Simple Credit Clean Up Tips

January 21st, 2010 by matt

There are plenty of very simple credit clean up tips and tactics you are able to use to clean up credit reports. If you’re thinking about applying for new credit, then spending a little time getting your finances in order could help your chances of getting your application approved.

While many credit clean up tips have centered on finding and correcting any errors on your credit report, it should be noted that a large percentage of people with bad credit don’t have any erroneous listings. If you happen to find an entry on your report that shouldn’t belong to you or has been listed in error, then you may dispute the entry and have it removed.

A more common and likely cause for a bad credit score is a history of late payments or missed payments on bills and loans. Since your conduct with your financial responsibilities accounts for 35% of your total credit score, this is usually the section that can reduce your score most quickly.

On the other hand, the good news is, this is also the portion of your score that you can use some credit clean up tactics to clean up credit reports rapidly.

Missed Payments and Late Payments

Whenever you have any delinquent accounts showing more than one missed payment, you should find a way to catch up those payments at once. Do whatever it takes to bring those missed payments up to fate, and you will be rewarded with an instant boost to your credit score as each of your creditors reports this favorable activity.

You may also find that your repayment amounts will be reduced because your creditors will no more be able to charge you penalty fees and delinquent rates of interest. This can help your budget at the same time as offering some credit history clean up assistance.

Reduce Outstanding Balances

How many of your existing credit cards are “maxxed” out or have balances at the same level as the available credit limit? Remember that 30% of your total credit score calculations are tied directly to your balances as they relate to your limits form . Reducing them even a little can give you a fast and easy credit score boost.

Raise the money to accomplish this by almost any means, including having a yard sale or finding some unused items in your home to list for sale on eBay. Acquire a part time weekend job to boost your income temporarily.

Beating Your Creditor’s Reporting System

Here’s a quick credit clean up tip. Your creditors report your repayment activity once a month. They base their information on whether you made your minimum payment amount by the due date or not.

Based on this monthly reporting system, it’s possible to beat your creditor’s reporting system and force them to report more positive activity than you’ve actually made and it’s easier than you think.

Take your monthly payment amount and divide it by four. Let’s assume you need to pay $190 per month. Divide that figure by four and your new weekly payment will be $47.50. Pay this amount on the same day every week.

By the end of the month, your creditors will be forced to report extra payment activity, which gives you a quick, easy boost to your score. The smaller amounts are easier to budget for every week as well.

If you’re serious about working on some quick credit clean up tactics, then work on these simple things you are able to do yourself for free. You’ll be helping to clean up your bad credit and you’ll also be building and learning some financially responsible behaviors that will help stop you entering the same situation again in the future.