Your Credit Score: How to Fix, Improve, and Protect the 3-Digit Number that Shapes Your Financial Future
Do you need to improve your credit score so that you can achieve the goals you have set for yourself? Here are three strategies that you can use to improve your credit!
Paying for Account Deletion
Lowering your credit scores can be as simple as paying off your collection account which sounds a bit confusing.
The reason is accounts that have recent activity actually influence your scores more so than ones that have had no recent activity.
The date of your last activity is updated when an account has been paid in full, which means older unpaid collections affect your scores to a lesser extent than a recently paid collection.
Your will want to have an agreement between the lender and you that once they have received the payment in full, the account is deleted completely from your credit history file.
This is known as “Pay for Delete.”
Debt Validation
If disputing has not been successful with credit bureaus, then debt validation is the next step in the process.
In fact, this is one of the most effective methods of cleaning up credit report issues. This requires a collection agency to have proof that you owe money.
Requesting a copy of the original contract and a payment account history showing how they arrived at the amount of money you owe as well as a copy of the contract from the original creditor and additionally any other documentation which will show they have ownership of the debt.
Any failure to provide you with this documentation can mean they no longer have the option of being able to report your account to the credit bureaus.
Student Loan Rehabilitation
Student loan rehabilitation is not a fast process. But for students loans that have been defaulted on, it is one of the best solutions.
It is an especially important strategy for those desiring to go to college after bankruptcy. When you owe the Federal government, they are not hesitant when it comes to wanting their money, especially if it pertains to defaulted student loans, but they are willing to work out a solution to assist you in bringing the account up to a good standing.
This program can vary somewhat depending on the type of loan. It is required that you make at least 10 – 12 payments voluntarily and on a current basis such as not having your wages garnished. Once you have done this, the loan will now be considered “rehabilitated” and the status current.
