Fast Credit Repair …..
Is it Possible?
I tell people all of the time that credit repair takes time. It is true. Complete credit restoration does take a while because it usually involved reestablishing good new credit. In fact, I tell most people that they should plan on the process to take a year or two. But, this doesn’t mean that you can’t do things that will have an immediate impact on your credit score. Here are the top 3 things that you can do for fast credit repair.
Get out of debt!
One of the best ways to repair credit fast is to pay off your revolving credit card accounts. This is because 30% of your overall credit score is derived from what is called your credit utilization ratio. This is the ratio between how much credit you have available to you and how much you are actually using. For the best possible score, you want each individual account to be below 25% of the total available credit limit. This will generate a better score than simply getting the total of all accounts below 25%.
Become an Authorized User
FICO 08 finally went into effect in the summer of 2009 after being held up by a legal battle. Many people believe that these new rules put an end to people being able to benefit from becoming an authorized user. This is actually not credit. What it did was regulate how authorized users could be used.
What was happening is that credit repair companies were selling people on the idea that becoming an authorized user was the best way to have fast credit report repair. They were then offering to sell them an authorized user status with a total stranger. To prevent this practice, the new guidelines now stipulate that you can only have a parent or spouse add you as an authorized user.
Dispute Derogatory Information
The Fair Credit Reporting Act gives you the right to dispute any information that you find questionable. There is no law that says that information has to be 100% inaccurate. When you file a credit report dispute, the credit bureaus will give your creditors 30 days in which to respond. If they fail to verify the account as accurate or miss the deadline, the account must be removed from your credit file. The account cannot be added back to your credit file unless you or notified in writing prior to the account returning. If the credit bureaus do this, you can actually sue them in small claims court.
You can use this law to your benefit to initiate fast credit repair! Select two or three items that you feel are impacting your credit file the most and dispute them with each of the three major credit bureaus. Once you get your results back, wait 15 – 20 days and then file another round of disputes.
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