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10 Ways To Boost Your Credit Score  By: Dave Czach


1. Deleting Errors in 48 Hours


This is the absolute fastest way to correct errors on your credit

report and raise your credit score. However, it can only be done

through a mortgage company or a bank. If you apply for a home

loan and find errors on your credit report, request the loan

officer to conduct a Rapid Rescore. But don't mistake it for the

credit clinic tactic of multiple dispute letters.


The Rapid Rescore strategy requires proper paperwork. You need

proof that the item is incorrect. It must come from the creditor

directly. For example, a letter stating the account is not your

account, a letter stating the account was paid satisfactorily,

a release of lien, a satisfaction of judgment, a bankruptcy

discharge, a letter for deletion of collection account or any

relevant evidence.


This is the same documentation a bank or mortgage company would

require for the credit accounts anyways. The difference is, now

you can improve your credit score and receive a lower interest

rate. The results are not guaranteed and will run you about $50

per account.


2. Deleting Negative Credit


This is the infamous area where you've heard of all the scams.

Credit repair clinics charge "an arm and a leg" and promise a

clean credit report. Sometimes even a new credit profile! People

spending hundreds, or even thousands, of dollars for something

they can do themselves.


Removing errors is simple. Deleting negative credit that is

accurate requires advanced methods. But that is not the scope

of this report. So I'll focus on the deleting the negative



Credit report errors easily disappear by using a simple dispute

letter. If you have the paperwork proving the error as mentioned

above in Rapid Rescore, send copies of that along with the

dispute letter. This will make the credit bureau's job easier and

you will get faster results.


If you don't have the documentation to prove the error(s), send

the dispute letter anyway. According to federal law, the credit

bureau's have a "reasonable time" to validate your claim. They

will contact the creditor for verification of your dispute. Then

the account will be reported accurately - or deleted. It has been

generally accepted the "reasonable time" to complete this task is

30 days.


If you're not the do-it-yourself kind of person. Or don't have

the time. You could hire someone who is very economical.


3. PiggyBack Someone's Credit


This is a fast and great little credit score booster. But it

requires a very trusting relationship. Simply put, someone else

adds you to their credit account. For example, when applying for

a credit card, you may have seen the section to add a card holder.

If your trusting person adds you, their payment history is now

reported on your credit report too. If they have perfect credit,

now you have a perfect account.


To make this more effective, use an aged account. Imagine if your

trusted person has a 10 year old credit card account with a

perfect payment history and a balance of only 50% of the credit

limit. Wouldn't you love to have this on your credit report? The

easy part is your trusted person just calls the credit card

company and requests a form to add a cardholder. Once completed

and activated, their entire account history and future is now

firmly planted on your account. Imagine if you secured 3-5 of

these accounts - especially installment accounts. Your credit

score could sky-rocket!


The challenging part? Finding the trusted person. Since you already

have a low credit score and bad credit, how eager will someone be

to make you a cardholder? Even your parents don't want you to

damage their credit. But, no one says you need to possess the card!

In other words, your trusted person could add you as a card holder

and never give you the card or PIN or any information. Since the

bills and all account information is still mailed to the trusted

person's address, you won't know anything about the account. This

scenario could land you many trusted persons. And you still benefit

with a higher credit score.


4. Playing Round Robin


This strategy is one of the oldest credit building techniques

around. It used to be accomplished with secured savings accounts.

But now, it's much easier with secured credit cards. In fact,

I've used this method myself.


Here's how it works: Take ,000 (or what you can afford) and get

a secured credit card. Once received, get a cash advance of 70%

of your credit limit. Get a second secured credit card. Once

received, get a cash advance of 70% of your credit limit. Get a

third secured credit card. Once received, get a cash advance of

70% of your credit limit.


Open a new checking account with the final cash advance. Use this

account only for making payments on your three new credit cards.

