| Do it yourself- Repair Your Credit (Part 2 of 3) | | | | stay on the report for seven years from the date of |
| Additional tips for raising your score: | | | | last activity -- whether that is the date that the |
| A. Pay credit cards and revolving credit down below | | | | account was filed as a collection or the date the |
| 50% of what is available (line amount.) | | | | account was paid in full. Here's an example: |
| B. Do not close credit cards after you pay then off. | | | | "Jane Doe" had a collection for $300 filed against her |
| Keep them open. Some people do not understand | | | | in October of 1994, and she hasn't paid it. It is now |
| how this works and will tell you to close your credit | | | | September of 2001, so in a few weeks that |
| cards. That is totally incorrect. In addition to helping | | | | collection can come off of her credit report. (She will |
| to raise your score some loan programs will | | | | probably have to request of all three credit bureaus |
| specifically require a number open and active trade | | | | that they take it off.) However, Jane has applied for |
| lines. | | | | a loan today, and the loan officer tells her that she |
| C. Limit the number of people who pull your credit, | | | | has to pay off that debt in order to be approved. |
| whether for a car, cell phone or mortgage. NOTE: | | | | Since she has the money, she pays it off. Because |
| you pulling your credit as above is called a "soft pull" | | | | the date of last activity is now September 2001, the |
| and will not show up on your credit and will not lower | | | | collection will show on her report until September |
| your score. | | | | 2008 -- another seven years. |
| D. Want to improve your credit scores by 10+ | | | | Bankruptcy information can stay on a credit report |
| points? While this is no guarantee, it does work! It is | | | | for ten years. Information about foreclosures is |
| simple and works fairly quickly. You can electronically | | | | reportable for twelve years from the date filed. |
| Opt-Out at one of the credit bureaus. I have seen | | | | Garnishments, judgments, and tax liens can stay on |
| this improve credit scores up to 20 points. The | | | | the report for twelve years from the date of entry |
| benefit is that no pre-screened offers for credit | | | | or for seven years from the date they were |
| cards or other credit will be sent to you from | | | | satisfied. Dismissed garnishments, judgments, and tax |
| Companies who use the credit report information for | | | | liens are not reportable. |
| pre-approvals. The score improvement is created by | | | | Type of Information & Length of Time Can |
| limitations of securing additional credit and prevents | | | | Stay on Credit Report |
| credit card companies from pulling/viewing your credit | | | | General credit information- Seven years |
| without your permission. How do you think you are | | | | Collection- Seven years from date of last activity |
| pre-approved? Now you know. While this does not | | | | Bankruptcy- Ten years |
| inhibit you from obtaining credit, it limits the ease of | | | | Foreclosure- Twelve years from the date filed |
| just mailing in a pre-approved offer. | | | | Garnishment- Twelve years from the date or entry |
| E. Another way to improve your credit score or | | | | or seven years from the date satisfied |
| increase your limited credit is to have you apply for a | | | | Judgment- Twelve years from the date or entry or |
| secured credit card. Exercise judgment when doing | | | | seven years from the date satisfied |
| this. In cases where you have limited credit, this will | | | | Tax lien- Twelve years from the date or entry or |
| add another trade line and help you. You must keep | | | | seven years from the date satisfied |
| this current and only do this with one or two items | | | | Continued... |
| not many. See below for more information on this. | | | | DISCLAIMER: No claims or guarantees are being |
| How Long Does Information Stay on a Credit | | | | made as to the result of applying the information |
| Report? | | | | herein or to its effectiveness. Always consult an |
| Credit information can, and usually does, stay on a | | | | attorney or account for legal or financial matters. |
| person's credit report for seven years. Collections | | | | |