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About Credit Repair United

Fastest Way to Increase Your Credit Score

Credit Repair United will show you the fastest ways to raise your credit scores. Have you recently been turned down for a mortgage, loan or credit card? Are you paying too much on your existing loans or credit cards each month? Then, you need to raise your credit scores. Your credit score is one of your most important financial assets. It is a number that is the result of a complicated formula based on many factors. How many factors affect your credit scores is too numerous to list here, but the main ones are:

Score Component

Weight

Payment History

35%

Amounts Owed

30%

Length of Credit History

15%

New Credit

10%

Types of Credit Used

10%

Get your credit reports from the three credit bureaus: Experian, Equifax and TransUnion. Itís best if you have your credit reports mailed to you. But, you can also look at them online. Look them over to see where improvements can be made. One of the fastest ways to improve your scores is to pay down your balances.

Step 1: Pay Down Balances

Debt to credit ratio is your ratio of debt to total available credit you have been extended (revolving accounts only). If you have $8,000 in credit and owe $2,000, your debt to credit ratio is 25%. The following is the formula for determining your debt to credit ratio:

Debt Used ų Available Credit = Debt Load

Lenders mainly make money by charging interest, which is why they are interested in finding out how well you maintain balances and pay over time--your long-term credit worthiness. If your credit card balances are high, it will keep your credit scores low. Paying down your balances is one of the fastest ways to increase your scores. The amount you owe to creditors makes up 30% of your credit score, so itís important to keep those balances down.

"Keep credit purchases under 50% of the credit limit. (If you have a) $5,000 limit -- and you want to buy a $4,000 furniture set -- split the purchase onto two cards," says Cate Williams, vice president of financial literacy at Money Management International.

Step 2: Have Credit Bureaus Remove Mistakes

Did you know that approximately 70% of credit reports contain errors? A single error in a credit report can lower your scores up to 100 points lower than what they actually should be. Credit repair is the process of sending letters to the credit reporting agencies (Experian, Equifax and TransUnion), which dispute errors in your credit file. If you are able to prove that there is an error or that the item canít be validated, the credit bureau has to remove it from your credit report. Credit repair helps raise your FICO credit scores, and itís legal.

The Federal Trade Commission (FTC) says, "The law allows you to ask for an investigation of information in your file that you dispute as inaccurate or incomplete." They're referring to the Fair Credit Reporting Act (FCRA). The FTC also says, "There is no requirement that reporting agencies report information for the full seven years--they can delete adverse information whenever they choose before the seven year period." (FTC Official Staff Commentary ß605 item 4.)