by Carlos Hernandez
Marketing a credit repair business is almost as easy as getting the business up and running. 90% of all credit reports have errors, out dated items, and incorrect information. Most people you know have bad credit, so this creates a big need for your services. Thousands of people need you help. Credit repair professionals are very important. You have the know how and skills to make a difference in someone’s life. There are many ways to market your credit repair business, but here are a couple that have worked for me:
Friends and Family
Like I said before, 90% of all Americans have bad credit, so chances are, you may have some people with credit issues in your family or circle of friends. This is the best place to get your first clients. I actually started out by practicing on my friends and family at deeply discounted rates. This gave me the knowledge and confidence I needed to be very successful. It also gave me the opportunity to change some lives I really care about for the better.
Real Estate Professionals
Real estate agents and mortgage brokers are always looking for a credit repair professional that can get results quickly. They run into many potential homeowners who can’t qualify for a mortgage because of their credit history. Here’s where you expertise comes in. There are special ways to approach real estate professionals when looking for business, but the process is easier than you think. They are a steady source of business if you provide results. These guys are looking for someone who can get scores up quick. The clients they refer to you are going to be highly motivated because they desperately want to own a home. This is probably your best source of referrals when you consider the quality.
Car Dealerships
This is also a very good source of referrals. These sharks will kill for a results oriented credit repair professional. Many people get turned down for auto loans on a daily basis because of bad credit. Car salesmen will provide you with clients, but there must be something in it for them if you know what I mean, so be creative and careful what you promise, as you should always be.
Starting a credit repair business is always a great idea because you will never run out of clients. You are a credit repair professional, but you are also a high powered marketing guru, because the competition is out there coming up with creative ways to get more business. Always try to go out of the way to go against the norm when creating your marketing campaign. If you have an idea that sound crazy or weird, don’t be afraid to try it out. You never know.
About the AuthorThe credit repair business is booming. Learning how to start a credit repair business has been a hot topic in many online blogs and message boards. Starting a credit repair business is a great way to go if you are looking to start a successful business with a limited budget. Visit http://www.creditbiztoday.com to learn more

Once the credit reporting agency has received your dispute letter, they are obligated to investigate. This obligation is not contingent upon you having been denied credit. According to the Fair Credit Reporting Act of 1997 (see Attachment 3), the credit bureaus must take the following steps:

The credit reporting agencies must resolve consumers’ disputes within 30 days limit
In response to consumers’ complaints that documentation in support of their disputes was disregarded, the credit bureaus have to consider and transmit to the furnisher all relevant evidence submitted by the consumer the first time.

Consumers will receive written notice of the results of the investigation within five days of its completion, including a copy of the amended credit file if it changed based on the dispute.

Once information is deleted from a credit file, the credit bureaus can not reinsert it unless the entity supplying the information certifies that the item is complete and accurate and the credit bureau notifies the consumer within five days.
The Federal Trade Commission says that inaccurate credit reports are the number-one source of consumer complaints, and that it is quite common for problems to take six or more months to be resolved. All of the big-three agencies are working on making sure that all disputes are handled within 30 days.

If the new investigation reveals an error, you may ask that a corrected version of the report be sent to anyone who received your report within the past six months. Job applicants can have corrected reports sent to anyone who received a report for employment purposes during the past two years. However, this is unlikely to repair any damage done when your credit report was first pulled, so don’t waste your time or energy on this approach.

by Floyd Dorrance

There’s a lot more to “credit score” than just the basics.

Having a good credit score rating means. It is something that you should have in order to live life comfortably. This is why many people work hard in order to have good credit rating score.

You now ask what things you can benefit from by having a good credit score.

First of all, a good credit score can increase your chances of getting the loan you apply for and secondly, it will help you get certain jobs and programs that will require good credit score. These are the two main reasons why you need good credit score.

