How Do We Increase our Credit Scores and Fico Scores?

[6ftladycop]

There are many websites advertising about click here for instant access to your credit report and scores, however I wanted to ask you guys which ones are credible. Since I have been discharged and closed for almost a year, I wanted to start rebuilding and was told to request a copy of my credit reports again and scores. Is this correct information and if so, which ones do you guys use?

[lrprn]

Once a year you can get one free credit report from each of the three credit agencies from https://www.annualcreditreport.com/cra/index.jsp

Since the Federal Trade Commission recommends them, I'm pretty sure they are trustworthy

[CindyLou]

You can do everything yourself, but if you do not want to take the time, I can reccommend Lexington Law Firm. I used them for a year and was very happy. I had a lot of stuff to dispute on mine, so I let them do it. Call me lazy, but it worked out for me.

But if you do decide to use them you need to be committed (I am saying that in the personal sense...you are not required to sign a contract). It takes time and you will not see results if you do not stick with them for a while. They only dispute a few accts at the time and the speed of the responses depends on how fast you send them your credit reports and any letter you get.

EDIT:: oops, just realized you weren't asking about credit repair, sorry.

As far as credit monitoring, I use transunion all in one montly and love it.

[Flamingo]

Time, no late payments on anything and not too many credit inquiries are the best things to increase credit scores. People think racking up credit immediately after discharge is the best saying you need open credit lines but many people get denied while doing that and accumulate a lot of hard inquiries that stay on reports for two years. Be patient and savvy. Time is on your side.

[Cali]

I agree with Flamingo, but wanted to add to make sure your utilization is low.

[6ftladycop]

So all this stuff you here about a year after bankruptcy we all should have been working on increasing our credit scores and fico scores is a lot of bunk? Now I find that hard to believe, but if you say that we should just wait and be patient and not open any accounts, then I guess thats ok.

[Cali]

You can work on your credit and fico without getting a lot of credit.

I would rather make sure I will be approved for something and take a hit, then to keep applying, get turned down and take hits.

So all this stuff you here about a year after bankruptcy we all should have been working on increasing our credit scores and fico scores is a lot of bunk? Now I find that hard to believe, but if you say that we should just wait and be patient and not open any accounts, then I guess thats ok.

[Boscoe]

No, to increase your credit scores, you need to add positive items (i.e. credit cards, auto loan, etc.) and work to minimize the negative items on your report.

There is no need to wait. Start by ordering your credit reports and disputing anything negative and questionable. Leave any older and/or closed accounts alone, as the history will only help you.

-Pay on time, always always always. NEVER EVER be late.
-Keep your utilization low, ideally under 105 (credit line 5,000, keep balance below 500)
-Let your accounts (open and closed) age as long as possible. the older your oldest account, the better
-Minimize inquiries, as they lower your score too
-Try to get an installment loan in addition to your revolving (credit card) accounts

It will work. Takes some time, but it is worth it.

One more thing: Only the FICO scores are worth anything. You can get them at the FICO website.

[jp2861]

So all this stuff you here about a year after bankruptcy we all should have been working on increasing our credit scores and fico scores is a lot of bunk? Now I find that hard to believe, but if you say that we should just wait and be patient and not open any accounts, then I guess thats ok.

There's really no set time to get it cleaned up. Everyone has different needs. If you don't plan on any major purchases soon, you can take your time. I started working on mine right after I filed and now have Trans Union back up to almost where it was when I filed. They seem to be the easiest to work with.

If you want to raise your scores I would concentrate on the information in your reports and not get so caught up in the FICO / FAKO debacle. Your scores don't have anything to do with your net worth. So if you're not buying a house or new car anytime soon, they don't do much for you. Really not worth paying what they want just for gee wiz knowledge.

On the other hand, getting the reports cleaned up and accurate may be the deciding factor if someone decides to get a credit or store card relatively soon after discharge.

As far as raising scores go, cleaning up the negative stuff, having a mix of credit, retail, gas, signature loans, car loans, mortgage, etc. will look favorable. And like others have said, a history of on-time payments.

Again, it depends on a persons future plans whether or not to jump right into the credit reports or wait a year or two. For some, obtaining a crapload of available credit right away may not be the right choice. For others it may be a necessity for future plans.

[Cali]

I am going to start cleaning up right after our discharge, because I want my reports to be accurate from the start.

[Pumpkin729]

I agree with Flamingo, but wanted to add to make sure your utilization is low.

How do you figure out whats your utilization number??

[jJimmy11111]

You can do everything yourself, but if you do not want to take the time, I can reccommend Lexington Law Firm. I used them for a year and was very happy. I had a lot of stuff to dispute on mine, so I let them do it.

I took your previous recomendation about Lexington Law. I signed up with them a few months ago. THEY ARE A SCAM.

I would suggest to anybody that is considering going down this road, read some of the postings on www.ripoffreport.com about them.

Do some searches on other consumer web sites and read the endless complaints about Lexington Law. I'm just sorry I did'nt check these things out before signing up with them.

[bkdone]

Article today on MSN website...

Here is a story that was posted today at MSN. Here is the link:

http://articles.moneycentral.msn.com/Banking/YourCreditRating/WantedCreditRepairToBuyAHouse.aspx

It briefly discusses FICO scores and how to improve your credit score. No big surprises though...just reaffirms that there are no quick fixes...keep your credit card balances low, and pay on time.

All good reminders for those of us who "hang out" here at this forum...

[2confused]

Credit after bk

My attorney has told me that the best way to improve your credit score is to purchase a new loan for a car and make on time payments. of course, he "knows a guy that can help." This makes me suspicious. Any advise?

[Cali]

Credit utilization is 30% of your credit score.

Example: credit available = $1000, total debt = $500, credit utilization = 50%

How do you figure out whats your utilization number??