"Who Else Wants to Know How I Got Negative Items DELETED from My Credit Report & Raised My Credit Scores 180 Points?"

“The most important thing for a young man is to establish credit – a reputation and character.” John D. Rockefeller

John D. Rockefeller could never have imagined how long his statement would live on and remain relevant. In years past, local merchants extended small lines of credit to only the most creditworthy individuals. The average Joe paid cash for everything except their mortgage and possibly their car. Credit lines were only extended to those who could conservatively afford the payments.

Today, Americans finance just about everything from education to dental work. The credit card companies entice us with reward points and airline miles. There is even one creditor that offers cash back on all purchases, which tricks the consumer into thinking that they are saving 3% on every purchase they make.

Using credit for everyday purchases is a way of life for most Americans. Despite this fact, most people are not well versed on how your credit score is calculated. Your credit score is calculated by a fairly complex formula, that is driven by the information on your credit report. Your credit report contains the information on all of the credit lines that you have been extended, the amount of credit that has been awarded, and the manner in which you have paid your obligations.

Consider the following two statements:

• If you borrow money conservatively and repay the debts on time and as promised, your credit score rises.
• If you have multiple lines of credit, and pay them each on time, your credit score will be lower.

The above two statements contradict each other, but both are 100% true. You are rewarded if you borrow and pay back a few debts, but penalized if you borrow from several credit card companies at the same time, even if you pay them as agreed. Why? Because taking on too much credit is considered risky behavior. This is only one example of the confusing and complex criteria that is used to determine your credit score.

The interest rate that you will pay is based on your credit score. The most competitive rates are extended to borrowers with a score of 700 or higher. The lower your credit score, the more you will pay for the cost of credit. For major purchases, such as a car or home, your credit score is very important. A 1% difference in an automobile purchase can increase your monthly payment by $80! A monthly mortgage payment can increase by as much as $300 for a .25% increase in the interest rate.

If you are like me, you have had problems meeting your financial obligations and your credit score is low. Maybe you have fairly good credit, but you want to increase your scores in preparation of a home or automobile purchase. The good news is that you can take specific actions to boost your credit score.

Pay down your credit card debt – Carrying lower credit lines demonstrates your ability to use credit conservatively and will increase your credit score. Do not close lines of credit once they are paid off – Your ratio of available credit to outstanding credit increases your credit score.

The way to have the greatest impact on your credit score is to have erroneous information removed. Late payments are frequently misreported by credit card companies. Many people have debts on their credit reports that are simply not theirs. You can write letters to the credit card and credit reporting agencies and request that the information be removed or contest the reported items. The process to do this complicated and time consuming for the average consumer.

Credit attorneys and credit repair companies are extremely effective in working with credit card companies and consumer reporting agencies. They typically charge a flat fee for their services and get the job done quickly. Doing it yourself can take up to 24 months and there is no guarantee that you will get it right the first time.

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