Can I Really Fix my Credit Score?

As a credit attorney, I am often asked "can I really fix my credit score?" But what the person really wants to know is "how can I fix my credit scores?" Despite what the credit bureaus would lead you to believe, it is possible to fix your credit scores. You can do so in several ways.

You can fix your credit scores by correcting any inaccurate, outdated, and unverifiable credit items being reported. By cleaning up the negative items that are reporting inaccurately in violation of the Fair Credit Reporting Act, you can fix your credit scores.

In our book entitled "Winning the Credit Game" my wife Marti and I outline a step by step approach to disputing short sales, collection accounts, tax liens, auto repossessions, and bankruptcies. We have also established a book of 90+ credit dispute letters that will assist you in fighting negatives or inaccurate information on your credit reports.

However, in addition to disputing inaccurate, outdated, and unverifiable credit items I also want to share another rarely publicized approach to answering the question "how can I fix my credit scores?" Here it is...develop a credit score friendly lifestyle by design.

In other words, by purposely changing how you handle your credit accounts and debt payments you can fix your credit scores. Here's how it works...

Your FICO credit scores are based upon the information contained in your credit reports. FICO groups you into one of 10 credit score cards with other consumers that have similar credit report information. So if you have a few collection accounts on your credit report you will more than likely be grouped with other consumers that have collection accounts reporting.

It's similar to a scorecard used for golf or bowling. You play with other players at similar levels. As you play, you get so many points based upon how you play the game. At the end, your score is tallied up.

But in this case the FICO formula does the scoring for you based upon the information contained in your credit reports as compared to other consumers. It adds or deducts a certain number of points ("weight") based upon the answers ("variables") to various questions ("characteristics") about information contained in your credit report.

For example, one question may be "how many credit inquiries are in your credit reports for the last 2 years?" or "how many late payments does it show?"

You will either get more or less points depending upon the answers from the info contained in your credit reports. So basically, every credit report is broken down into characteristics, variables and weights. Once all of the points are added or deducted, FICO calculates your final credit score.

The key is to purposefully manage your credit accounts and debt payments in such a way as to fix your credit scores. It's like bowling more strikes on purpose because you get more points for strikes than spares. Also, it's important to avoid the gutter balls!

Monika Nagy (a FICO Certified Credit Analyst) wrote a book entitled "Give yourself the credit you deserve", which goes into more detail about how to develop a more credit score friendly lifestyle by design (i.e. purposely change how you handle your credit accounts and debt payments to maximize your credit scores).

So you see, the answer to the question "can I fix my credit scores?" is absolutely YES!




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