.com/2006...

Then you'll be better equipped to improve your current score AND keep it up :

http://financialbasics.blogspot.com/2006...

Credit is a numbers game. The better you understand the system, the better off you are.

Answer 8

the most effective way is no late payment.

there is no free lunch in US, you pay now or later either way just personal preference.

Answer 9

The truth is the day the bill comes in you pay it.

Answer 10

www.myfico.com/Offers/myFICO_UYCS booklet.pdf