10 Credit Hacks to Improve Your FICO Scoreby: Ryan Greeley 

Most of you who have been reading this blog for awhile know that I prescribe a very detailed and specific method for improving your credit score quickly. It basically boils down to removing negative items from your credit report and rebuilding your credit with a secured credit card.
That said, there are other less known methods for improving your credit score and these techniques work even for people with good credit scores. Keep reading because I’m going to give away all my secrets.
Just to be clear, I’ve used most of these methods myself and it’s resulting in my nearly perfect 836 credit score.
1. Use a professional to remove negative items from your credit reportThere are basically two ways to remove negative entries on your credit report. The first way is to use various methods to get the entries removed yourself (the do-it-yourself way). I provide tons of information on where to start with this on the Getting Started page.
Your other option is to have a credit repair company attempt to remove the negative entries. They will obviously charge a fee, but they are generally faster when it comes to removing negatives.
For this I suggest you check out Lexington Law Credit Repair. They’ll take care of you. Give them a call at 1-844-764-9809 or Check out their website. (They are open on weekends) Note: I get a small commission if you sign up that goes to help maintain this blog.
2. Keep 3 major credit cardsI’ve been experimenting for several years on how many credit cards to keep in order to maximize my credit score. To be completely honest, it’s somewhat subjective because the credit score algorithm takes so many variables into account.
That said, I’ve personally found that keeping at least 3 major credit cards open will yield the best results. I should also note that you don’t have to regularly use all three credit cards. Use at least one of these major credit cards regularly and don’t keep a very big balance (more on this later).
3. Pay down your installment loansAnother thing I’ve experimented with is how installment loan balances affect my credit score. By installment loans I mean loans such as student loans, auto loans, etc. Interestingly, I’ve found that paying down loans as quickly as possible will result in a credit score increase.
Paying off debt can be a challenge, but if you’re in a position to do it, I recommend this as a way to optimize your credit score.
4. Optimize your credit utilizationAs a general rule I recommend keeping your credit card balances under 25% of your available credit limit. In other words, if you have 3 credit cards each with credit limits of $1,000 each, keep your balances under $250 on each credit card. Optimizing your credit utilization will have a big impact on your credit score.
Credit card balances are usually reported to the credit bureau every month, which is great because you have the opportunity each month to get your balances right.
5. Increase your credit limitsThis hack sort of plays off the last one. If you are unable to pay down your credit card balances so the utilization is under 25%, another option you have to is increase your credit card limits.
By increasing the limit on a credit card, you will automatically improve your credit utilization. For example, if you have a credit card with a limit of $500 and your balance is $250, your credit utilization is 50%. However, if you increase the limit to $1000, the credit utilization goes down to 25%.
One thing to keep in mind when requesting a credit limit increase is that it will result in a hard inquiry on your credit report, which might result in a small ding on your credit score. It’s generally not a big deal.
6. Use the advanced dispute method to remove negative itemsOne technique for removing negative items from your credit report is to use an advanced method for disputing inaccuracies on your credit report.
I’ve used this method several times to remove negative entries from my credit report back when I had bad credit. Get a copy of your credit report and find the entry you want to remove. Meticulously look over the entry and find anything that might be inaccurate.
Once you find something that’s not accurate, you can dispute it with the credit bureaus. When you write the dispute letter, be sure to specifically outline what is inaccurate.
7. See how a mortgage loan affects your credit scoreIt’s very unlikely that you’ll approach a perfect credit score unless you have a mortgage loan on your credit report. Having a mortgage loan shows that your credit worthiness is good enough for a lender loan you a large sum of money.
It looks great on your credit report and will positively affect your credit score. I don’t recommend getting a mortgage loan unless you can afford it, but if you’re in the position, it’d definitely a good way to increase your score.
8. Close secured credit cards when you no longer need themSecured credit cards are a tool for improving bad credit. Secured credit cards should be used when you are unable to get a major credit card due to poor credit. However, once you’ve had the secured credit card for a couple of years and built up some positive credit history using it, I recommend closing the account.
I normally don’t recommend closing credit card accounts, but secured credit cards you’ve had awhile are an exception. Again, you should be using secured credit cards as a stepping stone for eventually being in a position to get approved for a major credit card such as American Express or Discover.
9. Use a debt validation letter to remove old debts from your credit reportWhen your contacted by a debt collector about an old debt, I recommend replying with a debt validation letter. Check out my full article on this subject for specific instructions.
A debt validation letter in many cases can result in getting old debt collections removed from your credit report.
10. Cease applying for new credit for a full yearLastly, having zero hard inquiries on your credit report with maximize your credit score. When you don’t have any hard inquires on your credit report it means you currently aren’t looking to obtain new credit and it will positively affect your credit score.
The difference between having zero hard inquires and having one isn’t much, but personal experience has shown me that having zero is better than having one or more. Hard inquires usually fall off your credit report after one year, so I recommend ceasing to apply for credit for one full year in order to see this hack take effect.

