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700 to 850 - Excellent or Very Good Credit   

680 to 699 - Good Credit   

620 to 679 - Okay or Average Credit 

580 to 619 - Low Credit 

500 to 580 - Poor Credit 

300 to 499 - Bad Credit 

Things such as late credit card payments, or other bill payments, have a very negative impact on your score. For example, someone with an average good credit rating of 700, can increase their score by as much as 20-25 points, simply by making all of their monthly bill payments on time. Increasing debts can have a negative affect your credit score. By maxing out all of your credit cards you can lower your credit score by as much as 60 to 100 points. By keeping an active credit card, and making all of your monthly payment on time, you are actually helping your credit more than if you did not have a credit card at all. This is because the FICO credit scoring system works to show that whether you are a responsible borrower, who is not in over their head. A major benefit to checking your FICO credit score is to check for errors and out-of-date or inaccurate information. Detecting other things, such as identity theft and fraud, are other excellent reasons to check your FICO credit score and credit report. If you find any errors or inaccurate information, you can notify the credit reporting agency to remove them, boosting your overall credit score. 

How Do I Check My FICO Score and Credit Report? 

Now that you are aware of how your FICO score impacts your finances, you may be wondering “How do I get a free online credit check?” Easy, To learn more about obtaining a free online credit report, visit http://freeonlinecreditcheck.googlepages.com an excellent resource on credit reports and your credit score. There are dozens of websites that offer totally free credit reports. There are so many, in fact, that it can be a little bit overwhelming when trying to decide which company to choose. Some things to look for when choosing a credit reporting service are: ease of use, customer service and assistance, detail of reports, accuracy of reports, and whether they offer to assist in repairing your credit score. 

Repairing an unfavorable credit history starts with paying off the debts that have caused it. Casting aside all the reasons that led to default on payments, when you start to show financial improvement, this is the time to get back on track to rebuild your bad credit. Please bear in mind even you have start to rebuild credit history, the bad marks may still be on your credit reports. So what can you do? The few steps below will provide a little help if you have not already done so.

Although rebuilding credit is much easier than paying off all the debts, do not expect any result overnight. It takes some time to make progress. Give yourself 12 months to restore your credit. This is the realistic timeframe for rebuilding credit.

Secured Credit Card
Secured credit card is the first option you can consider. To get you started using secured credit card, an initial sum of money must be deposited into your account. The credit limit will most likely equal to the amount of your deposit. The most important is to show good financial behavior and the bank will raise your credit limit in due time. Secured credit card may not be the card of your choice but it can be a stepping stone to rebuilding credit since most credit card companies will reject your application due to the bad credit history.

Gas Station Credit Card
If you need to buy gas, send your car for service, or make payment for a meal in the gas station, you can consider applying for Gas station credit card. If use it carefully, it can help to rebuild credit history.

Department Store Credit Card
Another option is to make use of department store credit card to rebuild credit. You will have many chances to make purchase since there are thousands of different goods sold in department store. Remember to keep your card balance when making any purchase. Do not overspend and tie yourself down.

Secured Personal Loan
Secured personal loans can also help to rebuild credit. Secured personal loan are loans that require a property as collateral. Lenders favor secured loans as compared to unsecured since they are eligible to sell your assets if you default on payments.

Regardless of the types of loans, you should not default on payments at all times. Just remember to pay more than the minimum payments if you just cant afford to pay off the entire debt. It significantly reduces your debt and interest you have to pay in due times.

Having said that, all you need is time to rebuild your FICO score. Do not expect immediate result. People who claim that they can restore your bad credit history in no time are nonsense. It is just too simple to accomplish a tough mission which will take at least six to twelfth months to see some results. However hard you may have tried, the general rule of paying the loans on time is the first and foremost rule you must follow. The rest is just a waiting game.

It may not be so easy to repair bad credit, but there are steps you can take to make the whole process easier. So, when you find yourself in such a situation, the following advice could be of great help.

I think the first port of call should be the credit bureaus responsible for providing credit reports in your locality or country. Each country has established credit bureaus with the task of monitoring your credit performance, as reported by financial institutions and you can always get your credit report from these bureaus, free or for a fee, depending on your country. If there is more than one established bureau, you may want to get each body’s version of your report. It affords you the privilege of comparing the different versions. The reason why the reports may differ is that they are prepared based on the information supplied to the bureaus and it is possible they get different information about your accounts from different reporters.

Once you have the reports, scour them for errors. Don’t be surprised to find mistakes or negative comments that are not true in your reports, it happens. You will also want to take note of credits that have been cleared but are still showing in your report, or accounts you cannot remember opening. Fraudsters do open accounts in people’s names only to clear out the credit when the attached credit line gets reasonable. These are all very bad for your credit rating. You may also find scathing negative comments in your report. For a start, you will need to clear all these anomalies. Get accounts that are not yours removed from your credit report. Talk to creditors who are reporting negative comments about you or still showing bad debts that have been paid. You may be pleasantly surprised at how many creditors are willing to cooperate once you have explained your situation. The bottom line is communication. Talk to creditors; explain the situations you are facing. People can’t help you if you don’t tell them what you are experiencing. Besides, you can file a dispute, if you are sure some negative comments or bad debts are not supposed to be on your credit and the creditor don’t want to cooperate, especially when you have documents to back up your claims.

