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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All right folks! I’ve shown you the importance of your credit score, so today I’m going to give you some tips on how to raise it. Now, please keep in mind that if your score is tier one, there’s not much I can do for you. Not like you guys need it anyways. But for those of you in the 600s and would like to make that final leap, this is for you.

An analogy I like to make regarding improving your credit score is, that it’s a bit like losing weight. It takes time, effort, and there is no quick fix. In fact, quick-fix efforts can, and more likely than not will, backfire. Remember the whole Atkins fiasco? The best advice I can give you is to manage credit responsibly over time. Okay? Now on to the tips!

For Amounts You Owe
Keep balances low on your credit cards. High outstanding balances will negatively affect your credit score. Also, use your cards lightly. Racking up big balances can hurt your score, regardless of whether you pay your bill in full each month.

What is reported to the three credit bureaus is the balance reported on each of your last statements. That means paying off your balances each month isn’t financially smart (well, it is) because the credit bureaus just don’t care.

Here is how you can typically can increase your score in this area. Try limiting your charges to 30% or less of each card’s limit. And also pay off your debt rather than moving it around. The most effective way is to pay down your revolving credit. In fact, owing the same amount but having fewer open accounts will lower your score further.

Don’t forget to check your credit limits either. Your score might actually be lower than it should be if your lender is showing a lower limit than you’ve actually got. So call in and fix it. Most credit card issuers will quickly update this information if you ask.

Here is what I mean. If you consistently charge the same $2,000 each month, with a limit that’s still showing as $2,500, it will look like you’re regularly maxing out that card every month.

Oh, and don’t close unused credit cards as a short-term strategy to raise your score. Dust off that old card you save for emergencies. The older your credit history, the better. If you stop using your older cards, the issuers may stop updating those accounts to the credit bureaus. The accounts will still appear, but they won’t be given as much weight in the credit scoring formula as your active accounts. So, I would recommend you use their older cards every few months to charge a small amount and pay it off in full when the statement arrives.

Don’t open a number of new credit cards that you don’t need, just to increase your available credit either. This approach could backfire and actually lower your credit score beacuse all of a sudden, you have a bunch of potential debt. That, and it looks like you are desparate for money to use.

Looks like this post is getting longer than anticipated. So, I’m going to leave you with a few more obvious tips and give you the rest of my pearls of wisdom next time!

Always pay your bills on time.
Pretty obvious, right? Delinquent payments and collections notices have negative impacts on your credit score. And trying to dispute them is even more of a pain. Do yourself a favor, just don’t have a late payment to begin with.

Pay down your credit cards.
Paying off your installment loans (mortgage, auto, student, etc.) can help your score, but typically not as dramatically as paying down, or paying off, revolving accounts like credit cards.

The credit bureaus like to see a nice, big gap between the amount of credit you’re using and your available credit limits. Getting your balances below 30% of the credit limit on each card can really help.

While most people recommend paying off the highest interest rate card first, a better strategy is to pay down the cards that are closest to the maximum limits.

If you have missed payments, get current and stay current. The longer you pay your bills on time, the better your credit score. Be aware that paying off a collection account will not remove it from your credit report. It will stay on your report for seven years.

Okay guys, I squeezed in as much as I can this week. Stay tuned for more!

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Well, after over 9 years in the real estate investment game, I thought it was finally time to pass on my experience to the next young Omorosa or Mr. Trump. This site is by no means the one-stop shop as many of you believe, and is organized in no particular order. But take away what knowledge you can, and use it!

For the first time visitor, this site is called Alex Leigh dot Net, The Miscellaneous Ramblings of a Real Estate Mogul, because that is what I am – a Real Estate Mogul – and that is what I’ll be doing – rambling.

Now, a little history of who I am. My name is Alex Leigh (as you no doubt deduced from the domain name). I also go by the nickname “Lex,” named after Superman’s arch nemesis, Lex Luthor. I was born and raised in San Francisco, California. I own property from Southern America, to Asia, Australia, and the United States.

I invested in my first income property right out of high school, and have not stopped since. My properties have funded my undergraduate education at CAL, and currently a law degree. After almost a decade of “getting a good education so I can get a good job” route, I decided it was time for a change, and the internet was where I was going to stake my claim.

In October of 2006, I started a little motorcycle magazine site called Inline Performance Magazine. That site has risen to become one of the largest sportbike media outlet sites on the net. Currently the site has over 300,000 page views per month.

Besides taking care of the day to day business at Inline Performance Magazine, I can be seen running errands on my motorcycle around the Bay Area, working out at Fitness USA or studying at the UCSF Library. I am best known for my famous quotes “That’s not fair!” and “Just do it!”

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