There are different ways to clean credit reports. Most of the 35 million Americans with less than perfect credit have chosen the mainstream path of credit repair-”slow but steady wins the race”. Careful budget planning, financial discipline, certain lifestyle changes and perseverance are the major factors in this long term approach to credit repair. On the other hand, a small percentage of Americans have found out that fixing credit doesn’t have to be that hard. Credit knowledge and thinking outside the credit box are the only factors needed for a fast credit repair. Here are 3 tips that will help you understand how fast credit repair works.

1 The benefits of “do it yourself credit repair”.

Most credit consolidating agencies will charge you an arm and a leg for things that you can do yourself if you had enough credit KNOWLEDGE. How is the credit score calculated? What are the most crucial factors in your FICO score? Why does paying off old collections can sometimes hurt your credit? How can negotiation help you delete items from your account? What is the most beneficial balance/limit ratio on your credit cards? How can you prolong your credit history? The answers to such questions can give you some clue about the inner workings of the credit system. The more you know, the better your chances to raise your credit fast.

2 Dispute your way to a better credit.

Statistics shows that more than 40 % of the credit reports contain some type of erroneous information. Out of date information includes adverse info that is more than 7 years old, bankruptcies reported more than 10 years after the date of the last activity, credit inquiries that are more than 2 years old. Sometimes your debt gets sold to various collection agencies and this may be illegally reposted to your account as new bad debt on the sale date of the debt to the collector. Many reports also contain incorrect info-inaccurate personal data (name, date of birth, SSN, employment info), accounts that are not yours, lawsuits in which you were not involved, incorrect account history, closed accounts listed as open and so on. Go through all negative items in your report and look for any type of erroneous info. The next step is to start disputing. Request proof of claims from the companies reporting your info to the credit bureaus. If the companies can no longer verify it, then the credit bureau must remove the negative item from your report.

3 Familiarize yourself with the paradoxes in the credit system.

The credit system is rife with paradoxes. A one time late payments can bring more damage to your score than several old collection accounts. A paid collection can sometimes lower your FICO instead of raising it. Negotiating with credit bureaus and collectors and getting them to delete items from your account can be far more beneficial than simply paying your debt in full. It’s vital that you learn to “winnow the chaff away from the grain” and identify the factors that matter the most to the credit bureaus.

There are many little known secrets and loopholes in the credit system that will help you clean credit reports. The only requirement is to start thinking outside the credit box.

Author: Irena Bocheva
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