Do it yourself- Repair Your Credit (Part 2 of 3)
Additional tips for raising your score:
A. Pay credit cards and revolving credit down below 50% of what is available (line amount.)
B. Do not close credit cards after you pay then off. Keep them open. Some people do not understand how this works and will tell you to close your credit cards. That is totally incorrect. In addition to helping to raise your score some loan programs will specifically require a number open and active trade lines.
C. Limit the number of people who pull your credit, whether for a car, cell phone or mortgage. NOTE: you pulling your credit as above is called a "soft pull" and will not show up on your credit and will not lower your score.
D. Want to improve your credit scores by 10 points? While this is no guarantee, it does work! It is simple and works fairly quickly. You can electronically Opt-Out at one of the credit bureaus. I have seen this improve credit scores up to 20 points. The benefit is that no pre-screened offers for credit cards or other credit will be sent to you from Companies who use the credit report information for pre-approvals. The score improvement is created by limitations of securing additional credit and prevents credit card companies from pulling/viewing your credit without your permission. How do you think you are pre-approved? Now you know. While this does not inhibit you from obtaining credit, it limits the ease of just mailing in a pre-approved offer.
E. Another way to improve your credit score or increase your limited credit is to have you apply for a secured credit card. Exercise judgment when doing this. In cases where you have limited credit, this will add another trade line and help you. You must keep this current and only do this with one or two items not many. See below for more information on this.
How Long Does Information Stay on a Credit Report?
Credit information can, and usually does, stay on a person's credit report for seven years. Collections stay on the report for seven years from the date of last activity -- whether that is the date that the account was filed as a collection or the date the account was paid in full. Here's an example:
"Jane Doe" had a collection for $300 filed against her in October of 1994, and she hasn't paid it. It is now September of 2001, so in a few weeks that collection can come off of her credit report. (She will probably have to request of all three credit bureaus that they take it off.) However, Jane has applied for a loan today, and the loan officer tells her that she has to pay off that debt in order to be approved. Since she has the money, she pays it off. Because the date of last activity is now September 2001, the collection will show on her report until September 2008 -- another seven years.
Bankruptcy information can stay on a credit report for ten years. Information about foreclosures is reportable for twelve years from the date filed. Garnishments, judgments, and tax liens can stay on the report for twelve years from the date of entry or for seven years from the date they were satisfied. Dismissed garnishments, judgments, and tax liens are not reportable.
Type of Information