If you are plagued with bad credit score in the past, you now ask how you can get good credit score again or how you can repair your credit score. It is important to realize the fact that if you have a bad credit score, you will need to repair it as soon as possible before your credit score becomes much worse.

Repairing a bad credit score will require you to have patience and also a little luck. By repairing your bad credit score as soon as possible, you will never miss out on any more great opportunities that will cross your path in the future.

Before you start repairing your bad credit score, you first need to understand what credit is all about. You have to know how it can affect you life. For example, if you are in need of a loan, lenders will take a look at your credit rating to determine if you can be approved for the loan. A good credit rating will ensure the lenders that you pay your loans on or before the deadline, This will ensure them that you will be able to pay the loan you apply for. The same applies when you are applying for a credit card.

Now that you know what it means to have a good credit rating, the next thing you need to do is to determine if you have a good credit rating or not.

If you find yourself confused by what you’ve read to this point, don’t despair. Everything should be crystal clear by the time you finish.

to be continued

by Floyd Dorrance

Not many people know if they have a good credit rating or if they have a bad credit rating. To know about your credit score, you can simply ask for it in several credit reporting agencies. They will be able to provide you with a numerical indicator of how much your credit rating rates and how much credit risk you are.

If the indicator says that you have a high score, this means that you have a good credit score, if you have a lower score, then it will indicate that you have a bad credit score and will be far more risky to get approved for loans.

So, if you have a bad credit rating, the first thing you need to do to improve your credit rating by takeing care of old debts. By paying all your old debts, this will stop the creditors from making negative reports to credit reporting agencies.

This is the first thing you have to do in. By cutting the source of negative credit reports, you will be well on your way to getting a good credit score.

However, paying all your debts doesn’t necessarily mean that you will instantly get good credit rating. You have to remember that this will just stop it from getting any worse. Your old bad credit score will still be there. So, obviously the next step would be to start looking for ways to make some positive reports on your credit rating.

You can do this by applying for a credit card that is designed for people who have bad credit rating, such as a secured credit card. You should also start opening a new savings account or checking account. Always remember that you should pay your balance on time in order for you to establish a positive credit report.

Eventually, your old bad credit score will expire in time. Always keep paying your debts on time and your credit history will look better than in the past. However, it will usually take around 5 to 7 years for your old credit report with negative reports to expire. This is why patience is very important.

With patience, you will see that in time, your credit score will rise and get rid of those negative reports that you had in the past. Always remember to keep paying your debts on time in order to continue to have a good credit score.

Of course, it’s impossible to put everything about “credit score” into just one article. But you can’t deny that you’ve just added to your understanding about “credit score”, and that’s time well spent.

About the Author
The author, Floyd Dorrance is a professional researcher of a variety of articles.

For a Completely FR*EE Turnkey Business: http;//my-info-hut.info

By: Mark Henry

Why is credit repair important? It comes down to one simple thing - saving money.
Everyone has a credit report. It turns out that about 70% of all credit reports contain inaccurate or untimely information. This can have an adverse effect on your credit score and that can cost you money. Credit repair is the process you undertake to remove or correct these errors on your credit report.

The great thing about repairing your credit is it’s not difficult to do. The first step is to obtain a copy of your credit report. If you have been turned down for a loan or credit, you are entitled to a free credit report within 60 days of the rejection. You are also entitled to 1 free report from each of the 3 credit reporting agencies each year.

The next step is to let the credit reporting agency know in writing what information you think is inaccurate and request that it be removed or corrected. Make sure you send the letter by certified mail so you have a receipt with a record of when you sent it. Always keep copies of your letters.
The credit reporting agencies have 30 days to investigate your dispute and get back to you. If they find the information under dispute to be inaccurate, they must notify all three credit reporting agencies and the creditor or organization that provided the information. All of them must correct the information in your file.

When the investigation is complete, the credit reporting agency will provide you with the results and a copy of your updated credit report for your review.

