What You Need to Know About Fixing Your Credit

Make Sure You Get Your “Real” Scores!
Many lending institutions use scores calculated by FICO (also known as Fair Isaac) and measured out of the information in your reports with the primary national credit bureaus Equifax, Experian, and TransUnion. Keep in mind that  the credit scores sold at freecreditreport.com, TrueCredit, CreditExpert, and other mainstream credit report monitoring websites provide different scores than the ones that lenders use! Too many of these offers aren’t as free as they seem and their ‘knock-off’ scores can be considerably lower or higher than your FICO scores. Don’t fall for this!  More info on credit score repair can be found at Home Loan Credit Score.
 
There are 5 Major Areas Considered in Your FICO Scores
Timely bill payment is more important than just about any other part of a strong credit report and score. That being said , only 35% of your FICO scores are based on your payment history! Therefore , any type of less than favorable information – no matter what is considered from that part – is really only going to affect about 1/3 of your credit score. The rest of your scores are related to your activity with your current accounts, the length of your credit history, the various types of accounts you use and how you obtain new accounts. It’s always beneficial to maintain healthy accounts (especially credit cards) and use them wisely.
 
Paying or Disputing Some Accounts Can Hurt Your Scores
Another thing to consider is , just settling accounts that have been sent for collection will have very little affect, if any on your credit scores. Very often it can even bring the account to light again and be re-reported, lowering your scores! Credit scoring is an intricate algorithm where even fixing unfavorable information can unwanted results on your scores; this is not a process that always makes sense . There is a complex path to approach your credit card debt, your collections, and especially your medical bills – don’t take for granted that normal rules apply  before talking to a professional!  
 
Don’t Close Your Accounts!
Closing accounts will never help your credit scores – not only will you reduce your open credit amount , but also cause your credit history to be reduced in the end . Make sure you avoid this kind of error! Building a stable, lengthy, and diverse credit history with at least one major credit card has a huge impact . Surprisingly even paying off an installment account like a car loan or student loan could actually hurt your credit scores? It’s not a good idea to dive in and pay a debt in full without knowing where you’ll get the biggest bang for your buck!
 
New Negative Information Can Drop Your Scores 40-80 Points
When taking on the task of repairing your credit , make sure you map out a budget so you there is no mystery about how your money will be spent and be alert for any new collection notices . Only 1 new 30 day late payment or collection can harm your FICO scores 40 to 80 points! Don’t let anything be overlooked and affect all your hard work as you restore your credit standing.   
 
It Only Takes 45 Days to Turn Things Around
You may have heard your credit is done for 7 to 10 years before you can make large or even small purchases on credit again. Luckily, nothing is further from the truth . Though fixing your credit yourself can take years and working with a credit repair company can take many months , there are ways to better your credit in just less than 2 months . By working with the most knowledgeable credit score professionals, you can get you credit score increased again. If you correctly work to address every area considered by credit scoring models you can get the best results in the fastest amount of time . To learn more about how to improve your credit score and learn how to find the right Credit Score Professionals visit Home Loan Credit Score.

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