While I was working on paying off my student loans, I checked my account balances weekly. One day, I logged into my account and the $10,000 I had in outstanding loans had disappeared.
At first, I was elated. Had some generous benefactor swooped in to pay off my debt? Then I realized I couldn’t be nearly that lucky — so I tried to figure out what happened.
Many people, including a financial professional, told me not to look a gift horse in the mouth and ask too many questions. But I didn’t think loan servicers were likely to have forgotten about my debt.
Tracking Down My LoansI tried emailing my loan servicer to find out what happened, but didn’t get a response for a few weeks. I was afraid my loan payments would become due and I wouldn’t know where to make payments, so I decided to check my credit report to see if I could find my loan. 
Sure enough, my credit report showed my loan had been moved to a new loan servicer. When I reached out to the issuing bureau, they said my old lender had mailed me a letter as notice of the change, but I never received a letter.
It’s possible they had an old address on file, or I accidentally tossed it in the trash, but I’m glad I pursued it. If I hadn’t continued digging, I never would have found out and could have defaulted on my debt.
What Happens When Your Student Loan Debt Is SoldMy situation is not unique. Federal and private student loans can be sold to other lenders at any time. There’s a market of organizations that specialize in buying and servicing student loans.
When your loan is sold to a new lender, you’re indebted to the new owner of the loan. You have no more contact with the old one. While the new servicer might offer some new benefits, the basics of your loan — such as the interest rate or repayment term — will not change.
The original lender will send you a letter notifying you of the upcoming switch. Then, you’ll get a second letter from the new lender that explains why your loan was sold, who your new loan servicer is and how to make payments.
How to Protect YourselfBecause lenders can sell your loans whenever they want, it’s important to have safeguards in place. You don’t want to miss a notification and end up falling behind on your payments. Here’s what you can do to protect yourself:
● Update your contact information. If, like me, you’ve moved around, it’s important to make sure your lenders have your most recent contact information. Log in regularly and check to see they have the right mailing address and phone number.
● Read all mail. Read every piece of mail that comes from your lender. Don’t just assume it’s a monthly statement and toss it. It could be an important notification.
● Check the notification for accuracy. If you receive a notice that your loan is sold, make sure the balance and terms of your loan are accurate.
● Contact your lender with any problems. If you can’t find your loan or make payments, call your lender’s customer service line right away.
● Track your loans with the National Student Loan Data System (NSLDS). The NSLDS is a database that tracks your federal loans. It will list which loans are under your name and the loan servicer for each one.
● Check your credit report. If you aren’t sure if your private loan has been sold, you can find out by checking your credit report for free at AnnualCreditReport.com. It will list all your current loans and who owns each debt. Once you have the name of the lender, you can contact them to get your login information and start making payments.
By keeping your information up to date and checking your account regularly, you can prevent any confusion when managing your loans.
What to Do If You Hate Your New Loan ServicerIn my case, my new loan servicer was an improvement over the old one. Their online platform was easier to use and their customer service department was more responsive.
Some people don’t have the same experience. The Consumer Financial Protection Bureau reported there are thousands of calls each year from consumers about their student loan servicers.
If you have problems with your new loan servicer, such as delays in getting a response for an issue you reported, here’s what you can do:
● Contact the student loan ombudsman. If you can’t get your problems fixed, you can contact the student loan ombudsman. An ombudsman is a neutral third party that will work with you and your lender to identify a solution.
● Refinance your loans. If you’re simply looking for more features or want to reduce your interest rate, refinancing your student loans might be a smart approach. If you refinance, you’ll work with a private lender to take out a new loan for the amount of your old one. You can get a different repayment term, monthly payment and interest rate.
Managing Your LoansThe student loan system can be incredibly complex. Trying to navigate it can be difficult, especially since your loans can be sold to a new lender at any time.
You can protect yourself by being proactive and monitoring your credit report. If you hate your loan servicer, know that you’re not stuck with them. You can identify a resolution or get a whole new servicer who offers more favorable repayment terms.


Article by respected owner.