There are many factors that determine the length of time it takes to improve a FICO score. An individual with a few late payments and moderately high credit card debt will have a much easier time repairing credit than someone who has recently filed bankruptcy and been through a foreclosure. Start working today to improve your score. The sooner you start, the sooner you will achieve a desirable credit score.
Get a current credit report
It may not be pleasant, but until you know the facts of your credit report you cannot effectively take action to improve your score. The most reliable source for an annual free credit report is the Federal Trade Commission. If you don't qualify for a free report, contact the FICO Website. This report will not be free, but the information is necessary. The purchase of a credit report from FICO will include access to online education.
Focus on the negative to get positve results
The surest way to improve your FICO score is to eliminate the negative areas first. If there are several negative items on your report, start with the worst first. If you are overwhelmed with credit card debt, the worst thing you can do is avoid your creditors. Contact the credit card companies and arrange a payment plan that is within your budget, and stick to it. Don't make any new purchases on your credit cards. If you don't have the cash, don't buy it. Careless buying behavior will surely contribute to a low credit score.
Ask creditors to remove bad reports
Create one template letter to request removal of bad reports. By changing a few details you will be able to customize the letter to specific creditors. Get your list of creditors that show negative information and write each of them. Maybe you have 10 negative reports, maybe 100. Don't think about the number, just get started. If your account is current, creditors are more likely to grant your request. However, include all creditors, even the ones where your payments are in arrears. These creditors will not grant your first request, but six months of making timely payments may sway them. Submit a second request at the end of six months demonstrating how you have changed with regard to managing your money. Save all your written requests. Keep a list of creditors so you can cross the successes off your list. It will feel like a small but significant victory each time you draw a line through a creditor's name.
Pay all your bills on time
Put yourself on a budget, and pay all your bills on time. If current monthly payments exceed your ability to pay, contact creditors and ask for a temporary reduction in your monthly payments. Don't lose focus on eliminating some of your debt. Be strategic with your payments. You probably can't pay off a huge credit card debt, but it may be possible to eliminate department store debt. Once small debts are paid in full, you can channel those $25 to $50 monthly payments toward your bigger debt.
Live within your budget
Granted, this is easier said than done. Except for a very select group of people, money is a limited resource. Break the habits that earned you a poor credit score in the first place. When you go out to dinner, pay for it with cash or use a debit card. If you have to buy a gift, pay for it with cash. You will probably spend less money than if you used a credit card. The great thing about cash is that you will never have to pay any interest on cash purchases. Break the habit of spending money you don't have. It is an easy trap to fall into, but climbing out of that trap can be very difficult.
You will see progress
No one can say exactly how many months it will take to improve your FICO score. However, by following these steps it is safe to say that you will see some improvement in six months. Keep following these steps, and within one year your score will show real improvement. Continue these habits for life and you will not have to worry about improving your FICO score in the future. An excellent resource for creating a spending plan for life is MyMoney.Gov. The website includes tools and resources on how to manage debt and credit. Victory over your FICO score may not be just around the corner, but rest assured that it can be in your not-to-distant future.
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