If the investigation does not resolve the issue, you can request to have a statement of the dispute added to your file and on future credit reports.

Then you need to send a letter to the creditor or organization that provided the inaccurate information, telling them that you dispute their information. Include all documents that support your position. If the creditor reports the information to a credit reporting agency, it must also include a notice of the dispute.

So why go through this exercise? Your credit score determines how much interest you pay on loans or credit. If you add up how much interest you pay on your car loan, home mortgage and insurance, you can see just how much money is at stake - it can be thousands, tens of thousands or even hundreds of thousands of dollars. It can even determine if you get a job or not.
Credit repair is vital in making sure your credit report is accurate so you can save money - sometimes a great deal of money.

Mark Henry is the author related to Credit Repair Software, Bad Credit Repair Credit Repair Software Kit only at creditrepairsoft.com. Buy Credit Repair Software to repair your credit rating, to raise your credit score and to maintain an excellent credit score.

After reviewing his credit reports, Edouardo made copies, then highlighted everything he saw as a negative listing. Most of them were medical collections, and were easy to spot. However, he does notice that one of the bureaus is reporting him as late on a payment to one of his credit cards, and he knows he paid it on time.

In addition, Edouardo has read that as part of the new FACTA legislation to protect consumers from identity theft, he was supposed to have been notified of the negative mark. He is sure he was never notified.

When you first receive your Trans Union and Equifax credit reports, you will be totally lost. The information is coded in a way that is not immediately readable by the average consumer. Each credit report should arrive with a key that interprets the codes and indicators on the credit report. Sit down with the credit report and the key and study it until you understand what each number and code means.

Don’t write on your original credit report — yet. Make all of your notes on a copy of the report. You will be sending your original report with your dispute letter, so you should make at least two copies of each new report. The original goes with the dispute, one copy is for notes, and the other copy is what you will send in to the credit agency.

Gather a yellow and orange highlighter pen. Whenever you identify a negative listing, mark the listing in yellow on your scratch copy of the credit report.

Very often, it is difficult to tell if an item on the credit report is negative or positive. The following table will help you identify every negative listing on your credit reports.

By Amy Debra Feldman • Bankrate.com

Your FICO score is the dominant method lenders use to assess how deserving you are of their credit. Whether you’re looking to get a mortgage, car loan or home-equity loan, you’re going to get scored. Named after Fair Isaac Corp., the firm that developed the scoring model used by the three major credit bureaus — Equifax, Experian and Trans Union — your FICO score is calculated using a computer model that compares the information in your credit report to what’s on the credit reports of thousands of other customers.

FICO scores range from about 300 to 900. Generally, the higher the score, the lower the credit risk. It’s very difficult to say what’s a “good” or “bad” score, though, since lenders have different standards for how much risk they will accept. “A credit score that one lender considers satisfactory may be regarded as unsatisfactory by other lenders for com- parable credit instruments,” says Fair, Isaac Senior VP Cheryl St. John. Scores also fluctuate depending on credit activity. Since credit bureaus only calculate your score at the lender’s request, it will be based on the information in your file at that particular credit bureau, at that particular time only.

The Fair, Isaac model takes into account five factors when evaluating your credit worthiness (You can estimate your FICO score using the free FICO Score Estimator): Past payment history About 35 percent of your FICO score is based on this, which includes la- te payments, delinquencies and bankruptcies. The fewer the late payment- s, the better your score — though a recent late payment hurts your sco- re more than one from five years ago. Outstanding debt

About 30 percent of your FICO score, this includes what you owe on your credit cards and how much you owe on installment loans, compared with the original amounts of the loans. Someone who uses a high amount of av- ailable credit (say 75 percent) is a greater risk than someone who uses only 25 percent according to Fair, Isaac. How long you’ve had credit How long you’ve had accounts and how often you use them, this accounts for about 15 percent of your FICO score. New applications for credit According to Fair, Isaac, “research shows that opening several credit accounts in a short period does represent greater risk, especially for people who do not have long-established credit history.”

