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How to Raise Your Credit Score 100 Points

Knowing how to raise your credit score doesn’t involve asking experts for help. People with debt problems can increase their credit rating without paying money for credit repair companies, because they do nothing that you can’t do yourself. In fact, much of what they would do can be done better by you. All you have to do is agree to certain parameters you won’t deviate from. Use these few suggestions for personal credit repair and you’ll be self-sufficient in no time. In two years, you can see your debt score go up as many as 100 points.

Rebuilding Your Credit Score

When you read what I’m going to tell you, keep in mind that personal debt repair is an end unto itself. No matter where your credit score ends up, this advice is going to make you happier, to make your household budget healthier, and to help you build a better life.

Pay All Bills for 2 Years

Pay all your bills on time for at least two years. Two years is when old information begins to fall off your credit report, so if you don’t add new bad information to your report in a two year span, your credit score will start to come up.

Don’t Pay the Minimum Monthly Payment – Pay Off Your Debts

Pay any bills you can “in full” if that’s remotely possible. If that isn’t feasible, pay more than the minimum payment each month. If you only pay the minimum amount due, you end up on a debt treadmill, where all you do is pay the interest. If all you do is pay the interest, you’ll never pay down your debts.

Dispute Inaccurate Credit Report Information

If you find any inaccurate information or credit report data you don’t think is correct, dispute that information. Keep records of your financial transactions (receipts, checks) which might help when disputing claims. Credit reporting companies are full of people who make mistakes all the time. Don’t be intimidated by the fact these are accountants and money experts. Be respectful, but know they handle a lot of cases and they make mistakes like anyone else.

Write to Your Creditors with an Explanation

When you are late paying a bill or the bill isn’t paid, write an explanatory note about why a bill is overdue or not paid at all. Explain the circumstances in 100 words or less (print legibly) so they can add this to your credit report.

Remember, this is 100 words of less. It takes no time to write a note and it takes 40 cents to mail that letter. You do it anonymously and never have to face an embarrassing situation. Send this information to a credit reporting company and make it short enough to stick in your file and it will help your debt crisis.

Keep the Lines of Communication Open

When you’re having problems paying bills, contact your creditors and let them know what the situation is. The single biggest mistake people make is burying their head in the sand and letting bad credit info get back to the credit reporting companies. Try to limit the damage instead of ignoring and procrastinating. This isn’t the first time someone has gone into bad debit, so explain why you have no credit, set out a plan for getting out of your debt crunch, and stick to the plan. That’s my next bit of advice.

Stop Charging up Credit Cards

If you’re in a debt hole, don’t charge anything until you have your budget situation back under control. If you go on running up debts, the situation only gets worse and worse. When you have a rule against charging new debt of any kind, you don’t have to worry about temptation. Just understand this is a hard-and-fast, categorical rule against charging your credit cards for anything. No means no.

Be Patient and Stick with Debt Repair Strategies

Let time wash away the bad credit history. They say time heals all wounds. That may or may not be the case when it comes to human anatomy, but it’s absolutely true when we’re talking about the anatomy of debt. Let good payment information replace bad credit information and your debt score rises by dozens of points–perhaps even by three digits.

Beware the Debt Repair Pitfalls

When you’re having trouble with debt, it’s natural to seek quick credit repair fixes. You’ll see people tell you they can raise your credit score by 100 points in “30 days“, “45 days“, or the always vague “fast“. The fact is, most good debt solutions take time to implement. You can raise your FICO score by one-hundred points, but this is usually going to require a couple of years to let the bad credit information wash out of the report.

Too often, people opt for the quick solution. Too often, this only leads to greater debt troubles. I urge extreme caution when you see certain credit repair traps that are (seemingly) everywhere online. Watch out and be cautious about the following ploys.

  • 900 Phone Numbers for Credit Repair Services
  • Credit Repair Clinics
  • Clean Up Your Credit Kits
  • Credit Repair Companies That Want “Money Up Front”
  • Debt Repair or Consolidation Companies
  • Debt Settlement Firms
  • Promises that cannot be kept

Remember, anything a credit repaid company says it can do, you can do on your own. A debt repair business knows no tactics you can’t learn yourself through the Internet. It’s a matter of “ending the spending” and starting to pay down the debt you have accumulated. Beware the con men and scammers, because plenty of scam artists just want the little money you do have left. These are the worst kinds of people, because they take advantage of people who are in distress. Taking advantage of a person’s debt situation is like seeing someone with a flat tire on the side of a desert road and asking for cold cash to take them to the next town.

You and your spouse can repair your credit situation yourselves. All it takes is discipline and a bit of a plan. The plan is simple. Most of a good debt repair strategy involves not doing things. When you combine that with a little proactive damage control, you’ll end up repairing your debt damage and having good credit in no time…well, in about two years.

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