How to Improve Credit Scores

Mortgage and Lending with The Mortgage Market of Delaware

How To Improve Credit Scores

Suggestions for help in improving credit scores:

Collection accounts-

Accounts that have gone into collection within the last couple of months; pay them off and obtain proof of payment.

Accounts that have gone into collection within the last 4-12 months; just leave them alone and let them age past the 12 months.

Accounts that went into collection month than 12 months ago; just leave them alone. (If you pay them now- the credit rating agency counts it as a more recent collection account)

One of my clients paid a recently placed collection account. She sent in the proof of payment. The item came completely off the credit report. Usually it will still be listed on the report but show as paid.   

Judgments- These need to be in a “released status” or “satisfied”. If you have status unknown or any other open status, pay them off and get an “Order of Satisfaction”.

Call Credco’s consumer dispute line (the reporting agency for all three credit bureaus)  at 800-637-2422 and ask  for their fax number to be able to send in paperwork proving payments have been made. Make sure you include your full name and social security number on the cover sheet so they can match things up. This is a free service and takes between 30-45 days for things to be corrected.

Mistakes- Sometimes items are on your credit history that belong to someone else. Or your account was reported in error. Get whatever proof you can and send it in to the consumer dispute fax number. 

To build new good credit history-

Go to a local bank or credit union and start two “secured “ accounts. You deposit $300 into a savings account for each for the bank to hold as collateral for your new accounts. Start a $300 limit credit card and a $300 installment loan. Charge $25 each month on the credit card and pay it off each month. Get the installment loan as a 12 month term and pay the payments each month, on time.

These two accounts will help build good credit history to offset any derogatory accounts you may have had in the past.

It takes a little time and effort, but the pay off is better credit scores. Higher credit scores equal lower interest rates charged to you on future loans which can save thousands of dollars over the years.       

Provided by:

JoAnn Moore, Licensed Mortgage Professional, NMLS #165477

The Mortgage Market of Delaware P O Box 204 Georgetown, DE 19947


Office 302.855.1306, Cell 302.236.1229, Fax 302.855.1308,

Posted by

JoAnn Moore

Comments (12)

Liz Wallace
Century 21 Sherlock Homes - Rockville Centre, NY
Broker C21 Sherlock Homes, Rockville Centre, LI, N

This is a suggest from me.  This is an important post.

Jan 16, 2014 03:31 AM
JoAnn Moore
The Mortgage Market of Delaware - Georgetown, DE
Home Loans in Delaware

Thank you Liz. I appreciate that. 

Jan 16, 2014 03:45 AM
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Good information for buyers, sellers, agents and the general public.  Thanks, JoAnn.  It is good to see you again.

Suggested and re-blog.

Jan 17, 2014 10:23 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

JoAnn - "suggest" from me, too. Excellent blog post. Very important and useful information.

Thank you

Came here from the reblog.

Jan 17, 2014 10:44 AM
Suzanne Otto
Six Twenty Designs - Lansdale, PA
Your Montgomery County PA home stager

Hi JoAnn! Came over from Mary's reblog. This is excellent information for consumers to know.

Jan 18, 2014 11:25 PM
JoAnn Moore
The Mortgage Market of Delaware - Georgetown, DE
Home Loans in Delaware

Hi Mary, Jon and Suzanne, Thank you so much for the kind words. I will be posting some additional information about how to improve credit scores later this week. It's sad that the whole credit scoring method is such a mystery. So much of our financial lives are tied to our scores and yet there isn't any real information about how it is actually calculated.  

Jan 19, 2014 01:31 AM
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Well done JoAnn. There is so much bad information around on this topic, but you information is spot on.

Make it a great week!

Jan 20, 2014 03:21 AM
Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional
Charles Rutenberg Realty - Clearwater, FL
Palm Harbor, Dunedin, Clearwater, Safety Harbor

Great information JoAnn. People need to repair their credit BEFORE beginning a home search.

Feb 16, 2014 06:23 AM
Delaware Junk Removal Residential And Commercial Hauling Clean Outs
Delaware Junk Removal 302-530-9186 - Wilmington, DE
Whole House Clean Outs, Basements, Garages, Attics

Good stuff JoAnn, it just takes time and its really not that hard if you plan ahead is it?

Mar 31, 2014 08:44 AM
JoAnn Moore
The Mortgage Market of Delaware - Georgetown, DE
Home Loans in Delaware

Thank you for your message. Yes, it just a bit of time, planning and follow through. 

Apr 01, 2014 02:11 AM
Marco Giancola
Beachfront Realty - Miami Beach, FL
Realtor (305)608-1922, Miami Beach Florida

Hi JoAnn-all good points. I take a very proactive stance on keeping my scores high and have learned a lot of tricks to pass on to my customers,friends and family too.

Oct 01, 2014 08:01 PM
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

Well, it is the same as a diet: want to be pretty, slim and healthy~ pay attention to what you eat and how much. If someone already made financial mistakes, they just need to be careful with the financial decisions they make....

Oct 23, 2014 05:37 PM

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