This makes up about 10 percent of your FICO score. Types of credit Making up about another 10 percent of your FICO score, this includes cr- edit cards and loans, including installment and mortgage loans. Bear in mind, however, that U.S. law forbids personal information such as ethnicity, religion, sex or marital status from being reflected in your FICO score. The main benefit of credit scoring, lenders argue, is that an automated system allows for faster decisions. Keep in mind, too, that a credit bu- reau score isn’t the only factor lenders take into account when conside- ring your loan application.

“A consumer can have a very good credit sco- re and still not be approved for a loan due to other reasons, such as insufficient income or down payment,”

Fair, Isaac’s St. John says. Other factors, such as length of time at your current employer and the value of other collateral can also influence a lender’s decision.

Step 2 covered how to identify items, both positive and negative on your credit report. Now you have this list, you should rank each item according to the amount of damage they are doing to your overall credit picture. Rank the most damaging information first, followed by the next most damaging information, followed by those items which are neutral. Do this for each credit report, as remember, they may not all have the same information on them. They may even have duplicate information. If this is the case, you will need to write to each credit agency individually for each duplicate item.

The items here are listed in order of descending importance with the first item being the “most damaging” to your credit.

Bankruptcy
Foreclosure
Repossession
Loan Default
Court Judgments
Collections
Past due payments
Late Payments
Credit Rejections
Credit Inquiries

Also, if your creditor has NOT notified you of negative information they have recently placed on your credit report, they are currently in violation of the Fair Credit Reporting Act. You can use this to pressure the original creditor to remove the listing by reminding them they are in violation of the FCRA by not notifying you.

source:http://www.creditinfocenter.com/repair/Repair.shtml#3

It’s a good idea to include all of the above information whenever you correspond with the credit bureaus. And do remember to sign your request. You should provide:

- full name
- birth date
- Social Security number
- current address
- former addresses in last 5 years
- photocopy of driving license, showing current address
- photocopy of Social Security card

If you have a letter denying you credit, employment, or insurance within the last 30 days, a copy of the letter should be provided, since this will allow to obtain a free copy.

If you ordered your credit report, within 10 to 30 days you should receive a copy of your credit report from each of the agencies.

If you are disputing items on your reports, the credit bureaus are required to respond in writing within 30 days of receipt of your letter. Also Note: It’s always a good idea to send your correspondence via registered mail so you have proof the credit bureau received your request during disputes. Registered or certified mail generally costs under $2 at the time of this writing.

What should you challenge?

Everything, and you should always shoot for a complete deletion. Don’t bother challenging the information within a collection listing, charge-off, court record, repossession, foreclosure, or settled account. As the basic nature of these listings is negative, changing the information within the listing will yield no improvement. Severely negative listings, such as these, must be disputed on the basis of complete deletion or not be disputed at all.What items are the toughest to get off your report?

You will have the toughest time getting bankruptcies and foreclosures off of your credit report as these things are so easy for the credit bureaus to verify. In the case of a bankruptcy, you most likely will have a few trade lines saying “included in Bankruptcy”. If you want to challenge your bankruptcy, you need to clear off all credit lines mentioning a BK FIRST.

James E. decided to challenge each and every one of his collections, as well as his credit card late payment. He wrote a letter that:

- listed each of his negative listings by name, collection agency and amount of the delinquency
- Under each of the list accounts, he said he was disputing the accuracy.
- He also included his Name, SSN, Address, and a copy of his driver’s license.
- James E. sent his letters via Express Mail, which gives him a receipt for the mailing, and guarantees delivery.
- Total expense for Express Mail: $36.

Here is an example letter.
http://www.creditinfocenter.com/forms/sampleletter5.shtml

It’s important to handle all of your correspondence via registered or certified mail!

