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4 Credit Repair Secrets

By
Real Estate Agent with Gold Shield Realty Group

The credit industry has really changed in the recent past but there are still a few basics which still apply to keep your good credit in good standing or to help booster your not so good credit.

 

First - Pay every bill on time.

Yeah this may be easier said than done but, there are ways to help those who have the means but may not manage correctly and thereby pay extra fees, unnecessarily.  Sign up for you banks on line bill pay.  Some banks like Bank of America offer money bonuses to sample their services.

Second - Do not cancel any credit cards. - 1/3 of your credit score is based on how much of the credit available to you you're actually using.

Third - Ask your credit card company about increasing your limit. - By increasing your limit you lower your debt to income ratio.  (Don't increase your balance, just your limit)

Fourth - Check your credit reports - you are entitled by law to one free copy of your credit report each year from the credit bureaus. www.annualcreditreport.com or call 1-877-322-8228

 

Posted by

Veronica Lawrence

Your Trusted Realtor/Notary Loan Document Signer

DRE# 01841099

(951)704-3092

www.veronicalawrence.com

 

Show All Comments Sort:
Elite Home Sales Team
Elite Home Sales Team OC - Corona del Mar, CA
A Tenacious and Skilled Real Estate Team

Very interesting and I can see that these things will increase the credit scores.

Oct 24, 2009 05:20 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Veronica, What we sometimes see is that people have terrible credit, which is not surprising in this economy, and even if they managed to get out of the mess, annd have a decent job, and money for downpayment, they are in trouble with the mortgage people

Oct 24, 2009 05:22 PM
Brian Kuhns
Coldwell Banker Roth Wehrly Graber - Fort Wayne, IN
Fort Wayne Real Estate by Brian Kuhns

I've also heard of times when "available" credit has hurt peoples scores though....personally I hate the current system that seems to be designed around some NASA equation

Oct 24, 2009 05:25 PM
Diane Rice
Rice Prprty Mgmnt & Rlty, LLC, South Holland, IL - Lansing, IL
SFR, SRES, CNC

Hi Veronica!  These really are true secrets that the average person has no knowledge of.  Those seeking better scores usually think the bills need to be paid off and the accounts closed!   

Oct 24, 2009 06:10 PM
Dan Tabit
Keller Williams Bellevue - Sammamish, WA

Hi Veronica, If a credit card has an open balance is 1/3 or less of the limit, the score will go up. Thanks for the post.

Oct 24, 2009 06:14 PM
Veronica Lawrence
Gold Shield Realty Group - Murrieta, CA
Gold Shield "WE Defend your Interests"

Yes Dan, as long as a person maintains 1/3 of their open credit line on each card this helps their credit score incresase.

Oct 26, 2009 06:00 AM
Veronica Lawrence
Gold Shield Realty Group - Murrieta, CA
Gold Shield "WE Defend your Interests"

Diane I have experienced the same thing, in fact I am working with a prospect which I have now turned into a client just by letting her know that information.  Originally she wanted to do just that pay off what she owed and close the account then apply for her home loan. 

Oct 26, 2009 06:03 AM
Veronica Lawrence
Gold Shield Realty Group - Murrieta, CA
Gold Shield "WE Defend your Interests"

Brian, there are times when available credit does hurt someones score but as a general rule if they keep to the ratios 1/3 of available credit they should be fine.  But it is always best to map out a plan... what are they applying for...what is their history like.

Oct 26, 2009 06:06 AM