How to Improve Credit Fast!

Did you know that an estimated 90% of credit reports contain errors of some type?

Luckily, if there are errors on your report (or even things that are accurate that you just wish were not there) you can dispute these trade lines.

Credit bureaus are required to confirm the accuracy of accounts when they are disputed. The Fair Credit Reporting Act gives lenders only 30 days to verify the account before the credit bureau is required to remove it from your file.

This means that if the creditor misses the cut-off date, the disputed item must be removed, even if it is accurate!

So, where do you start?

Well, obviously, the first step should be to dispute anything that is not accurate. It is very helpful if you can provide proof to the credit bureaus, but is not always necessary.

Next, move on to accounts that are older and were once past due but are now completely paid off. The reason for this is that your information can be difficult for the lender to find and they are much less motivated to take the time to verify than they would be if the item was currently in collection or past due.

If you have ever filed bankruptcy, you will want to carefully go through your report and make sure that every account that was included in your bankruptcy is being accurately reported. Frequently, creditors will still report accounts as open and delinquent even if they were discharged in a bankruptcy.

Another key area to play close attention is negative accounts that are more than seven years old. Accounts should only be reported for seven years from the date of last activity. If you have an account that is older than this but still reporting, make sure you dispute it!

Ok, so now you know that if you have negative items in your credit history you can dispute them.

But what about if you have little or no established credit? (Or if all of your credit is bad!)

Getting started can be difficult, especially if you are not just out of school. If you have a good relationship with your bank, this can be a great place to start.

You can see if they will open up a credit card or other loan for you. If they say no, see if you can get a CD loan or a secured credit card.

With both of these options, you will take a certain amount of money and give it to them. For example, if you were to open a CD loan, you would give the bank $500 to hold as collateral against this loan. They will then open a loan account for you that you can make payments on to begin establishing a credit history. Yes, you are paying interest on your own money, but in the long run having good credit will pay off.

Another strategy can be to make sure that all accounts that you have had are reporting to your bureau. An example of the types of accounts that may not be reporting are credit union loans, gas cards and department store cards. As long as these accounts are in good stating, you will want to call the credit bureaus and request that they add these accounts to your report.

They will require some documentation from you and may charge you a processing fee.

Now, while you are adding to your credit file, you may be tempted to add a consumer statement.

Don't!!!! They will only hurt you.

There was a time when they helped, but as most lenders rely only on your credit score, this time has past. Some people believe that having a statement in your credit file will lower your score.

While I have never seen proof of this, I have seen credit files that where near perfect with statements explaining bad credit. The bad credit was gone but the statement about it still remained!

The bottom line is that there is just no advantage to adding this statement. (You can always submit a letter of explanation when you make a specific loan application.)

Wendy Polisi is the founder of Credit Repair College and Finance the Dream. Their weekly video training teaches the insider secrets of credit repair. For more information on credit repair, please visit them on the web. Finance the Dream can help you find a rent to own house in all 50 states with their custom HomeFinder program.