Most of your credit score is made up of your payment history.
You need a payment history which is able to meet deadlines and is never late.
It is essential to work on all areas of your credit score including credit history length, debt to limit ratio, types of credit, and inquiries.
The ideal thing you can always do to obtain good credit is to pay on time every time.
When you apply for a mortgage, your lender will ask for a credit report from a credit reporting company.
This is usually a local or regional company.
This company pulls together a credit report electronically.
It usually comes from one or more of the major repositories, but it can come from several sources.
Along with the information, the local credit reporting company receives a numerical score.
The score represents a combination of the borrower's credit history, employment, ability to save and other related information.
This is done because the lending industry is moving toward "risk-based" pricing.
This means that the higher one's credit scores, the less paper they will have to provide to prove that they are creditworthy AND the interest rate and/or fees a borrower pays will be based on the level of their scores.
This system will be great for those who maintain good credit.
It's one way that good credit risks can be rewarded.
In the past year the industry has already seen a dramatic reduction in paperwork requirements and "risk-based" pricing (rates and fees) has become the norm.
Consumers working on their credit reports state that their letters are ignored by the credit bureaus.
It is believed the credit bureaus do this purposely to make it difficult for consumers.
Sending your dispute letter by CERTIFIED RETURN RECEIPT MAIL will improve your chance of a response.
This should not be done with the first attempt.
Keep a record of when you sent the dispute letters and what date you should expect a response.
If you have received no answer to your dispute after a month, then send the credit bureau with a certified return receipt letter, for an updated credit report demanding the disputed items be deleted.
If the bureaus do not reply within the 30 days, it must be that the information could not be proven.
According to the Fair Credit Reporting Act, the items must be immediately deleted.
Consumers get rid of negative marks on credit reports simply by going through this process of disputing items on a regular basis.
Since many creditors won't take the time to defend the negative item, you will be able to "repair" your credit through default by your creditor not responding to the credit bureaus request to prove the item.
This often occurs because the creditors do not always have time to deal with a bothersome piece of paperwork and that is your advantage.
Those having trouble with credit might find it difficult to get out.
However, there are many ways to repair your credit and one of them includes using a credit card.
Those with bad credit histories can still get credit cards from certain organizations that specialize in giving credit to those who are in debt.
These cards are known as secured credit cards.
Getting these cards is simple and negative credit histories don't make any difference.