I can’t tell you how many times people have written to me and told me that they can’t understand why a deal negotiated over the phone with a creditor or a credit reporting agency didn’t happen, was lost or forgotten by the person or company making the deal.

Hello! There is no way you can prove any promise made over the phone. Whether you are writing to a collection agency, any of the credit bureaus, negotiating a settlement, validating a debt or disputing a credit listing, you are not protected unless you have some record of the correspondence. You must have some written proof!

There are many ways to get proof of a promise or even the fact that your letter was received:
Send a letter certified or registered mail. Depending on the size of the letter and the distance it travels, you will spend no more than 2-3 dollars per letter. When you do this, you will be sent a receipt (a green postcard) which is your proof that your letter reached the intended destination. A great deal of the time, you will be including documents with the letter, which will require a trip to the post office.

Here’s a nifty trick, though: If you are not sending any documentation along with your letter, the US Postal service just started a new service, where you can upload a letter, they will print it out and send it for you certified mail (for an additional fee, of course.) It’s a great time saver. The URL:

http://www.usps.gov

It’s relatively easy for a recipient to blow off receiving a certified letter, if problems arise delivering it, it goes into the trash. However, you will at least have a receipt showing when you sent it.

You can send the letter UPS, Federal Express, Priority or Express Mail, which will provide a tracking number and has a better chance of being delivered.

Remember, just because you send a package by any of the above methods doesn’t mean it will get to the person you want. You will just increase the chances, and have a record that you sent it.

As soon as you have ordered your credit reports and photocopied your order letters and checks, you must create a precise organizational system to track your correspondences with the credit bureaus and your creditors.

Why is this necessary?

Unfortunately, credit items you have worked so hard to remove mysteriously reappear. If this happens, it is usually easy to have the items deleted permanently if you show your complete records on the first removal.

Why take a chance?

As you proceed through these steps, keep copies and records of all correspondence you send and receive. Copies of all correspondence are a must, as well as notes on all telephone conversations! Also, if you should encounter any special difficulty and would like help in repairing your credit, you will need these records to proceed.

Every time you have a telephone conversation with a creditor, you must document the conversation by recording the name of the person to whom you spoke, his or her position, the date and time of the conversation, what was said in the conversation, and what was agreed upon.

James E. used his Palm Pilot to record when he sent his letters, and put his mail receipts and copies of his letters in a safe place.

Before you take out a home loan or make any major purchase, you should be aware that any prospective lender will want to take a look at your credit report. Your credit report is a record of all of your past financial dealings, and any loans, credit cards, judgements, bankruptcies or other major financial transactions are listed there. Along with your credit report will come your credit score, which is a three digit number between 300 and 850 that represents a distillation of all of the above. That score represents your entire financial life, and your ability to obtain financing for any major purchase depends on having a good one. What if you don’t have a good record? Should you go to one of those companies that promise to repair your credit? What you should do is repair it yourself.

The idea of credit repair is a myth. There is no magic solution to fixing problem credit, and any company that promises to do so is only interested in your cash. Your credit report and score are maintained by three separate credit bureaus that keep pretty accurate accounts of all financial dealings done under your Social Security number. There is no way to quickly “fix” a faulty credit report. You can, however, fix it yourself and fix it for free. It just takes time.

The way to repair your credit record is to start paying your bills on time and paying off your debt. More than one third of your credit score is determined by your past ability to pay bills and to pay them on time. Start doing so now. It may take a year or two, but steadily paying your bills without making any late payments goes a long way towards repairing a credit score.

Another third of your score is determined by your ratio of debt to available credit. If your credit cards are maxed out, you need to pay off or pay down your balances. It’s tough to obtain a loan when you are already in debt to the gills.

Stop using your credit cards, if possible. Don’t cancel them; just stop using them, particularly if you have a balance to pay off. You want to reduce your debt. Pay cash when you can. And check your credit report for problems. You can obtain a copy for free from the free credit report Website.

