Raise Your Credit Score in 30 Days

Raise Your Credit Score in 30 Days

Credit is a Game that is Easy to Win…As Long as You Know the Rules

By Erica Barton

It’s happened to so many people…the dreaded credit rejection letter. You apply for a credit card at a department store or online and suddenly you’re told that you will “get a response in the mail.” Full of dread, you wait the customary seven to ten days just to have your heart ripped out of your chest when you finally do get that notice.

“After having reviewed your credit, we are unable to approve your application due to…”

What do you do now? You were thinking of buying a car or maybe even a house. You were counting on your credit score and now you are in the land of credit rejects. How can you possibly bounce back? Can you still get that loan? Are you going to get screwed by the interest rate? Or will you just get rejected again? You are at a complete loss and the only thing you know is that credit is a nightmare.

Actually, it’s quite the opposite. Credit is like a basketball game with your score constantly changing. You can dictate that score and get control of your credit. The key to raising that credit score is to destroy the offense and take the easy shots that give you the quick points. All you need to know are the rules of the game. Once you know what they are and you’ve mastered them, you can achieve that sense of credit worthiness again. If you follow the rules below, you can bring your score up as much as 200 points in just 30 days.

Rule # 1: Don’t be afraid of the scoreboard.

Begin by pulling a 3-in-1 Credit Report with FICO scores from one of the three credit agencies (Transunion,
Equifax
and
Experian). Although it is true that you can get your credit report for free every 12 months at websites like
Free Credit Report, FICO scores are not usually included and the scores are very important. Just like in a basketball game, you need to know the score to know if you are winning. Therefore, it is an excellent idea to pay the extra charge and purchase the FICO scores for all three reports. It is also a good idea to pay to have the 3-in-1 Credit Report pulled directly from one of the TRW company websites as you will be able to make disputes online directly for all three companies at one of these sites. (Transunion
is especially easy to navigate and make disputes with.)

Your credit report is divided into four sections. The first section would be like your player statistics. This includes your name, address, place of employment, etcetera. The second section is the score for the “Guest Team.” It is a list of all items that are hurting your score such as late payments, accounts sent to collections and collection agencies. The third section is your fan base. It is a list of all credit accounts that are in good standing. The fourth and final section would be the referees, or all of the people who are watching you so closely and making judgment calls against you and your credit. This is the Inquiry Section, and the more inquiries you have, the more your credit can suffer. Inquiries fall off your report after 12 months, so try to keep credit applications to a minimum when you are making plans for a big purchase.

Rule # 2: Don’t let the other team psych you out.

Think of your creditors on your credit report as opposing players. Although it may be disheartening to see a bunch of negative items on your reports and you may want to give up before even taking a shot, just keep in mind that negative items can be changed. Those players can be defeated.

Once you have your credit report on the screen, print it out. You are going to need to go over this report with a fine tooth comb as you will be looking for every little disputable item whether or not these items are your fault.

Rule # 3: Demolish the opposition one player at a time.

According to
My FICO, 35% of your score is based on credit history, so the next step is to identify all of the players on the opposite team who are scoring off you. These players are companies that say you have not paid in 30 days, 60 days, 90 days or 120+ days. Highlight these companies for quick reference later in the game.

Rule # 4: If the opposing team does not have the ball, they do not get to score.

If a company is unable to collect from you, they will ding your credit, then “pass” your delinquent account to a collection agency just like a basketball being passed between players. That collection agency will also ding your credit and may “pass” your account onto another collection agency, and so on and so on. The general rule is just like in basketball. If a company/player does not have your account (a.k.a. the ball), they do not get to put points on the board. Therefore, if a collection agency does not have your account, you can have them removed from your TRW thereby improving your score. Highlight all of the collection agencies on your TRW’s. Do not highlight accounts that are still open since you will want to “repair” these negatives instead of removing them.

Rule # 5: Build a good Offense.

Now that you have highlighted all of the negative items on your credit report, you are ready to begin. The next step is to “dispute” all negative items that you’ve highlighted. Online is easiest with the TRW company you pulled your credit report from, but you can also do this by mail or by phone. Dispute all items that are 30 days late or more by simply stating, “This account was never late.” Remember to reference the account number listed and the creditor’s name.

Next, dispute all collection agencies on your credit report by saying “This account is not mine.” Again, reference the account number and the creditor listed on your TRW.

Rule # 6: Win by default if you can.

Once you have disputed the negative items on your credit report, the TRW companies will begin an “investigation.” Creditors have 30 days to respond to any disputes that you make during the investigation period. If they do not respond, the bad points are taken off the scoreboard (i.e., the negative items are removed from your TRWs or changed). Often, if you have paid off your balance and are in good standing with a creditor, a disputed creditor will not bother to contest the dispute you are making. This will automatically have them removed from your account allowing you to win by default. The ones that do respond are the ones you may have to deal with over the phone or in writing.

Rule # 7:
Create an awesome Defense.

Once the 30-day investigation period is over, the TRW companies will contact you by snail mail or email as to the results of your investigation. You will see a new temporary section on your scoreboard that lists all changes the investigation determined. If some of the items you disputed were not removed, consider disputing them again, this time with a new game plan. The game plan will be as follows:

1. If you are in good standing with a creditor, consider contacting them and letting them know that you are trying to clean up your credit. Ask them if they can make a note in your account that you were never late. Also offer to bring the account current if you can afford too. You can dispute these items without contacting your credit company, but you have a better chance of increasing your score if you get the other team on your side.
2. Contact any collection agencies that were not deleted from your TRW. Politely ask them which company they are trying to collect for and what amount would they be willing to settle for. Often, collection agencies will settle previous debts for as little as 30% of what you originally owed. Since the law only allows them to take three postdated checks, they will take the settlement amount and split it into three monthly payments. In such a fashion, you could settle a $1,000 debt for as little as $300 with three payments of $100, and that $1,000 debt will be dismissed forever. Just remember… it is very important to get it in writing before you make the payments. If you do not get it in writing, they can sell that debt to another collection agency and you have no proof that it was settled.
3. Any disputed creditors that were not removed, dispute them again. This time, say that the item “was paid as agreed upon.” If it is not disputed, the item will be changed from a negative to a positive, thereby increasing your score.
4. Lastly, try again disputing the items right away or in six months. It is a good idea to do this at least once a year to make sure that your TRW has the items on it that you want it to have. If you do not do this regularly, you are going into the game blind and you will lose.

Now that you know the rules, you are prepared for the best game of your life. Just remember, you are the coach and you make the calls. You do not need to involve an outside person to do this for you. Save yourself the headache and the money, and get in the game.