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Most consumers are aware that negative items on a credit report can be disputed with the three major credit reporting bureaus. Often, this process can lead to a significant improvement in credit score through deletion of the derogatory items that were lowering the score.

Consolidate Student Loans To achieve excellent credit, however, it's not enough to just remove negative entries. Why? Because a lack of positive payment history is also an obstacle to having good credit. You need to demonstrate a record of on-time payments in order to raise your credit score.

Home Equity Loans In this article I will describe two simple techniques for rapidly ADDING good credit entries to your file.

How Your Credit Score Is Determined As we mentioned earlier, each credit reporting bureau uses unique mathematical formulas to weigh specific credit factors. Below are some of the most common factors used in the calculation of your credit score. Credit History — Long, healthy credit histories are generally viewed favorably. Payment History — Records of late payments on your credit report will negatively impact your credit score.

Home Equity Loan Rates THE CO-SIGNER TECHNIQUE

Bad credit history is a burden, and attaining a better credit score is a huge benefit. At Veracity, we know that your credit history is the means to a financial end. While our credit repair services improve and correct your credit reports and improve your credit score, the end goal is not a number, but a quest for credit power. Your credit gives you the ability to buy a home, get a vehicle loan, or obtain low APR credit cards.

Homeowner Loans All that is necessary to add years of excellent credit history is the love and trust of a friend or family member who has good credit.

How To Improve Your Credit Score If you apply for mortgage finance, you do not know if you will get approved for the loan and what the percentage rate will be. Both of these depend on your credit score. The better you credit score is, the higher your chances of an approval at a low rate. Credit scores are based on the information in an individual's credit report. Lenders use credit scores to evaluate the potential risk posed by lending money to consumers

Equity Loan Rates Credit card companies are always willing to have their best customers add extra cards for family members. By adding your name to one or more of their accounts, they will actually cause a new credit card to be issued in your name. The "catch" is that they will be the co-signer on the account, meaning that they are responsible if you miss payments.

Maintaining Your Credit Report Score While Looking for Work Your credit report score is based, for the most part, your credit history, your payment history, outstanding credit lines, existing accounts, new accounts, and recent inquiries. While there's little you can do about your credit history and recent inquiries, the other four factors are under your control.

Student Consolidation Loans Of course, you never want to risk the credit rating of a friend or family member, so simply have them use their own address on the application for the extra card. That way, the card will be mailed to them, and even though it has your name on it, the card will remain in their possession. They can even cut it up if they want to.

Second Mortgages The simple beauty of this approach is that the new card will show up on your credit report, and normally it will show the opening date of the original card (not just the application date for the extra card), as well as the entire credit history of that card! It's like getting years of good credit added to your file with the stroke of a pen.

Federal Consolidation Loan THE PASSBOOK SAVINGS LOAN TECHNIQUE

Equity Loan The "Passbook Savings Loan Technique" is a great way to add positive payment history to your credit file. It will also give you an excellent credit reference to use for most types of financial applications. This technique does require some cash - at least $500 to $1,000. However, this amount will be held in a savings account as loan collateral, and the total out-of-pocket cost to complete this technique should be well under $50.

Refinancing With Bad Credit Here is the Passbook Savings Loan Technique in detail, so you can see exactly how everything works.

Home Equity Line Of Credit STEP 1 - Locate a Small Bank that Meets Your Requirements

Federal Consolidation I recommend that you work with smaller community banks and not the major chains. The smaller banks are more likely to have the exact type of account that you will need to open, and they are more likely to work with you and be flexible. Savings & Loan institutions and Credit Unions can also be used, provided they meet the requirements. The product you want is called the "Passbook Savings Account," which is basically just a simple savings account. And the type of loan you will take out is a "Passbook Savings Loan." This is the easiest type of loan to get because it is totally secured with your own cash. Most banks are only willing to loan you 85% of the amount you have on deposit, so there is always some reserve money in the account.

Equity Loans Your target bank will be suitable for this method if it meets the following three requirements:

Student Loan Consolidate A. The bank must have a Passbook Savings Account product with NO MONTHLY FEE on balances of $500 to $1,000.

Consolidate Loans B. You must be able to borrow up to 85% of your balance on a 12-month loan schedule. This is typically called a Passbook Savings Loan.

Home Loans Refinancing C. CRITICAL: The bank MUST report activity on this account to the three major credit bureaus (Experian, TransUnion, and Equifax).

Consolidate College Loans If the bank product does not meet these requirements, then do NOT use that bank. There are thousands of small banking institutions throughout the country, so it should be fairly easy for you to find an appropriate one in your local area.

Student Loan Refinance STEP 2 - Open a Passbook Savings Account

Equity Home Go to the bank you've chosen and open a Passbook Savings Account for $1,000 or less---depending on what you have to work with. Take your Passbook home and wait a week or so, because you don't want it to look like you opened the account only for the purpose of taking the loan.

Home Line Of Credit STEP 3 - Obtain a Passbook Savings Loan

Home Equity Poor Credit Return to the bank and ask to see a loan officer. Look your best, be courteous, and explain that you wish to take out a Passbook Savings Loan for $850 (or 85% of whatever amount you actually deposited).

Home Refinance Loans When you take out your loan, your savings account is frozen. However, every time you make a payment you unfreeze an amount equal to your payment, less a few dollars for interest. Be sure to ask that the loan term be for at least one year, with minimum monthly payments. Do not get a simple one-year loan with no payments. This will not benefit you at all, because you are trying to establish a history of payments.

125 Equity Loan You will not be turned down for this type of loan no matter what your previous credit history and in most cases it will not even be checked. If you have bad credit, make sure you tell your loan officer before he or she pulls your credit history. Tell the bank representative you are trying to re-establish your credit and that a good credit rating is very important to you now.

Credit Equity Home Line STEP 4 - Make Your Payments

Equity Line Of Credit Assuming an interest rate cost of 6%, your monthly payments on the $850 loan will be $73.16. (Remember, this is a secured loan, so the interest rate should be fairly low.) Since you have "borrowed" $850 in cash, you will use that money to keep the payments going on the loan. Be sure to make your payments well before the due dates. Always pay EARLY in order to be on the safe side in establishing good payment history.

Bad Credit Mortgage Refinance STEP 5 - Pay Off the Loan Early

Refinance Comparison After six months, pay off the loan early. At this point, you will have approximately $980 remaining from your original $1,000 deposit, part of it as cash on-hand, and some remaining in the savings account. You will have paid a whopping $20.31 in interest (assuming the rate was 6% for the secured loan). I'm sure you will agree that $20 is a small price to pay for adding six months' worth of good payment history to your credit report!

College Loan Refinance STEP 6 - Make Sure the Loan Shows on Your Credit Report

Refinance After you have paid off the loan, obtain fresh copies of your credit reports to verify that the loan payment history is showing correctly. Since you selected a bank that reports regularly to the big three credit bureaus, everything should show up correctly. But mistakes do happen. If the loan is not reported correctly, then ask the bank directly to fix the omission, or ask the credit bureaus in writing to add the credit reference to your report.

Home Mortgage The Passbook Savings Loan Technique is a simplified version of the more complicated "Three Bank Technique." Basically, the concept is to use the secured loan proceeds from one bank to open up another account at a second bank, and then to repeat the process for a third bank. The math is a lot more complicated, but the principle is the same, with the added benefit of having three simultaneous loans adding positive payment history to your credit report. This approach costs a little more in interest expenses, and involves a lot more work, but can really turbo-charge your positive credit history.

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