Repairing your credit record takes time and discipline. There is no quick solution other than paying your bills, paying them on time, and waiting for the damage to heal. After that, you should be in good shape to obtain your home or car of your dreams.

About the Author:
©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including http://www.end-your-debt.com/, a site devoted to debt consolidation and credit counseling, and http://www.homeequityhelp.net, a site devoted to information regarding home equity lending.

Author: Winn Griffin

Misconceptions about credit scores and credit repair abound. Some consumers who use credit cards don’t believe they have a credit score or that their credit scores don’t matter so they would never think about credit repair. However, without a good credit score or without credit repair when you score is blown to bits, a consumer may hurt themselves in day-to-day living.

If you have a bank account and bills to pay then you have a credit score and you may be a candidate for credit repair. Credit scores were developed by FICO (FICO is a registered trademark of Fair Isaac Corporation) as a measure of credit risk and are the most used credit scores in the world. A FICO credit score is a three-digit number that gives lenders a clue about how likely you are to repay your bills. If your FICO credit score is bad. You may be a candidate for credit repair.

Your credit score is accessible to anyone with a legitimate business need. Here are two examples. An apartment manager my use your score to decide if you can be trusted to pay your rent on time. Employers may use your credit score to decide if you can be trusted in a high-responsibility job that requires you to handle money. Not knowing about credit scores leaves one vulnerable and you possible need for credit repair.

As with most potential problems there is often a lot of misinformation circulated about the solution to the problem. This is surely true about credit scores and credit repair. When trying to gain accurate information, consumers often come away with the idea that one can boost their credit score by paying more money to a company or hiring a “credit repair” expert.

Here are some areas you need to consider doing. You may need to define a credit score, a credit report, and other key financial terms to help in credit repair. You may need to develop a personalized credit repair plan that addresses your unique financial situation. You may need to find the resources and people who can help you repair your credit score. You may need to repair your credit effectively using the very techniques used by credit repair experts.

Remember, your credit repair does not happen in a vacuum. You may need some outside help. Here is a resource that might be helpful for you.

Author: Joel Dresse

Are you wondering about what you have to do with credit repair? Or maybe you’re just curious whether your credit needs fixing or not? Last time you checked, you didn’t but who knows what could happen in five years? Maybe, you already know that you do need credit repair but you’re unsure whether to do it yourself or pay for the services of a credit repair company? Or perhaps, you’re about to undergo a credit check to qualify for a career promotion and you’re hoping to make it absolutely sure that you’ll pass?

If so, here’s everything you have to know about credit repair.

Each step that you take in credit repair must be evaluated carefully. If you’re going to do it yourself, prepare beforehand by reading credit repair books, searching the Internet for advice from experts, purchasing a do-it-yourself credit repair kit and so on.

As you read, you’ll see that the first thing everyone shall advise you to do is to procure a copy of your credit report. If you were under the impression that only finance companies, banks and merchants can ask for a credit report, you’re wrong. As long as you’re asking for a credit report done on you, then certainly you can ask for a copy. This would cost you a bit so better prepare to spend. We advise you to take at least copies of your credit reports from the following credit bureaus: TransUnion, Experian and Equifax because most financial institutions usually base their decisions on either of the credit reports provided by the aforementioned credit bureaus.

Got your copy now? Okay, roll it out and study each and every item in the list. Don’t overlook anything, even your personal records because you’re certainly not the only Lisa Smith in Washington, D.C. and who knows if the other Ms. Smith have unimaginable debts that were somehow mistakenly listed under your record? It pays to be cautious, okay. Now, with a do-it-yourself credit repair kit, they’re sure to advise you about the common things to watch out for. You’ll be surprised to know that approximately thirty percent of credit reports contain items. So who knows if you’re one of that thirty percent?

Lastly, if you find out anything to dispute, it’s time to fill up the form for disputes and then approaching the credit bureau responsible for the erroneous credit report. Take our advice and use time to your disadvantage. File for disputes during the busiest times of the year like the ones following Thanksgiving and Christmas..

