Low Credit Score? : How to “Fix” Your Credit Yourself

Did you know that credit repair services can't do anything legal when it comes to repairing your credit? They are basically just looking to remove incorrect information from your credit file and that's about it.

Sometimes, a credit repair company could cost you thousands of dollars. This article will show you how you can act on your own behalf to help yourself. 

Once you've pulled your credit and see all the negative items, 

Did you know that you can negotiate a payment with creditors if you have negative items on your credit report? 

It is possible to negotiate a removal of a negative item from your credit report. If it is a simple one time late payment, a creditor will often remove it to keep you as a loyal customer. It is all about connecting with them directly and making sure they know you care enough to call and get the problem solved. 

One of the best advice I heard from a credit repair expert was: 

"Do not pay off a bill that has gone to collections unless the creditor agrees in writing that they will remove the derogatory item from your credit report. Also: never admit that the debt gone into collections is actually yours. Admission of debt can restart the statute of limitations and may enable the creditor to sue you. Admission also hurts your negotiating power. Simply say “I’m calling about account number ___________” instead of “I’m calling about my past due debt.”

Pay all credit cards and any revolving credit down to below 30% of the available credit line. The scoring system wants to make sure you aren’t overextended, but at the same time, they want to see that you do indeed use your credit. 30% of your available credit line  

For example; if you have a credit card with a $1,000 credit line, make sure that your balance is never more than $300 (even if you pay your account off in full each month). By keeping your credit cards this way, it will allow you to ask your long-time creditors if they will raise your credit line without checking your FICO score or your credit report. You can tell them that you’re shopping for a house, and you can’t afford to have any hits on your credit report. 

This will help you raise your credit score in no time.

Remember, do not close your old credit card accounts. Old established accounts show your history and let future creditors know about your stability and good payment habits. 

Cut up the cards if you don’t want to use them, but keep the accounts open. This is a mistake a lot of people make. 

The credit score is the most important factor in determining whether a person will be approved or denied for a mortgage loan. In order to get a loan, you must first be prepared, consult with your real estate agent first and get the right bank/lender to apply for one. 

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