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Try this google search–quick fix credit repair (599,000 results) or fast credit repair ( 17,000,000 results)…you get the idea.  People want to fix their credit and they want to do it fast, now, today.  That’s why you are here…right?  You messed it up fast so you can fix it fast….just like my diet.  Sadly no you can’t lose 50 pounds today or fix you credit today.  But you can fix your credit and you can start today.

Simple measures to improve credit scores exist …And when these simple measures are performed methodically and consistently, (with time) they’ll reap you positive results. And it really is not that hard to do.

Be Aware Of What Your Credit Score Is

  • Check your Credit Report right away … and then check it regularly in the future.  Free websites such as Credit Karma, allow consumers to continually monitor their credit scores.
  1. Check for accuracy – (Personal info, Social Security Numbers, Date of Birth, Full EXACT Name, Address)
  2. Check for rating
  3. Check to make sure ALL your credit accounts are being reported
  4. Check to see if late/missed payments are showing? If so, what is the true status of these accounts?

Understand What Is Used To Determine Your Credit Score

  • Payment History – 35%
  • New Accounts/Credit Requests – 10%
  • Length of Credit History – 15%
  • Total Debt Percentage – 30%
  • Credit Mix – 10%

The highest credit score that can be obtained is an 850.  Consumers with credit scores under 600 are often considered risky borrowers while borrowers with credit scores of 720 or greater are considered very solid borrowers. Lets make you solid!!

Get Current On Any Delinquent Accounts

Pay your bills!  Pay them on time, as they are due, each and every time

Catching up on late payments can increase a credit score relatively quickly once a credit report reflects the payment.  Accounts with missing payments can destroy a your credit score so it’s important to stay current on all accounts!

Dispute Any Errors On Your Credit Report

If there are incorrect accounts on your credit report, it’s extremely important they’re removed.  Contact the creditor and get it fixed. Do not ignore it!

Pay Off or Lower Balances On Accounts With Small Balances

This changes the income to debt ratios.  Your income to debt ratio is a factor that can have a large impact on mortgage pre-approvals.

Pay Off or Lower Balances On Accounts With High Interest Rates

Paying off or lowering the balances on these high interest accounts can potentially mean extra money each month to use towards a down payment on a home.

Pay Bills On Time

Why do I even have to say this….ALL your bills should be paid on time.   This will improve your credit report.  Pay fines, parking tickets, etc.  Even seemingly small unpaid debts can be sent to a collection agency and end up wreaking havoc on your credit/Credit Scores

Work On Your Credit Utilization Percentages

30% or lower of available credit is recommended – 10% is even better. Generally speaking, consumers with credit utilization percentages of 10% or less are consider to have excellent ratios.

Don’t Close Old Accounts

There is a temptation to pay off and close accounts. DON’T!   By closing old accounts, you could be potentially hurting your credit history length. You are also reducing the available credit you have. That can hurt your debt percentage (available credit/used credit).

Don’t Keep Opening New Accounts

One of the reasons opening new accounts can hurt a credit score is because when a new account is opened, generally, a credit inquiry is pulled.  Too many credit inquiries can negatively impact a credit score.

For Those With No Credit Yet

If you are young and have no credit….or believe in cash only…Having no-or-little credit history reporting to the Credit Bureaus reaps low Credit Scores or No scores at all.  So you need to build your credit.

A secured credit line is one which a borrower uses an asset as collateral to secure the account.

  • Mortgage lenders will often suggest secured credit cards to borrowers who don’t have enough established credit lines.  Once a buyer obtains a secured credit card, lenders will suggest making small purchases each month and paying off the balance each month.
  • Open up a credit card (known as revolving debt) with a modest borrowing limit. Major retailers and gasoline companies are two (2) good examples of this type of debt.Use the newly-established credit card by charging purchases within your budget constraints.  Pay the balance on time and in full each month  (I recommend that first-time credit users open only one or two credit lines, to begin with. Take small steps. Learn to handle your credit wisely. Crawl before you walk. )