If you make your payments on time every month, your credit score

will increase because you now have three new perfect payment

credit cards. (Initially, your credit score might drop a few

points due to the rapid, multiple accounts being opened. However,

be patient because within 4 months of no new accounts or any

delinquencies of any account, you will see your credit score

increase. Mine increased 60 points in 60 days!!)


5. Pay on Time


This one is quite obvious. But after 12.5 years in the mortgage

business, I discovered it still needs repeating. Your creditors

were gracious enough to loan you money. Now pay your damn bills!

If you don't, your credit score decreases. EVEN IF ONLY 30 DAYS



That's right folks. For some reason people think, "I'm only a

few weeks late. What's the big deal?" Well, for the loan company,

if you pay late but consistent, they make a lot more money with

late fees and more interest (if a simple interest loan). For you,

your credit score is damaged. If you think long-term and credit

score, I'm certain you would not have a cavalier attitude.


6. Pay Down Debts


This seems like an obvious method, doesn't it? But it is not as

transparent as you might think. Remember, we're playing with

high-level statistics and probabilities which evaluates and

forecasts trends in your behavior. Here's what you do...


Never pay off your revolving debt in it's entirety! Isn't that a

surprise? Think about it. Your credit score is a reflection of

your ability to manage your credit. Paying off your debt is not

managing your debt. If you have a zero balance, how can you manage

it? You don't. It no longer exists. And you cannot manage what

does not exist, right? Therefore, in terms of credit score, you

have demonstrated your ability to swiftly pay off accounts to

avoid managing them. Thus, slightly decreasing your credit score.


One exception, of course, is if you're over extended to begin

with. Pay off what's necessary to make your credit profile look

great. Then manage the remaining credit.


7. Don't Close Accounts


Even if you pay off revolving debts, do not close the account.

The longer an account is open with no negative reports, the

better it reflects in your overall credit score. This is due to

the weighted-average in the credit score formula. Many credit

experts suggest a balance of 30% of your credit limit. That's

ideal. But you can go as high as 70% and still maintain a

healthy credit score.


8. No New Credit


You must be vigilant in your credit behavior if you want the best

credit score. Therefore, do not get any new credit unless it is

absolutely necessary. Each time you apply for credit, an inquiry

is added to your report. This usually drops your credit score

slightly. When you have fresh credit, there is no track record

how you will manage (or pay) this account. Therefore, it's a

higher risk which results in a minor drop in your credit score.

Remember, your credit score is about risk assessment.


Here's what you do: obtain credit for your housing, transportation,

college or continued education and 3-5 credit cards. That's really

all you need for personal credit. If you want more credit, request

a credit limit increase on your current cards rather than apply

for new ones.


9. Maintain A Mix of Credit Types


If you show you can handle different types of credit at the same

time, you are rewarded with a great credit score. In other words,

get installment loans like vehicle, personal loan or mortgage.

Get revolving credit like credit cards: Visa, Mastercard, Sears,

Sunoco Gas, Costco. By mixing it up, you demonstrate you can

manage your credit because you will have short term and long term

credit with a fixed payment. As well as a "variable" monthly

payment on your credit cards.


Keep these accounts open with a balance of 70% or less and paid

on time and you will witness your credit score climb to great



10. Don't File Bankruptcy or Foreclosure


Here's the most obvious advice: Don't file for bankruptcy or

foreclosure. These stay on your credit report for 10 years and

always decrease your credit score. The older the bankruptcy or

foreclosure account becomes, coupled with re-built credit

history, the less of an impact they play on your credit score.


Contrary to popular beliefs, you can legally delete a bankruptcy

and foreclosure. It's not easy. But it's possible. See the

advanced methods for that solution.


To quickly rebuild your credit history after a bankruptcy or

foreclosure, use the Round Robin strategy above and get secured

credit cards. Now you can even get a car loan or mortgage right

after bankruptcy.




© 2004 David Czach.

About the Author


Dave Czach has 12 years experience in the mortgage business and

a Bachelor's Degree in Real Estate. He can be reached at





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