Credit Repair Guidelines

How to Raise your Credit Score

Use the following information as a "guideline" when repairing your credit scores. The reporting agencies have a computer model that generates the credit scores using 40 different criteria. The models differ for each repository and not all financial institutions report to all three credit bureaus. Hence, the reason the scores from the three bureaus can differ from 50 to 100 points. Based on our years of experience and information tracked by other companies and individuals, the following factors have been fairly consistent in how they affect credit scores.

1. Look for any past due balances on the credit report and bring them current.

2. Reduce all revolving debt to as close to a zero balance as possible. If unable to pay all debt down, evenly distribute any remaining debt among open credit cards, or consider opening a
and transferring some of the balances. Try to keep balances below 30% of available credit; near zero would be even better. Do not close existing accounts or open new ones unless you have been counseled on the ramifications.

3. If married, keep separate credit cards. This provides flexibility in transferring some or all of the balances to one spouse to increase the credit score of the other. This provides the possibility of one spouse becoming the sole borrower and it does not change the ownership of the home.

4. Request an increase in available lines on cards to reduce debt ratio, but only if your credit card company can do that without a hard credit inquiry. Also make sure that the high limit being reported matches the maximum credit limit on each credit card. If it does not, request that the credit card company report the maximum limit available. Many times the reported high credit is actually the maximum amount you have charged on the card, not the maximum credit limit available to you. This will make it appear as though you have used 100% of your available credit when you have not.

5. Pay off past due collections, charge offs, liens and judgments that are with-in the last 24 months. Paying off these items when they are older than 24 months can have a temporary negative effect on your scores. Refer to "Credit Repair Guidelines".

6. Request that creditors and credit bureaus delete any outstanding debt that is incorrectly charged to you or has yet to be cleared. They have an obligation to react within 30 days. If you choose to pay off an outstanding debt (less than two years old) mark the back of the check "accepting this check is evidence that the transaction is complete and this charge will be deleted from my credit." You may be able to use the cancelled check if the outstanding debt is not removed.

These are some of the steps covered in any credit repair program. Good credit is the key to reducing monthly payments and saving money long term.

For more information or to begin repairing your own credit, visit www.creditrepair-4you.com.