Top 5 Issues To Quickly Fix Bad Credit

We all want to quickly fix bad credit; here's how.

There are 5 big things that make up your credit score, and when you know how to manipulate them, you can make big improvements to your credit rating. Some have more weight than others, so you will want to focus those areas that will have the biggest effect to your score in the shortest amount of time. That way you can instantly get approved for the mortgage or auto loan that you need.

These five things, in order of importance, are:

1. Your Payment History (35% of your score)
2. The Amount of Credit You are Currently Using (30% of your score)
3. Your Credit History, or Length of Credit (15% of your score)
4. How Regularly Your Credit is Checked by Lenders (10% of your
score)
5. The Different Types of Credit You Have (10% of your score)

These percentages are how these 5 factors weigh on a typical consumer. The exact percentages may slightly vary, but this is a pretty accurate generalization.

Based on this, the fist thing you want to do to improve your credit score is to take some time working on your payment history. That doesn't necessarily mean just paying your bills on time.
If you made late payments in the past, there are steps you can take to have those mistakes erased from your credit report.

Another quick fix to improve your payment history is to open a secured credit line and use it to make small purchases. Even if you just charge $0.10 and pay the bill off in full each month, your
credit rating will dramatically increase within 30 – 60 days.

That's a long time, but there are other things you can do to immediately increase your score. Probably the most overlooked way boost your rating is to consider how much credit you are actually using. In other words, are you maxing out your credit cards or staying well below your available credit limit? By simply moving your available credit to outstanding debt ratio to around 25 percent, you can instantly increase your credit score.

To quickly fix bad credit requires using a few tricks of the trade to make it happen.

Bad Credit Report Repair

Bad credit report repair begins by seeing what's on it. You may get access for free online. Try a search for "free credit report." Alternately, when you are denied credit based on a report issued by a local credit reporting agency, you can request a free credit report from that agency within 30 days.

A quick look and you'll have an idea why you were denied credit. Now how do you fix what you see? What if you find incorrect information on the report? What if you want to change information that is accurate, but unfair?

First, if there is anything you want to dispute in the report, you can write a letter to the agency. Tell them exactly what is incorrect, and they must investigate. Send copies of any documentation, such as canceled checks, and send it all by certified mail.

The agency must contact the source of the disputed information. If they recieve no confirmation within 14 days, they must delete the item from their files, and send you an updated report. You can demand that they send the corrected report to all creditors that recieved your credit report in the previous six months. This last part won't be done automatically, so be sure to demand it.

Honestly, if the item is under $500, or is more than a year old, usually creditors don't bother to respond. This means fixing a credit report is possible even if it isn't incorrect. Also, if you don't succeed on your first attempt, you have the right to dispute the item again after 30 days.

Put Explanations On Your Credit Report

When an item can't be removed, you have the right to add a 100-word explanation permanently to your credit report. All who recieve the report will see your explanation. For example, if you had a valid argument with your doctor over a charge, you can explain the details.

Fixing a credit report may take a long time if it is based on a history of late payments and loan defaults. But even in this case, you can correct little errors, and explain anything that isn't fair. This will make it look a little better while you start paying bills on time and doing the other things necessary.

Click here for more on how to fix bad credit reports.

Repair Tips: How To Quickly Fix Bad Credit

Usually, when we need to quickly fix bad credit, it's because of irresponsible money management. But it often occurs because of unexpected financial hardship. One day you might have all of your bills current, and the next you could become disabled or lose your job. And if you fall behind on your debts, it will wreak havoc on your credit rating.

Credit repair agencies claim that they can remove bad entries from your credit report. But did you know that you can often have them removed yourself at a much lower cost? There are two methods by which you may be able to get negative entries removed from your report.

Option #1: File a Dispute with the Credit Bureaus

The Fair Credit Reporting Act (FCRA) requires credit bureaus to investigate any item on your credit report that you dispute. If the information is found to be false, inaccurate or unverifiable, it must be corrected or removed from your report. The bureaus have 30 days from the time they receive notice of the dispute to complete their investigation.

If there is any inaccurate information on your credit report, a dispute is certainly in order. But some people have had luck disputing items that were in fact accurate, including judgments, collections accounts and repossessions. If such items are not verified by the creditor (or the court in the case of judgments) within the time limit for investigation, they must be removed.

If you decide to dispute a legitimate entry, simply write a letter to each of the credit bureaus stating that you dispute that entry. No explanation is required. But keep in mind that if the entry is verified, it will remain on your report. And if the creditor verifies the information after the 30-day time limit, the credit bureau may reinstate the entry as long as they notify you at least 5 days before doing so.

Option #2: Negotiate with Creditors

Dealing with creditors can be intimidating, especially if you're not on good terms with them. But speaking to your creditors directly may help you get negative information removed from your credit report.

If you only have a late payment or two on your account, a creditor might be willing to remove the derogatory information once you've resumed a regular payment schedule. If you've experienced repossession or had an account turned over to collections, payment in full might persuade them to remove the negative entry. It sounds like a long shot, but you never know until you ask. Requests to remove late payment information may be made after you've brought you account current. But if you're hoping for removal of a repossession or collection action, it's best to negotiate a deal before you pay anything.

If You Can't Get the Bad Entries Removed

There is no guarantee that disputing information on your credit report or negotiating with creditors will get negative items removed from your record. If it doesn't, the best thing you can do is try to build up some positive information on your report.

The first thing you need to do when trying to rebuild good credit is bring past due accounts current. Try to work out a deal with your creditors to accomplish this, or talk to a credit counseling agency. But don't miss payments on current accounts to put money toward those that are past due. If it comes down to paying one or the other, keep the current account current.

Follow these tips and you can quickly fix bad credit. Once you've brought all of your accounts current, put a priority on keeping them that way. Making your payments on schedule will raise your credit score, and with the passage of time, the good entries may outweigh the bad, quickly fixing your bad credit score.