Three Things You Can Do to Improve Your FICO!
If you would like to learn more about how to fix your credit fast, then you will want to read this article. We will be discussing three easy strategies you can implement to have an immediate impact on your credit score. After reading this article, you should have a clear idea about things that you can do to improve your credit.
Pay off revolving accounts
Without a doubt, one of the easiest ways you can improve your FICO score is to get out of debt! Specifically, you want to eliminate as much revolving debt as you can. Becoming debt free is good, but at a minimum you want to try to pay off each of your credit card accounts down to the point that the balance is 25% or less than your total credit line.
Become an Authorized User
New credit scoring rules went into effect in the summer of 2009. The new guidelines are called FICO 08. They make significant changes to how authorized user accounts impact your score. The reason for these changes was that people were paying strangers to add them as authorized users on their accounts. The changes have lead many people to believe that you can no longer use authorized user accounts to improve your credit ranking. This is not true. This actually is not the case. You can benefit, but only if it is a parent or spouse that is adding you. Anyone else will not help your credit score.
If you do have a parent or spouse with good credit, this can be a great way to improve your credit score. Choose an account that has a low balance and has been open as long as possible. You obviously also want an account with perfect payment history.
Dispute Questionable Items
Did you know that an estimated 87% of all credit files have errors? These errors are dragging down people’s credit scores and costing them money. The law does not require the credit bureaus to verify information in your credit file. Unless you take an active part in your credit, these mistakes will never be removed. You want to write a letter to the credit bureaus to dispute any mistakes you find in your credit report. Also take a look at any derogatory credit that you find questionable.
When you file a dispute with the credit bureaus, they will notify your creditor. Your creditors will be given just 30 days to respond. Unless they verify that what they are reporting is inaccurate, it will be removed from your credit file.
Vincent Polisi is the founder of financethedream.com, the nation’s premier rent to own program. To see rent to own homes listings, please visit us on the web.
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