How to raise a credit score? More than 35 million Americans are asking themselves the same question. Your 3 digit FICO score determines whether you will get approved for a major mortgage or auto loan. But the importance of your FICO goes beyond shopping. Employers, landlords and insurers are also pulling your credit score in order to evaluate applications. The growing significance of your FICO makes having a good credit a simple necessity.
Here are 3 simple tips that will help you raise credit fast
1 Correct mistakes.
Under FCRA (Fair Credit Reporting Act) you are allowed to dispute any erroneous, incomplete, questionable, biased and unverifiable item on your report. The fastest ways to dispute this kind of information is the so called Rapid Rescore Strategy (normally results come in 48 hours). However, the Rapid Rescore Strategy can only be done through a mortgage company or a bank. The mistakes should be corrected within 48 hours. If you are not applying for a house or a car loan, you can start disputing negative items yourself. The results usually take about 30 days (45 days if you used the service of annualreport.com). Never file your dispute online, because this way you will have no written proof of your dispute. And you will not be able to dispute specific information within the listing (wrong balance, wrong date the account was opened etc). Under FCRA you are also allowed to dispute on various levels-collection agencies, credit bureaus, original creditor.
2 Validation of debt strategy
A popular strategy to raise credit score fast is to ask for validation of debt from various sources. Under the Fair Debt Collection Practices Act credit bureaus, collection agencies and original creditors are required to provide documents that the debt is valid upon the request of the consumer. Failure to provide such paperwork should result in the deletion of the negative item. The heavy bureaucratic machine and the miscommunication among agencies is the reason that much documentation is lost along the way.You'll be surprised to find how many agencies do not have the proper paperwork to validate the debt.
3 Aim for deletion.
Most fast credit repair strategies aim for the deletion of the negative items from your report. Why? Paying off a negative item will not unnecessarily raise your score. Deleting a negative item, however, will instantly boost your credit. The hard part is how to leverage with credit bureaus, debt collectors and original creditors and extremely convince them to remove the negative items. And this is where little known credit tricks come into play.
How to raise a credit score fast? The answer is simple. Educate yourself on the inner workings of the credit system and the various loopholes in it. Once you start thinking outside the box, you'll be surprised to find how easy credit repair actually is.