Okay guys and gals. Today we have part two of the How To Raise Your Credit Score Arc. I’m just going to dive right back in. Last week we left off with tips on amounts that you owe, so we’ll move on from there.

Length of Credit History Tips
If you have been managing your credit only for a short time, don’t open a lot of new accounts. New accounts will lower your average account age, which will have a larger effect on your score if you don’t have a lot of other credit information. Also, rapid account buildup can look risky if you are a new credit user. Lenders will get the impression that you are desperate for money.

Dispute old negatives.
Say that fight with a certain rental car company (damn you, Enterprise!) over an unfair bill a few years ago resulted in a collections account. You can continue protesting that the charge was unjust, or you can try disputing the account with the credit bureaus as “not mine.” The older and smaller a collection account, the more likely the collection agency won’t bother to verify it when the credit bureau investigates your dispute.

Some consumers also have had luck disputing old items with a lender that has merged with another company, which can leave lender records a real mess. Mind as well take advantage of their disorganization. Hey, it’s a big eat small world. Deal with it. No, take advantage of it!

Get some goodwill.
On the same vein, if you’ve been a good customer, a lender might agree to simply erase that one late payment from your credit history. You usually have to make the request in writing, and your chances for a “goodwill adjustment” improve the better your record with the company (and the better your credit in general). But it can’t hurt to ask. Hmmm, someone remind me to post a dispute letter template for you guys in the near future.

However, here is a longer term solution for more troubled accounts. Ask that they be “re-aged.” If the account is still open, you may be able to convince the lender to erase previous delinquencies if you make a series of 12 or so on-time payments. For those of you charmers out there, now’s the time to shine. Sweet talk, smooth talk, whatever. It’s your credit we’re talking about here.

New Credit Tips
Do your rate shopping for a given loan within a focused period of time. Credit scores distinguish between a search for a single loan and a search for many new credit lines, in part by the length of time over which inquiries occur. Supposedly, any and all inquires within a 15 day period is counted as one pull nowadays. Just make sure it is within the sametype of loan. Don’t shop for a new car and a house refinance within the same week.

Reestablish your credit history if you have had problems. Just remember, opening new accounts responsibly and paying them off on time will raise your credit score in the long run

Note It’s okay to request and check your own credit report. This won’t affect your score, as long as you order your credit report directly from the credit reporting agency or through an organization authorized to provide credit reports to consumers.

Types of Credit Use Tips
Apply for and open new credit accounts only as needed. Don’t open accounts just to have a better credit mix. It probably won’t raise your credit score. See my explaination above.

Apply for and use credit cards but manage them responsibly. In general, having credit cards and installment loans (and paying timely payments) will raise your credit score. Someone with no credit cards, for example, tends to be higher risk than someone who has managed credit cards responsibly for a significant period of time.

Note Closing an account doesn’t make it go away. A closed account will still show up on your credit report, and may be considered for the score. Usually accounts will stay for seven to ten years, depending on the type.

Okay folks, I’m out. See you in seven!

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