More informations are available at http://www.debt-credit-00.info
Magalie Noel Dresse is the Webmaster of http://www.business-00.info, an informative site on small business, and of http://www.debt-credit-00.info, an informative site on debt and credit questions.

Credit history or credit report is a record of an individual’s or company’s past borrowing and repaying, including information about late payments and bankruptcy. The term “credit reputation” can either be used synonymous to credit history or to credit score.

Credit history information is used for determining an individual’s or entity’s means and willingness to repay an indebtedness. So according to credit history an individual or entity can have a god or a bad reputation. This helps determine whether to extend credit, and on what terms.

Credit repair is a general term often applied to the controversial practice of improving or rehabilitating one’s financial reputation (creditworthiness) among creditors.

Accurate negative information generally can be reported for seven years, but there are exceptions:

- Bankruptcy information can be reported for 10 years;
- Information reported because of an application for a job with a salary of more than $20,000 has no time limitation;
- Information reported because of an application for more than $50,000 worth of credit or life insurance has no time limitation;
- Information concerning a lawsuit or a judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer; and
- Default information concerning U.S. Government insured or guaranteed student loans can be reported for seven years after certain guarantor actions.
- Tax liens stay on 7 years from the date PAID.

by Jeff Schumann

Bad credit is a term used to describe a poor credit rating. Common practices that can damage a credit rating include making late payments, skipping payments, exceeding card limits or declaring bankruptcy. Bad Credit can result in being denied credit.

Bad credit can result in a negative rating from the credit reporting agencies. Many factors can contribute to someone getting a “bad credit” rating, among these are non-payment of an account or late payments over an extended length of time. Whether non-payment of an account is willful or due to financial hardship, the result can be the same, a negative rating which will result in a low credit score. However, lenders are more willing to work with individuals if the person contacts the lender to let them know they are having problems meeting their commitment to pay.

A credit score is defined as a statistical method of assessing an applicant’s credit worthiness. An applicant’s credit card history; amount of outstanding debt; the type of credit used; negative information such as bankruptcies or late payments; collection accounts and judgments; too little credit history, and too many credit lines with the maximum amount borrowed are all included in credit-scoring models to determine the credit score.

Raising your credit score is possible. It’s a well known fact that lenders will give people with higher credit scores lower interest rates on mortgages, car loans and credit cards. If your credit score falls under 620 just getting loans and credit cards with reasonable terms is difficult.

Here are five things that you can use to raise credit score.

1. Correct obvious mistakes.

Your credit score is what shows up in your credit report. Review your reports from all three credit bureaus for accuracy once a year as well as several months before applying for a loan. Changing a mistake on your report can take 30 days to three months, or more. Get Your credit report from the three major bureaus: Experian, Trans Union and Equifax.

2. Pay Your Bills On Time

Your payment history makes up 35% of your total credit score. Your recent payment history will carry much more weight than what happened five years ago.

Missing just one payment on anything can knock 50 to 100 points off of your credit score.

Paying your bills on time is the best way to get started rebuilding your credit rating and raising your credit score.

3. Reduce your credit card balances.

A heavily weighted factor in your FICO score is how much money you owe on your credit cards relative to your total credit limit. Generally, it’s good to keep your balances at or below 25 percent of your credit card limit, said Jeanne Kelly, founder of The Kelly Group in Brookfield, Conn., which helps clients improve their credit scores.

4. Don’t Close Old Accounts

In the past people were told to close old accounts they weren’t using. But with today’s current scoring methods that could actually hurt your credit score.

Closing old or paid off credit accounts lowers the total credit available to you and makes any balances you have appear larger in credit score calculations. Closing your oldest accounts can actually shorten the length of your credit history and to a lender it makes you less credit worthy.

