2010 - The Year of Credit Rebuilding

There has been no time in recent history when your credit score has been as important as in 2010. The vast reduction of available credit in the form of cut backs perpetuated by the credit card companies is the predominant reason for this. In fact, maybe you noticed that your available balance was drastically reduced overnight!

It is now even more difficult to be approved for a home mortgage. In order to be approved for a mortgage today, you must now have a minimum credit score that is 40 points higher and, if you are hoping for reasonable rates, you will need a minimum score which is 28 points higher.

You can rest assured that it will be almost impossible to obtain new credit in 2010, especially if your credit score isn't up to par.

In light of this, you will need a strategy for hiking up your credit score this year.

This past weekend, I sat down and committed to paper my 2010 financial goals. I even included my goal of increasing my FICO score to 775.

Your financial goals may not be the same as mine. However, I hope that you have given them some thought. Whatever goals you may choose, it is important to include improving your FICO score and removing negative items from your credit history in your overall plan. For a simple formula to help you achieve these financial goals, see below:

Credit Strategy #1: Questionable Negative Items Should Be Deleted From Your Credit Reports

You should at once dispute any questionable negative item such as a collection, late payment, charge off, repossession, and/or bankruptcy in order to remove it from your credit report.

You can do this yourself with a regular dispute letter which you can find here.

Sometimes, items such as judgments, charge offs, and repossessions are particularly stubborn to remove from your credit report. As these items have a tendency to be a bit more "sticky," you may require something more forceful than a standard dispute letter.

Something you might try is called "debt validation." This is where you demand that your debt be validated by the original creditor. (This is substantially different from disputing an item with the bureaus. However, it is often very effective when dealing with collections and charge offs.)

It is probably best not to attempt debt validation on your own. I tried to do it myself and failed miserably. In fact, I did such a poor job that the creditors just ignored my correspondence altogether.

It was a different story when my attorneys at Lexington helped though. They got a big bad collection agency (Midland Credit) to contact the bureaus and have them remove all the charge offs and collections.

You may not want to get a firm like Lexington Law involved. This approach is for people who are seriously dedicated to repairing their credit. If this is you, you can contact Lexington Law at (800) 636-3158 and speak to one of their paralegals for a free consultation.

Credit Strategy #2: Move Forward with Building Good Credit

If you have an unsecured account, this is pretty easy to accomplish. Pay your bills on time. It would be even better to set up an auto pay so your payment is never late. Doing this also saves you the cost of postage so you are actually saving money!

Rebuilding good credit can be more difficult if you don't have an unsecured account such as a Visa or MasterCard. Additionally, it will be very difficult to obtain one of these cards if your credit score is in the 500 range or lower.

Credit Strategy #3: Don't Get Discouraged or Let Down Your Guard

Stay persistent. This will take time. If you get started today you can consider yourself ahead of the game. Keep a detailed log of what your score is today and track your progress. Odds are that if you follow these tips your score will continue to climb each month.

Don't become down-trodden if things don't work out the way you think they should. Different strategies may be available to tackle an issue.

We raised our credit scores from the upper 500 range to 745 and 763 in under six months and got approved for our dream home. See proof of our credit repair success at www.creditforcouples.com and get the real truth about lexingtonlaw.com .