Financial Battle Home
Custom Search

Improving Credit Score

Picture of an improved credit score Tired of being rejected by the loan officer because they think your credit isn’t good enough? Sick of getting balance reports on payments that you’ve already paid? Want to re – establish your credit reputation?
Well here are 5 simple ways:

  1. Paying Bills in Advance; Beat the Statement Date, Not the Due Date

    We often wonder why our credit score doesn’t go up though they’ve paid the debt in full and on time. That’s because most of us do not know that we should pay before the statement date and not the due date. Basically, the balance on your statement date is the one that gets reported to the credit bureaus. That means paying before the statement date lowers the utilization ratio, thus increasing your credit score. Always remember that 30% of your score depends on what you owe.

  2. The Beauty of Multiple Payments

    If you use your credit card for everyday expenses, and pay it off by the end of the week rather than paying it off at the end of the month, you’ll be helping your credit score recover much faster because lower balance statements means better credit scoring.

  3. Asking for some slack: Goodwill Deletion

    Basically, this solution involves one simple thing, asking your lender to cut you some slack. If you are an on time payer then miss one payment, you could talk to your lender about this and ask to give a goodwill favor. Though it is hard to believe, lenders will actually do this not once, but lots of times. However, if you are a habitual late payer, well, you know the answer to that.

  4. Bribe the Lender… With Payment!

    Actually this will help you a lot in boosting your credit scores. Let’s say you have 3 months in debt that you haven’t paid off yet, the lenders will actually wipe off the balance report in exchange for payment of the balance. This will definitely improve your credit score as long as you pay off your current debt.

  5. Protecting yourself in a Short Sale

    A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by Liens against the property and the property owner cannot afford to repay the liens' full amounts, whereby the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt and is often used as an alternative to Foreclosure because it mitigates additional fees and costs to both the creditor and borrower.

    Let’s say you owe $200,000 for buying a house and you decided to sell it for $150,000, which means you’ll be paying off the mortgage $50,000 less than the full amount. The lender will then report that you have a balance owed of $50,000. The key in a short sale is that you can mitigate the damage slightly on your credit score by asking the lender not to report a balance owed. Why do this? It’s because lenders tend to lose interest in their former customers after the short sale is made.