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Credit Help

Our Credit Help Center is here to help you make informed choices about your finances.

Please take a moment and review fast free money saving tips and information below:

Below, we will answer the most important question that we get at MoneyNowUSA - Repairing Your Credit File

Because improving and protecting your credit score is the single most important step in improving your personal finances. Please take a moment and review our important section on credit below. We have outlined a simple 9 step process to get you on your way to improving your credit, and your options in life.

Step 1: Order Your Credit Reports

Take control and order your credit reports. At Money Now! USA we have seen thousands of borrowers who are just a few simple steps away from dramatically improving their credit. One important rule of thumb: usually, it is not as bad as you think it is. The best thing to do is take control and order your report. At Money Now! USA we offer free credit reports that include instructions on what specific areas you can improve on. Remember, in this day and age almost everybody runs your credit. It is not only loan providers that look at your credit file anymore. Employers, insurance companies, government - even cell phone companies - pull your credit to make decisions that impact your standard of living. Existing creditors, like credit card companies, pull your credit periodically to check on your current credit file in order to evaluate your current risk profile. Arm yourself with knowledge, and see what they know about you. Take action now. To get your free credit report Click here.

Step 2: Pay Bills On Time

Paying your bills on time is important because your payment history can account for up to 30% of your credit score. Remember one late payment can lower your credit score as much as 50 points! The good news is that creditors report your payment as late after 30 days of the due date. For example, if your car payment is due on the first of March, but your payment is confirmed received by your finance company on the 28 of March, you may have to pay a late fee but your payment is NOT 30 days late and will not be reported as such to the credit agencies. A good payment history shows that you are reasonable with your finances and a good credit risk.

Step 3: Keep Using Credit

It is important to use credit. The more data that you have proving you are a good credit risk the better. It is considered optimal for Americans to have at least 3 trade lines in order build a more complete credit file. If you have only one or two forms of credit, consider adding a couple more to complete your file. If you just have a credit card or a personal loan consider adding a car loan or a mortgage when the time is right.

Step 4: Pay Down Balances

Up to 30% of your credit report is calculated by how you use debt, revolving debt. If you have credit cards, you need to do two things: increase your credit limits and pay your balances down. Your credit card balances should be no more than 50% of your credit limit. The fastest way to improve your credit score is to pay down your credit card balances.

Step 5: Keep Accounts Active

One of the biggest mistakes people make with their credit file is they close open credit accounts! Please do not do this. Even if you never use the account keep it open, and keep the balance at zero. Closing a good standing account effects your credit score in two ways. First, a large part of your score is based on how long your credit accounts have been active. Second, the longer you have held a credit account in good standing the better for your credit score. You can cut up your credit cards, but do not cancel them unless you have to.

Step 6: Examine Your Reports Carefully

Almost 30% of credit bureau reports contain significant errors that could affect consumers, and cause them to be denied access to mortgages, car loans and credit cards. That's because credit bureaus do not verify the information they receive from your creditors. Like it or not, keeping your credit report clean and accurate is your job. Once you get your three reports, look carefully for everything from typing errors to outdated and incomplete information. Make a thorough list of items you dispute and why. If the negative information in your report is true, only time and improved habits can change that for the better. Late payments and charged-off accounts remain on your report for seven years, bankruptcies for 10 years. Most creditors, however, look for a steady pattern of payments rather than focusing on one-time or rare occurrences, so consistent on-time bill payments will improve those blemishes.

Step 7: Dispute and Document

Since a bad report can cost you money, it pays to be thorough. You can either complete the dispute form provided with your credit report or write a letter. Clearly identify each mistake and state why it's wrong. One recommendation is to send a photocopy of your credit report with the mistakes circled to the reporting credit bureau with copies of your supporting documents. Keep copies and records of all the forms, letters and documentation that you send the credit bureaus, plus dates sent. In short, document, document, document. The credit bureau must investigate any relevant dispute within 30 days of receiving your letter. Any item that is not verified as accurate by a creditor is removed. If the credit bureau makes any changes to your credit file, they will send you the results along with a free, updated copy of your credit report. Once a negative item is removed from your report, the credit bureau cannot put it back on unless a creditor verifies its accuracy and completeness after the fact -- and sends you written notice.

Step 8: Dissolve Your Debt

The next task is to devise a spending plan that reduces your debt and allows you to pay on time, all the time. If you're having difficulty making payments, be proactive. Call your creditors and negotiate with them to keep your accounts current and not be reported as delinquent or "bad debt." You can ask for reduced monthly payments, or even change due dates to balance out your monthly bills. The same strategy can be used for fixed-loan payments, but it should only be used for the short-term. You'll pay more interest to extend the repayment schedule, but it allows you to stay current and save your credit rating. Use the extra money to pay off debts one at a time, gradually increasing payments to other debts. Slowly phase out the use of unneeded credit card accounts. But remember

DO NOT CLOSE THE ACCOUNT

. Simply stop using it and pay it off. If you make the very common mistake of closing accounts you will almost certainly negatively impact your credit score, which divly considers the ratio of total credit card debt to total available credit or credit limits. A good rule of thumb is to keep your revolving credit card debt to less than 10 percent of your available credit. However, it is optimal if you keep your balances low so you can avoid revolving balances. This will save you the interest charges.

Step 9: Add Stability to Your Credit File

You can also work to add positive information to your credit file. You may have been denied credit because of an insufficient credit file, even though you do have credit. That's because some creditors (local banks, credit unions, and travel, entertainment and gasoline card companies) may not report your credit history to the bureaus. Try asking the credit grantors to report your account information and monthly payment history to a credit-reporting agency. This is not a requirement and you will not be able to force them to do so. In the future, before opening a new account, ask if your on-time payments will be reported monthly to all three credit-reporting agencies. If the answer is "no" then think about using another lender who will. If you have really bad credit or even filed for bankruptcy, do not let your credit status go dormant. The faster you jump back in and begin to re-establish good credit, by paying regularly on time, the faster you will improve your credit score. A secured credit card offers those with no credit, and those rebuilding their credit, an opportunity to start over and establish a new and solid credit history. Shop around for the best deal available, but limit your applications. Credit scoring models look at how many new accounts you've opened, as well as the number of "inquiries" for those new accounts. A sudden flurry of inquiries can result in a lower score.

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