How To Clear Old Debts Increase Credit Score

Credit Report Scores - Computing Then

Your credit report scores are based on factors that appear in your credit reports. Credit report scores are computed based on a model developed by Fair Isaac Corporation and are typically know as FICO scores. They help lenders determine the risk of extending credit to prospective or existing borrowers.

The following general factors are considered:

• Bill payment history -- 35% of your FICO score (Good: on time and for the full amount)
• Debt relative to your credit limit -- 30% of your FICO score (Good: few installment loans, Bad: many debts, maxed out credit cards)
• Length of credit history -- 15% of your FICO score (Best, entire credit history of 7 years shows no negative reports)
• Types of credit -- 10% of your FICO score (Good: mortgage, car loans, Bad: high interest credit card debt)
• New credit -- 10% of your FICO score (Bad: many rejected applications, new accounts, or credit inquiries)

All these factors are considered in computing your credit score.

Your credit report contains personal information, credit payment history, credit inquiries made when applying for credit, collections, as well as public record information from courts such as backruptcies, foreclosures, wage attachments, liens and judgments.

Cleaning Up Your Credit Report

A good score helps you get the best loans. The loan officer will be glad to see you because you will:

• Qualify for a larger loan
• Get a loan faster
• Get the best interest rates.

There are basically three ways to clean up your credit report.

• Dispute You can dispute items on your credit report. This may or may not remove the item from your report.
• Negotiate Arrange with your creditor to pay off the debt in exchange for them requesting the credit bureaus to remove the negative item.
• Pay and Wait Pay off the debt and wait (up to 7 years) for the item to be dropped.

In addition, a bankruptcy can remove negative items, but the bankruptcy can remain on your report for 10 years.

For a Powerful One-Time Upgrade of Your Credit Report

Lexington Law is a Law Firm specializing in credit report repair. They have helped over 80,000 Americans improve their credit scores by removing inaccurate, misleading, or unverifiable information from their credit reports.

"It's amazing what a letter from an attorney can do!"

The Lexington Law Firm is member of the online BBB and offers consumers a performance warrantee. From bankruptcies to charge-offs to tax liens, Lexington Law Firm has challenged virtually every credit problem under the sun and deleted over 600,000 such items to date.

Lexington Law's service is backed by a warranty which entitles you to some or all of your money back if enough disputed items aren’t deleted. Put simply, they don’t believe you should have to pay for ineffective service. "If we can’t deliver, you’ll be reimbursed."

Quarterly Credit Report Access Plus Credit Monitoring

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  Your credit score depends, in part, on the amount of debt you have. Improving your debt to income ratio will greatly help improve your credit score.

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