I’m sorry to report that fast credit repair is a bit of a myth; truth is Fast Credit Repair is a whole lot sexier than the more honest Slow Credit Repair. That’s not to say that you can’t take some quick easy steps to start improving your credit today, only that these steps will take some time to work and yield positive results. I can’t tell you exactly how much time it will take to raise your credit score, because each case is different, but I can tell you that if you follow these steps you will dramatically improve your credit rating. This may not be the fast credit repair you were hoping for, but it’s the only thing that works.
FICO rates you credit score on 5 different criteria, weighing each according to what is considered to be the most important. This pie chart is from the FICO website and shows you exactly what your credit score is based on:
So, you can see that the areas where you would get the biggest bang for your buck are in the areas of payment history and amounts owed. These two areas alone account for a whopping 65% of your credit score so this is a good place to start your credit repair plan.
The Two Main Places to Start Your Credit Repair:
Payment History – From now on, you need to pay every single bill on time. Even if you are a “little late” this can have a bad effect on your credit, so you need to resolve to start paying all your bills in a timely manner or suffer the consequences.
Amounts Owed – You need to seriously reduce this amount. This is the amount of overall debt you carry; it includes mortgages, car loans, student loans, credit cards, business loans, and personal loans. Another important part of this Amounts Owed section is the amount of credit you are using versus the amount of credit you have available. If you have all your credit cards maxed out, this will reflect very poorly on your overall credit score, so you need to work on reducing your debt.
This may not be the article on fast credit repair that you were hoping for, but anyone selling fast credit repair is selling false hope. You can improve your credit score, you can get better loan rates, and you can qualify to buy a home, but it won’t be fast, it will take time.
