Credit Repair Secrets of the Ultra Wealthy

You don’t need a credit repair guide to reveal credit repair secrets to you. The majority of details surrounding how your credit score is determined is fairly straight forward. If you just remember that the credit score is a measure of how safe you are to the lender, you just need to think like a lender to improve your score.

Credit Repair Secrets #1 – Credit Issues are Time Weighted

What you are doing with your credit today is of much more concern to lenders than what you did in the past. In fact the credit reports don’t even look back further than seven years. However, going back that far isn’t that important. You need to take care of the here and now first. If there is any debt you are currently past due on, you need to clear that up first and get all of your account balances current as soon as possible.

Credit Repair Secrets #2 – Your Income Has No Bearing on Your Credit Score

Some of the credit repair tips you’ll read online or elsewhere would have you believe that factors like income or even gender, race, or location have any bearing on your credit score. This is absolutely not true, in fact it is illegal. Individual lenders may put this in consideration with your credit score, but your credit report by itself does not track these factors in any way. Making more money is only good if you’re using the extra money to pay down debt.

Credit Repair Secrets #3 – Applying for More Credit Doesn’t Help Your Score

A few credit repair guides will say the best credit repair secrets involve applying for lots of credit to increase your overall available credit, since having more credit would reducing your debt to available credit ratio. This is not an accurate tip anymore because now the rating agencies will put a high weighting on any new credit request. Also, any individual who has a house or large car purchase will have so much in fixed debt, that any additional revolving credit increase won’t change the percentage that much after all.

Credit Repair Secrets #4 – Default on Loans to Settle with Them

This is one step that many credit repair services companies use. They tell you to default on your loans, so that once you are seriously past due, it easier for them to settle with the creditors. After you settle, theoretically, your debt will show paid as agreed on your credit report. This is a very dangerous idea, and will cause long term damage to your credit report. Lenders do not approve of this type of action, and remember, anything the lender hates is bad for your credit score.