Steps Anyone Can Use to Improve a Credit Score By Teddy Danfield

First of all there are hundreds of ways to improve your credit score. Today I want to review some easy things anyone can do to improve their credit score. If you already have a score over 800 their isn't anywhere for you to go except down. I consider anyone with a score over 800 as Platinum credit. You will always be approved for any home, car or credit card you apply for within reason.

Now for the rest of us who don't have a score in the 800 or even 700 range: What can we do?

Well the most obvious is to get current on your bills if your behind. Then once you are current stay current. Recent late payments will hurt your score more than a late payment two years ago. The worst thing you can do is miss a payment or two in the last 60 days and apply for a loan today. Now you may get an approval, but it may not have the best terms.

Another way to improve your credit score is not apply for a lot for a lot of credit cards in a 30 to 60 day time period. If you were declined today for say poor pay history. This probably will not change in 30 days or even 60 days. So you are just hurting your score by going from lender to lender attempting to get a loan or credit card. The reason is that inquiries do hurt your credit score even you are or are not approved.

The best thing to do when you are declined for a loan is to find out reason and if it has to do with information in your credit report is to get your credit report. You want to make sure the information is correct and then attempt to fix the reason.

When someone is turned down due to lack of income that has nothing to do with your credit report. This simple means you need to earn more money or pay off some bills. I have had people with good credit scores, but declined due to lack of income. Usually they are asking for too much money or owe too much on their credit cards or other loans to justify approving them for the loan.

Like I said originally there are hundreds of ways to improve your credit score. The most important thing for you to do is concentrate on one or two areas. If you are reading this and you have missed payment is to attempt to get current or contact your lender to see what programs they may have to assist in getting current.

I hope this helps.

About Teddy Danfield. I have worked in the finance field for over 15 years. I want to help people get out of debt or at least pay less in interest charges. Visit my site http://debtstrength.com My new book "How to Beat Banks and Credit Cards At the Money Game" can help you keep more money in your pocket. Stop paying interest to banks and start earning interest.

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Sample Late Payment Explanation Letter By Lyn Collier

When you write a creditor to explain your late payments (mortgage, car, or credit card), the letter should state:why you are late, (see paragraph 1 of the letter below)

• how serious you are about fulfilling your commitment to them (paragraph 2 of the letter below), and

• when you expect to be able to resume full and regular payments, (paragraph 3 of the letter below),
• what you want from them (paragraph 4 of the letter below)
• the financial details of your hardship (paragraph 5 of the letter below)

Below is a sample late payment explanation letter. Change it to describe your own circumstances, but make sure that you enclose copies of financial documents like: checking account statements, tax returns (past two years), all bills from creditors, all late notices, pink slip, anything else that will prove your hardship.

Cindy R. Williams

9 Turnbill Ct.

Anywhere, USA 55555

To: ABC Mortgage

Re: Late Payments; Account # 12345678

Daytime phone number: (555)555-5555

I am writing to inform you of my recent financial hardship. I was laid off from my job at XYZ Company just before Christmas of 2008. I am diligently seeking other employment, but as you know, jobs are scarce in today's economy. I have not found anything yet. Being out of work has caused me to be late on my bills.

I believe in hard work and have never been without a job for more than a few months. Until this unfortunate event, I have maintained a solid payment history with you.

My goal is to pay everything I owe. I take my financial obligations very seriously and plan to continue regular and full payments as soon as I find a job.

I expect my situation to be temporary and would like to discuss loan forbearance. I would also appreciate any suggestions you might have that would help me get back on track.

Please find the enclosed spreadsheet of my monthly expenses, as well as copies of financial documents, my pink slip from XYZ Co, and late notices I have received during my financial setback. I'm sending these to show that I am indeed experiencing financial hardship. This letter and all documents attached are true and accurate to the best of my knowledge.

Thank you for your time. I hope to hear from you soon.

Sincerely,

Signature/Date

Forbearance is an agreement by a creditor to reduce or delay payments for a specified period of time. Interest accrues during forbearance and will increase your loan amount. The good thing is that you will not have to pay late fees and penalties. There is no negative affect on your credit either.

Learn from Lyn Collier's years of Real Estate experience.

Read simple, to-the-point articles about avoiding costly mistakes and how to get the best loan modification at http://www.e-home-mortgage-loans.com/index.html

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