Home » Computers

4 Simple Steps to Excellent Credit

Jul 30, 2008
We live in a credit nation. The mistakes in handling credit are well documented but even so no one would dispute the importance of having good credit. Your credit score, when handled properly, can give you many advantages to creating wealth through leverage. Here are some credit basics to improving your scores.

Step 1: Go directly to the source to see what exactly your credit is. You will want to pull all three credit reports from www.equifax.com, www.transunion.com, and www.experian.com. These are the bureaus that your creditors report to and you will need to investigate all three to determine what incorrect and derogatory items you have.

Make sure that you get both your credit report and score. Do not waste your time with a so called free credit report service as those are usually a waste of you time. They are usually trying to sell you into some monthly credit monitoring plan that is expensive and unnecessary.

Upon receiving your three reports go through each one painstakingly. Though much of the information is redundant you will find that each one is reflecting a different score for you. Each bureau reports based on a different matrix and many creditors do not report to all three bureaus. Take note of every late or public record on each report.

Step 2:Dispute the issues. Make sure that when you dispute the incorrect and derogatory items that you do it by hand written letters in your own words. Do not use the standard bureau forms that are provided. The employees at the bureaus are real people trained to be on the look out for credit repair companies and false disputes. You will get a better response by taking the time to personalize things.

Go after all the incorrect information on your credit report. You can see a quick jump in your credit score by simply correcting false information. If, on the other hand, there are items on you rreport that are yours then you are better served by contacting the creditors directly. Many creditors will remove derogatory information at the request of a current client.

Step 3: Wait or Pay. Many people are aware that after 7 years most derogatory credit comes off. What many people do not know is that investigating an old item can reactivate the derogatory and cause an immediate drop in credit score. In some cases, the closck may even be "reset" for another 7 years. Be cautious in investigating old items. Make sure that you have proof that the items are either paid or incorrect.

One trick, so to speak, is to be sure to keep your available balances at no more that 50% and better yet 30%. You can see a quick improvement of your score if you are able to transfer a balance onto a card that is at zero and have two cards at 30% of available rather than one at zero and another maxed out.

Step 4: Be cautious in establishing new credit and especially don't close old accounts. It's important to know that one of the major contributing factors in your credit score is the length of time that credit has been established. Older accounts, even ones you've not used, will positively effect your score. Newer accounts will skew the average and lower your score.

By applying these basic steps you can fix or maintain your credit. Though it is not an easy task it is worth the effort. There are some cases where using a reputable credit repair agency is helpful but first apply these simple steps that I've outlined here and you'll be on your way to great credit and financial security.
About the Author
If you are in the market to Buy a Home then check out Rob Kosbergs' Complete FREE Guide on Buying your Perfect Home with a Zero Down Mortgage or for up to date Mortgage info visit my Mortgage Blog
Rating:
Please Rate:
(Average: Not rated)
Views: 188
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Accounting
    • Credit
    • Currency Trading
    • Debt Consolidation
    • Insurance
    • Investing
    • Leasing
    • Loans
    • Mortgage
    • Mutual Funds
    • Personal Finance
    • Stock Market
    • Structured Settlements
    • Taxes
    • Wealth Building
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources