Quite simply, there are some extreme factors used to determine what your credit score actually is. But here’s the kicker…when this information is incorrect, inaccurate, outdated, or just plain wrong, it can and will damage your credit score for years. Far beyond the time it was actually put into your credit file.
To repair your credit score fast, the first thing you must understand that there are two types of credit reports that you can purchase.
1. Standard Credit Report – The report most lenders and creditors purchase
2. Investigative Credit Report – Contains more detailed information about your financial history and your behaviors.
And get this; insurance companies, employers, and other businesses have access to consumer reports about you that include information other than your credit history. But before I jump into the details, understand that the responsibility of checking and re-checking your credit report is solely your responsibility.
I think the number one problem with people who have low credit scores is excessive credit card use. With that being said, you must obey one main rule when working to improve your credit score and here it is: Eliminate or significantly reduce the amount of spending you do using your credit cards.
My hunch is that you find it hard to keep your credit card balances low. Am I right about you so far?
Do this – take a quick peak at your credit card balances and any other revolving accounts. Consider just where you stand. Here’s another way to think about it: Outstanding debts make up 30 percent of your FICO credit score calculation. In a nutshell THAT’s what creditors take into consideration when determining your credit worthiness.
Let’s look at another example that can help you increase your credit score. Opening new accounts often backfire. You see, additional inquires into your credit over a short period of time can wreak havoc on your credit score.
Why?
Because lenders assume you are in financial trouble when they find you are trying to open new accounts fast. I’m telling you…limit your credit card spending and watch you score rise. Just keep a watchful eye on how often you use your credit cards and then stop when you notice you are taking things too far. All in all there are many factors involved in to help you repair your credit score fast. But, as you finish every line in this article you’ll begin to understand just how much your credit score says about you.
Where will you go from here?
Well if your credit is bad then you may want to look into self credit repair. If you are not sure what this is or how to do it you are not alone. Many people are not sure how to fix their credit scores but a good book on the subject like 37 days to clean credit can help you understand and carry out this credit score boosting process.
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