There are times when the scathing comments on your report are indeed true. However, if your account is in a good condition now, you could still talk with the creditors and arrange to get the comments removed from your report. Your credit report will look better with fewer of those negative comments. Another factor that needs to be considered is the amount of debts hanging round your neck. Too much debt, definitely, spells pending financial crisis and a low credit rating. Lenders will be reluctant to grants loans or credit lines, if your report shows significant debts, even if you have re-paid most of the debts. Too much debt is a sign of financial recklessness, it does a heck of a lot of damage to your credit rating. The ugliest side of the story is that you will be required to pay higher interest rates for loans if your credit is bad, to cover the risk of lending you money. It is wise a idea to keep debts less than 30% of your limits and to pay off debts with the highest interests rates first.

Just as too many accounts will pull down your credit, too few accounts may also be harmful. If you don’t have enough established accounts, your credit may be poorer than it should be. Adding departmental store or gas cards account that are in good standing to your credit report will surely boost your credit standing. Another idea is to get a loan or credit card and buy something you know you can pay for quickly. Re-paying debts on small loans or credit card purchases quickly will speed up your chances of repairing bad credit.

Bad credit is not a thing to get over with in a hurry. It takes time and requires patience. Take your time, clear your debts gradually beginning with those with the highest interests rates. Your seriousness in dealing with past debts could impress lenders and show them you are financially serious and reliable. Whatever you do, remember that you are affecting your financial future.

Get credit in your own name - Whether single, married, separated, or divorced, you are entitled to a credit file in your own name. If your spouse or former spouse had or has bad credit and most credit was in the spouse’s name, it would definitely be advantageous to have your own credit file. Even if debt was joint this could be a wise strategy because by separating the files and insisting that your file not include any of the spouse’s credit, some negative credit could easily disappear.

All that is needed is contacting each of the three credit bureaus and requesting credit in your own name. Then insist that the bureau remove ALL accounts belonging to your spouse.

Know how credit offers are evaluated - When you apply for credit, most often a credit or risk score is assigned to establish your probability to repay the debt. This method is used by applying calculations based upon formats developed by offices like Fair Isaac. But besides credit scores, creditors sometimes evaluate applications using the three “C’s”: Capacity, Collateral, Character.

* Capacity: A creditor wants to understand your ability to repay. But additionally they want to know how much debt you can realistically be expected to pay back. How long have you been on the job? What is the likelihood of advancement? Is your job and industry stable? Are you a secretary or and executive secretary? What is your current debt ratio? What kind of debts do you have? Are they all unsecured such as credit card? Is there secured loans such as car or home? How long have you had these accounts? Do you have a good history of on time payment?

* Collateral: Do you own a home, mutual funds, etc. This area could be crucial in procuring a loan if you have many late payments.

* Character: your character shows through in objective manners such as, how long on the job and how long at your residence. Similarly do you have checking and savings or just checking?

Bolster Your Chances of Approval:

* Always apply in the exact same name. Don’t use a middle initial sometimes and not others. Be consistent.

* Bolster your credit application. If you have negative remarks is there a reason? If so state it VERY briefly. If you are an administrative assistant, don’t say clerk typist.

* Apply for credit when you are most likely to get it. For example apply when employed, have lived someplace for a lengthy time, have not had too many inquiries, etc.

* Apply with creditors with whom you have a history.

Apply Credit Wisdom When You Have Credit:

* Scrutinize pre-approved cards. Many of these can be used for special catalog purchases only and are not accepted by most creditors. Similarly don’t be swept up because it offers rebates or other gimmicks. What is the interest rate, annual fee, grace period. Sometimes the gimmick could be a “good deal”… but sometimes the price might be just too high to pay.

* If you have a card, protect it. For example, normally do not give your number out to a salesman who calls you on the phone. You have no idea who you are talking to unless you placed the call.

* Rather than going over your limit, ask for an increase. Send your creditors a change of address when necessary.

* Once approved for a card, do not go on an ego trip and “stock up” on more cards. There is a great danger in relying solely on credit and running up balances. Guaranteed, they will get out of control. Similarly many creditors will frown on too many credit cards that are unused. You can feel greater power by refusing an application, than by accepting another one. Once you learn to control credit, credit applications will always be available to you.

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 errors.

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 LATE!

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 heights.

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.

Dave Czach has 12 years experience in the mortgage business and a Bachelor’s Degree in Real Estate. He can be reached at http://myLoanHero.com/go.cgi/daveczach.

1) Read the fine print for sneaky default rules. This can be to do with interest rates, late fees etc.

2) Keep your eyes open for changing due dates. They will do this to make you pay late without you knowing, so that will incur a late payment fee to you. If you change card limits the payment fee might be different.

3) Don’t purchase credit card insurance as it is usually an expensive insurance policy. Although it stops payments when you are injured, It is still very dear.

4) Get rid of annual fees. – just call the card company and ask for removal of the fee. Or Threaten that you will cancel their card with them, that should make them do it.

5) Try credit unions for getting cards as they can have better rates.

6) Pay your payments on time. This will make sure you build up your credit file. Missing a payment can cause a dent in your credit file.

7) If you have a late fee for the First time, ask to have it removed. Some credit card companies will do this, Just phone them, it’s worth a try.

8 ) If you have many cards pay them off in minimum payments but Pay off your highest interest cards first to reduce credit card dept. Once that one is paid off then go towards the next highest. This is a good strategy to get rid of your credit card debt, and works well.

9) Don’t pay the minimum payment, but in full each month.

10) If you have checks with your cards use those with care as there might be high balance  transfer fees, which can be high if you are transferring a large some.

 On this blog there will be issues about -Credit repair,
-credit history,
-credit report,
-Bankruptcy,
-CCJ’s,
-money tips
-money saving advice
-Government Grants
- and Much more…Keep reading the blog,

Please feel free to comment on my blog, sharing your views, thanks.

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