Learn How To Fix Your Own Credit Score With The Right Knowledge.
Many professionals from real estate agents to automobile salesmen have clients who come to them with poor credit trying to purchase a house or a car. Often times these professionals have to send their clients away or refer them to some credit repair agency who will often charge them for services that the client themselves can perform themselves if only they had the right knowledge. I am going to attempt to provide that knowledge on how to fix your own credit score and hopefully help you bring your credit rating to a 750. Being able to correct mistakes or inaccuracies on a credit report can be easy even if you do it yourself. The following information is on how to fix your own credit score by removing negative items from your credit report. Negative items on your credit report can ruin your chances or stop you from buying your new car, the house you want, or getting a new credit card.
Learn How To Fix Your Own Credit Score Without Being An Attorney.
Many people are under the misconception that you have to be an attorney to know how to fix your own credit score but this is untrue. The truth those attorneys who have become apart of the credit repair industry have simply learned how to put the Fair Credit Reporting Act and the Fair Debt Collection Practices Act to good use in order to offer credit repair services for a fee.
- The Fair Credit Reporting Act is U.S. Federal Government legislation enacted to promote the accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting agencies. It was intended to protect consumers from the willful and/or negligent inclusion of inaccurate information in their credit reports. This is a copy of the Fair Credit Reporting Act last updated May 2016.
- The Federal Trade Commission (FTC), the nation’s consumer protection agency, enforces the Fair Debt Collection Practices Act (FDCPA), which prohibits debt collectors from using abusive, unfair, or deceptive practices to collect from you. This is a copy of the enforcement rules.
If you want to learn how to fix your own credit you must first learn how credit scores are calculated:
While your credit reports are simply a track record of your payment history—no judgments—your credit score is more akin to a school GPA. It’s a cumulative number that measures your success relative to others, in this case grading you as a credit-worthy individual. Improving your credit score starts off with knowing the different components that make up your credit score.
The most widely used score, from a company called FICO, ranges from 300 to 850. The higher the number, the better. The credit score is based on 5 different components:
1. Payment History
2. Credit Utilization
3. Length of Credit History
4. New Credit
5. Credit Mix
When you get a Income Shifting Membership you will learn how to the weight and importance of each of these components and how to work with them practically to raise your credit score.
Ever wonder how a lender decides whether to grant you credit? For years, creditors have been using credit scoring systems to determine if you’d be a good risk for credit cards, auto loans, and mortgages. These days, other types of businesses — including auto and homeowners insurance companies and phone companies — are using credit scores to decide whether to issue you a policy or provide you with a service and on what terms. A higher credit score is taken to mean you are less of a risk, which, in turn, means you are more likely to get credit or insurance — or pay less for it. The Federal Trade Commission (FTC), the nation’s consumer protection agency, wants you to know how credit scoring works.
Credit scoring is a system creditors use to help determine whether to give you credit. It also may be used to help decide the terms you are offered or the rate you will pay for the loan. Information about you and your credit experiences, like your bill-paying history, the number and type of accounts you have, whether you pay your bills by the date they’re due, collection actions, outstanding debt, and the age of your accounts, is collected from your credit report. Using a statistical program, creditors compare this information to the loan repayment history of consumers with similar profiles. For example, a credit scoring system awards points for each factor that helps predict who is most likely to repay a debt. A total number of points — a credit score — helps predict how creditworthy you are: how likely it is that you will repay a loan and make the payments when they’re due.
Some insurance companies also use credit report information, along with other factors, to help predict your likelihood of filing an insurance claim and the amount of the claim. They may consider this information when they decide whether to grant you insurance and the amount of the premium they charge. The credit scores insurance companies use sometimes are called “insurance scores” or “credit based insurance scores.”
Learn How To Fix Your Own Credit Score For Only $35 Dollars Per Month.
Your credit report is a key part of many credit scoring systems. That’s why it is critical to make sure your credit report is accurate. Federal law gives you the right to get a free copy of your credit reports from each of the three national credit reporting companies once every 12 months. The Fair Credit Reporting Act (FCRA) also gives you the right to get your credit score from the national credit reporting companies. They are allowed to charge a reasonable fee for the score. When you buy your score, you often get information on how you can improve it.
To order your free annual credit report from one or all of the national credit reporting companies, and to purchase your credit score, visit www.annualcreditreport.com, call toll-free 877-322-8228, or complete the Annual Credit Report Request Form and mail it to:
Annual Credit Report Request Service
P. O. Box 105281
Atlanta, GA 30348-5281
For more information, see Free Credit Reports at consumer.ftc.gov
What Can You Do To Improve Your Credit Score?
Credit scoring systems are complex and vary among creditors or insurance companies and for different types of credit or insurance. If one factor changes, your score may change — but improvement generally depends on how that factor relates to others the system considers. Only the business using the system knows what might improve your score under the particular model they use to evaluate your application. Nevertheless, scoring models usually consider the following types of information in your credit report to help compute your credit score:
- Have you paid your bills on time? You can count on payment history to be a significant factor. If your credit report indicates that you have paid bills late, had an account referred to collections, or declared bankruptcy, it is likely to affect your score negatively.
- Are you maxed out? Many scoring systems evaluate the amount of debt you have compared to your credit limits. If the amount you owe is close to your credit limit, it’s likely to have a negative effect on your score.
- How long have you had credit? Generally, scoring systems consider your credit track record. An insufficient credit history may affect your score negatively, but factors like timely payments and low balances can offset that.
- Have you applied for new credit lately? Many scoring systems consider whether you have applied for credit recently by looking at “inquiries” on your credit report. If you have applied for too many new accounts recently, it could have a negative effect on your score. Every inquiry isn’t counted: for example, inquiries by creditors who are monitoring your account or looking at credit reports to make “prescreened” credit offers are not considered liabilities.
- How many credit accounts do you have and what kinds of accounts are they? Although it is generally considered a plus to have established credit accounts, too many credit card accounts may have a negative effect on your score. In addition, many scoring systems consider the type of credit accounts you have. For example, under some scoring models, loans from finance companies may have a negative effect on your credit score.
Scoring models may be based on more than the information in your credit report. When you are applying for a mortgage loan, for example, the system may consider the amount of your down payment, your total debt, and your income, among other things.
Improving your score significantly is likely to take some time, but it can be done. To improve your credit score under most systems, focus on paying your bills in a timely way, paying down any outstanding balances, and staying away from new debt.
To learn more about how to fix your own credit score and get a 750 watch the video below for more information about our Income Shifting Membership which not only teaches you how to fix your own credit in 12 video modules.
What you will learn:
MODULE 1: Introduction to our 750 Credit Plan
MODULE 2: How to obtain you credit report and credit scores
MODULE 3: How to read your credit report
MODULE 4: How to dispute items on your credit report
MODULE 5: How to remove negative payment history
MODULE 6: How to reduce credit utilization
MODULE 7: How to add positive credit history
MODULE 8: How to properly apply for new credit
MODULE 9: How to get credit mixture
MODULE 10: How to check disputes
MODULE 11: Income Shifting
MODULE 12: Summary of the 750 credit plan
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