Are you trying to fix bad credit? It’s not as bad as you think. Many will look at their credit report and lose hope, especially those middle-aged consumers who believe it will take them years to fix bad credit. This isn’t true. In 30 days you could have several good accounts (known as trade lines or tradelines) on your credit report and on the path to a high FICO credit score.
So don’t get distracted by the headlines. Instead look at what’s going on in the specific city and neighborhoods that you are interested in. And then focus on your own personal circumstances. How good do you feel about your employment Primary Tradelines situation and your finances. Not the national news.
By the way just where do I get these numbers? Heck, I make em up! Seriously though, I sample 10-15 of the top Wholesale Lenders to arrive at my rate quotes.
Certain types of inquiries can be harmful to a score, whereas others have no effect at all. Once you’ve determined which ones are hurting your score, you can devise a strategy to get them removed. Always bear in mind that having a low number of legitimate inquiries, a few within the proceeding 12 months, will have little impact on a score. If there are more pressing matters that are significantly weighing down a score, you should focus on removing those Seasoned Tradelines or public records first. In addition, since it usually takes several months to remove any offending data from a credit report, simply avoiding applying for new credit during this period will make any existing inquiries weigh even less.
Unsecured debt should never be paid off through a debt consolidation loan. With a loan, you have just moved the debt from one place to another and now it is secured with your home. In your current situation, if you don’t pay your unsecured debt about the worst thing that can happen is you could be sued by your lenders and they can put negative entries on your primary tradelines, but you will still have your home.
If seeking to add credit, ask your card company to increase your credit limit. The best place to increase your credit lines, aside from getting a new card, is to extend your line on an old account with a good long history. Make sure they report the credit amount increase to the bureaus accurately.
This is the biggest myth and mostly fueled by the reporting bureaus who does not want to deal with consumer disputes. It is also attacked by large corporate banks who would rather make obscene profits by charging people with low scores higher interest rates.