Fixing a Credit Score - 3 Secrets That Helped Others Raise Credit Scores Fast

No matter whether your credit score is severely damaged or needs just a little "cosmetic" help, fixing credit score is always a good idea. The 3 digit FICO determines whether you'll get approved for a favorable mortgage or auto loan. But the importance of your credit score goes beyond shopping. All types of creditors, employers, landlords and insurers are pulling your credit file in order to decide the fate of your application. The growing significance of your FICO makes having a good credit a simple necessity.

Here are 3 popular myths about credit repair which prevent most people from ever trying to raise credit score.

Myth # 1 Credit repair takes a long time.

You've probably heard it a million times before-it takes just one wrong step to damage a good credit report, yet it takes years to repair it. Not always true! There are certain items in your credit report (bankruptcy chapter 7, foreclosure, repossession) that cannot be changed. You have to wait for the duration of the punishment period (10 years for chapter 7 bankruptcy, 7 years for the other items) in order to clear such accounts from your records. However, every other negative factor in your report can be deleted (collection, legal judgment, late payment, credit inquiry, loan default etc) or positively altered (balance/limit ratio, length of credit history etc). Such changes can bring increase in your credit score within months, weeks and sometimes days (example-the rapid Rescore strategy)

Myth # 2 Credit repair requires financial effort.

The mainstream credit advisers say that the path to a debt free life requires financial sacrifice and certain lifestyle changes. In other words-buckle up and start saving every possible penny in order to pay off your debt. In reality, paying off your debt in full is not necessary. In certain cases it can actually damage your report and lower your FICO. Let's say you have a collection that is more than 2 years old. Paying off that collection will upgrade the account status to current. The bad debt (although now paid) will continue to influence your score adversely. And since the day of last activity has now changed, the collection will stay on your report for additional 7 years. Examples like that show that financial effort is not always necessary. What you should do is settle for 20 % or less of the amount that you actually owe (collections are still making profit out of you) and then promise to pay only if the agency removes the collection from your credit report. When it comes to fixing credit score-do it the smart way, not the hard way.

Myth # 3 Only the credit experts know the loopholes in the credit system.

Anybody can be a credit expert. All you need is knowledge and understanding of how the credit system works. How is your FICO calculated? What are the most detrimental accounts in your credit report? How to dispute mistakes on your report using the Rapid Rescore strategy? How to ask for validation of debt? How to use the provisions of the Fair Credit Reporting Act and the Fair Debt Collection Practices Act? How to delete negative items from your record? In order to outsmart the system, you have to know how it works.

Fixing credit score is not that hard. Credit tricks and little known secrets will take you to the desired destination faster than any long term approach to credit repair. Once you start thinking outside the box, you'll be surprised to find how easy credit repair actually is.