How to Raise a 620 Credit Score

How to Raise a 620 Credit Score

A good credit score is vital to success. Whether it’s for a mortgage or a new credit card, having good credit is important for following your dreams.

Here’s how to raise a 620 credit score:

Making Payments on Time

Payment history is one of the most important factors for FICO Scores and can account for up to 35% of your score. Make sure all your accounts on current on payments. Late payments will remain on a credit report for up to seven years.

Keeping Your Credit Balances Low

Your balance-to-limit ratio is calculated by dividing the total of your balances by the total of your credit limits. Ideally, you want to pay your credit card off each month, but if that’s not possible be sure to keep your credit utilization rate around 30% or less.

A rule of thumb is to never have utilization rates of more than 30% on any one card or in total. People with the highest credit scores tend to have a utilization rate of less than 10 percent.

Check Your Credit Report Risk Factors

After requesting a copy of your credit scores, you’ll see they come with a list of factors most likely to affect your score. These risk factors will help show you what changes you can make. Once you have that list, you can easily follow it to better your score.

Negotiate with Creditors

Many creditors are willing to negotiate if you are making an effort to pay your bills as soon as possible. Avoiding creditors and continuously missing payments will continue to have a negative impact on your score.

If the last time you’ve made a late payment was more than six months ago and you’ve been paying on time since then, the creditor may be open to remove the late payment, allowing your score to boost quickly.

Raising a credit score of 620 is possible with a plan. These steps could increase your score by 75 or more points in 30 days and qualify you for much better interest rates.

No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a once size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.

We have fixed price programs that get you back on track in as little as 5 months, debt resolution solutions, programs geared toward people who have had recent short sales or foreclosures and many others. Help is just a free phone call away or you can fill out an appointment request. Contact Go Clean Credit to schedule a free consultation today.

Credit Bureau Changes Coming

Changes required from the NY Attorney General’s settlement with the bureaus

This week an agreement was finally reached between the NY Attorney General and the Credit Bureaus. The good news is that there are changes that must be implemented at the bureaus and banks which will positively affect consumers. Here are a couple of the key changes coming:

  • Bureau disputes are automated (scanned disputes are interpreted by software) – bureau employees will now be required to personally inspect the disputes; they will likely pass some of this burden to the banks
  • There will now be a 6-month waiting period before medical debts can be reported
The bad news? The final phase of the changes are not scheduled to be completed until 2018. Past history tells us that ANY changes in credit reporting take a long time to be implemented. As an example, the FICO algorithm versions still being used for nearly all mortgage decisions today are ten years old and quite outdated.”The credit report system in America suffers from inaccuracy and often outright injustice,” Schneiderman [NY Attorney General] said during a Monday press conference. “The need for reform was overwhelmingly clear. This is going to cost [credit bureaus] a lot of money.”

To read more about the settlement and changes coming, Read this article.

What Should You Do After A Short Sale?

What Should You Do After a Short Sale?

We are often asked, “What should you do after a short sale?” If you were a homeowner between 2006 and 2011, chances are you saw the value of your home at all-time high and seemingly fall overnight to a value less than your mortgage. And you weren’t alone. It is estimated that by September of 2010, 23% of all American homes were worth less than the mortgage loan. [Source] While some homeowners weathered the market and are experiencing an upswing, many chose to short sell their homes.

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