If you are trying to minimize identity theft and it’s worth the peace of mind for you to close your old or paid off accounts, the good news is it will only lower you score a minimal amount. But just by keeping those old accounts open you can raise credit score for you.

5. Avoid Bankruptcy

Bankruptcy is the single worst thing you can do to your credit score. Bankruptcy will lower your credit score by 200 points or more and is very difficult to come back from.

Once your credit score falls below 620, any loan you get will be far more expensive. A bankruptcy on your credit record is reported for up to 10 years.

The reality of a bankruptcy is it will limit you to high-interest lenders that will squeeze out high interest rate payments from you for years.

It is better to get credit counseling to help you with your bills and avoid bankruptcy at all costs. By getting credit counseling instead of declaring bankruptcy you can raise credit score over a much shorter period of time.

For hundreds of articles on this and other subjects, go to: http://blueascend.com/credit-repair/

About the Author
The author lives and works in UK

As part of the loan application process, virtually all lenders will want tosee a copy of your credit report. The report will list all your long-termdebts (credit cards, mortgage payments, automobile and student loans, etc),as well as your payment history. If you don’t have a copy of your creditreport, most lenders will generally require you to pay for a copy when theyprocess your loan application.However, most real estate experts agree that it is a good idea to obtain acopy of your credit report several months before you apply for a loan.

This is so you have a chance to resolve any problems with your credit before yourbank sees it. U.S. Federal law ensures that you have access to your creditreport, which may be obtained from your local credit bureau or any ofseveral national firms that specialize in credit reports.

Late payments
For most people, problems with their credit report are likely related tolate payments on a debt.
If you were late one month in paying off yourcredit card, but otherwise have a good payment history, chances are mostlenders won’t be too concerned. But if you have a history of late paymentsyou’ll need to document the reasons why. A slow payment history won’tnecessarily get you turned down for a loan, but you may have to pay a higherrate of interest or otherwise prove to the lender that you can repay yourloan in a timely fashion.

Errors on your credit report
Many people are surprised to learn that credit reports can often containserrors or inaccurate information. If this is the case with your creditreport, you’ll need to contact the reporting agency or creditor to have theproblem resolved. This can sometimes be a slow process, so make sure to giveyourself time to clear up the mistake.

Bankruptcies and foreclosures
There’s no getting around it, a bankruptcy on your credit report is not agood thing. But that doesn’t mean you still can’t obtain a loan. Even thougha bankruptcy may stay on your credit report for seven to ten years, lenderswill often consider the circumstances surrounding a bankruptcy (familyillness, injury, etc.). Moreover, if you have reestablished good creditsince the bankruptcy, a lender will be more inclined to approve your application.

Still having problems? There are free credit counseling services that may help you. Just because you have a poor credit report doesn’t mean you won’t be able to get credit. Creditors set their own credit-granting standards and not all of them look at your credit history the same way. Some may look only at recent years to evaluate you for credit and may grant credit if your bill-paying history has improved.

It may be worthwhile to contact creditors informally to discuss their credit standards. If you can’t resolve your credit problems yourself or you need additional help, you may want to contact a credit counseling service. There are non-profit organizations in every state that counsel consumers in debt. Counselors try to arrange repayment plans that are acceptable to you and your creditors. They also can help you set up a realistic budget. These counseling services are offered at little or no cost to consumers.

You can find the office nearest you by checking the White Pages of your telephone directory. In addition, non-profit counseling programs are sometimes operated by universities, military bases, credit unions, and housing authorities.

They’re also likely to charge little or nothing for their services. You can also check with your local bank or consumer protection office to see if it has a list of reputable, low-cost financial counseling services available.

Here are some more suggestions: Neighborhood Housing Services offers financial counseling at no fee. It does not offer debt consolidation loans, and has offices in every city in the country. Refer to their website at: http://www.nw.org/. http://www.hud.gov/ lists approved counseling agencies that help homeowners in financial trouble