Everyone wants a good credit score. So much of what we do financially is dependent on this FICO score on our credit report. Of course it’s important to try to make payments on time, etc. but this isn’t always easy to do. Emergencies come up. You can be the best person in the world and responsible too and you try to do things right. But there are secrets in the credit reporting field.

But you may just find yourself short on cash and try as you may just have to miss a payment or make a late payment or you’re charged for something you did not buy or returned or something else. Many times this is through no fault of your own.

If you don’t have a current free annual credit report you can get a free credit report instantly online. After you have your credit report in hand, look through the report and find all the negative marks or bad items. Make a list. Hopefully it’s short. Maybe you only have one or two. If you have several then list them with the highest amount down to the lowest.

This is an easy lesson in how to repair your credit. We’re going to tackle the lowest amounts first. And here’s the secret that many people do not know. If you write a letter to the three credit report companies or bureaus and dispute any of the amounts, the credit bureaus contact the creditors. If the amounts are small the creditor may not even bother to answer the credit bureaus.

The credit bureau has to remove the item if the creditor hasn’t responded within a certain length of time.

Don’t think that writing the letter is hard to do. Sit down early in the morning when you are fresh or at a time when you have more energy. Just simply address three envelopes to the three credit bureaus. They are Experian, TransUnion and Equifax.

You can easily get their address from the free credit report or online. Just explain that you found some errors on your credit report that you want to dispute. Make it short.

Enclose any relevant documentation, if you have any, which shows there is an error or that you want to dispute. This would include any cancelled checks, online payment confirmations, etc. Ask for a correction. Then say something like you want to keep a good standing and value an accurate and good credit history.

Also say something like a good credit rating and credit score is important to me. Make sure to name the creditor and the date of the error. Keep a nice tone to the letter.

Then close with a ‘thank you’ paragraph. Something like “Thank you for attending to my letter and this matter so I can maintain a good credit history. If possible let me know that my file has been reviewed and send me a copy of the corrected credit report.”

If you review your free credit report often you can catch small errors and fix your credit report before too much time passes. This is a little known secret and if the creditor amount is small enough you should be able to easily get it removed. It’s worth the small effort to raise your credit score. You CAN fix it yourself knowing this secret! There are many other credit report secrets!

Obtaining credit cards after bankruptcy is not as difficult as most people believe. While bankruptcy does practically destroy your credit rating, this change to that mysterious three digit number used by lenders does not last for ever.

And while bankruptcy appears in your credit report for (up to) ten years, even before it is dropped from the report, you may still qualify for loans and credit cards without predatory rates and terms.

Adopting good credit practices, such as timely payment and using only a small portion of your credit card limit, can help reduce the impact of bankruptcy and repair you credit.

One of the most important things you can do when obtaining credit cards after bankruptcy is to acquire a credit report. All too often, some old debts and unpaid loans are still present as delinquent accounts on credit reports after bankruptcy. If this is the case for you, contact the credit agencies immediately to correct the error. Be prepared with your personal information, so they can verify the bankruptcy and remove those negative entries.

When you apply for credit cards after bankruptcy, be careful and selective. Avoid so-called “predatory” or “maximum rate” lenders who may offer extensive and attractive credit, but can charge interest over twenty percent.

Avoid filing too many credit applications at once, which can further damage your already lowered and delicate credit rating. Large numbers of credit applications and open credit accounts for a bankrupt person can send red flags to lenders about the creditworthiness of the applicant.

It may be a wise choice to start with a “secured” credit card, where the credit limit is backed by money deposited in a bank account. This allows you to build up a positive credit history, while providing reassurance to the lender that the debt will be repaid.

After receiving your post-bankruptcy credit cards, develop some good habits. Avoid using your full limit. Try to make modest purchases with the card on a regular basis. Pay your credit card bill on time. When making payments, try to almost in full but leave a small balance (about 20% of limit) in order to keep it reported. All of these things can drastically improve your creditworthiness.

Obtaining credit cards after bankruptcy is possible and can be an excellent tool for rebuilding your financial reputation. With a little bit of caution and good credit habits, you can see your credit rating in great shape and your bankruptcy removed from your credit reports within a few years.

700 to 850 - Excellent or Very Good Credit
680 to 699 - Good Credit
620 to 679 - Okay or Average Credit
580 to 619 - Low Credit
500 to 580 - Poor Credit
300 to 499 - Bad Credit
Things such as late credit card payments, or other bill payments, have a very negative impact on your score. For example, someone with an average good credit rating of 700, can increase their score by as much as 20-25 points, simply by making all of their monthly bill payments on time. Increasing debts can have a negative affect your credit score. By maxing out all of your credit cards you can lower your credit score by as much as 60 to 100 points.

By keeping an active credit card, and making all of your monthly payment on time, you are actually helping your credit more than if you did not have a credit card at all. This is because the FICO credit scoring system works to show that whether you are a responsible borrower, who is not in over their head.

A major benefit to checking your FICO credit score is to check for errors and out-of-date or inaccurate information. Detecting other things, such as identity theft and fraud, are other excellent reasons to check your FICO credit score and credit report. If you find any errors or inaccurate information, you can notify the credit reporting agency to remove them, boosting your overall credit score.

How Do I Check My FICO Score and Credit Report?