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Raising credit score
I had credit scores of 480 on 1/07. I have paid all my collections and have not missed any payments or house payment since 1/07. My score is now 580 and 633. What else can i do, like removing lates for my credit history?
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1 Reply
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Let’s be sure to focus on the next steps in case you have any concerns with payment being filed as ‘late.’ It is a good start that we consistently received payments as well as paid off the collections, but here is what you may need to do to address any previous late payments:
Request Goodwill Adjustments: If you have been consistently paying on time since 1st January 2007, contact the creditors and discuss the possibility of a goodwill adjustment. This is a request to delete old late payments made on your record. Some creditors may be willing to do so if the payment history is quite strong.
Dispute Any Inaccurate Late Payments: Understanding that you have any errors present in your credit reports is important. Suppose there are late payments that need to reflect your financial discipline accurately. In that case, you must file a dispute with credit bureaus. When texting your creditor inaccuracies in the report, correcting these misrepresentations can assist you in getting an improved score.
Establish a Mix of Credit Accounts: If you have only one or two forms of credit (for instance, only a credit card and a mortgage), consider widening your accounts. Adding a secured loan or a credit builder loan can increase your credit mix, which will benefit your score as time passes.
Maintain a Low Credit Utilization Ratio: If you use credit cards, ensure your utilization ratio is below 30% or around because lower credit usage will help raise your score. A goal of 10% or less is even better.
Consider Becoming A Co-Borrower: If you can find a relative or a close friend with a good credit card score, ask that person if you could use one of her accounts as an authorized user. This move can help raise your score if the main account holder maintains a good credit history.
Make these changes to your habits in addition to these tips. You will qualify for better rates and terms on a mortgage. Do get in touch with me if you require more specific ideas!