Normally it would take at least 45 days before you could raise your credit score.  There is very little you can accomplish quickly disputing late payments, so we put those aside for now.

Credit Repair Tips

Collection accounts
Debt collection accounts, no matter how small or old, have a very negative impact on your credit score. Removing them from your credit report will improve the credit score fast.  Contact collection agencies and offer to pay off if they remove collections from your credit report.  Known as Pay for Delete, (you pay, they delete), this procedure can raise credit score 50 points at least. Depending on other factors, like credit account types you have, how old collection accounts are and for how much, you can even see an over 100 point raise.

Revolving debt utilization rate
This percentage ratio between balance and credit limit can be very useful in raising your credit scores.  Bringing it under 9% is one of the fastest ways to a higher score. You can raise it fast, combining a few things,
- paying off your revolving debt down, which is quite obvious
- requesting credit line increase from the creditors
- carrying a very small balance ($5 to $10) on one or two credit cards

Medical collections
If you have medical collections on your credit report, getting rid of them is the sure way to raise credit score. You need to ensure that the collection agency represents the doctor, dentist, hospital you owe money to, called the original creditor. For fast results, pay your debt to the original creditor in full, asking in return to remove their own derogatory records and notify collection agencies.  But you must follow up immediately with collectors yourself upon receiving satisfaction of debt letter from original creditors.

With these credit repair tips, will you be able to raise credit score 50 – 100 points? Most definitely. In 30 days? Very likely – but don’t wait until you find the house you always wanted, only to see it gone because you are not qualified.  Remember that debt validation and credit dispute also works, but often takes longer.

When trying to repair credit scores quickly, think of the 5 main components which influence credit scores in the following proportions -

Payment history: late payments, bankruptcies, collections, judgments – 35%
Debt utilization: the ratio of revolving balances to total revolving credit – 30%
Credit history length: how long the accounts have been open – 15%
Type of credit: credit cards vs. installment loans – 10%
Hard inquiries: applications for new credit – 10%

These proportions, however, may change depending on the type of loan the consumer is looking for.  If you must repair credit score quickly, understand that Equifax, TransUnion and Experian use at least three different scoring models for three different types of credit – mortgages, auto loans, and consumer credit, because these different types of loans carry different default risks.

The credit score models differ in what they are intended to predict, the statistical methods used to determine credit-worthiness scoring, and what data are used and how they are weighted.  That being said, one needs to take a different approach to repair credit scores each and every time.

Equifax uses Beacon 5.0 for home mortgages, but Pinnacle model for auto loans. TransUnion uses FICO Classic 04 and Empirica Auto 95, while Experian uses Isaac/Fair Model II and Advanced Risk Model respectively.

So between two models used by the same credit reporting agency, the credit score can differ by 50-60 points and sometimes more, resulting in quite different rates for a home mortgage or a car loan.  Since cars depreciate very quickly, and homes tend to hold their value or appreciate, the current debt weighs much more for the auto loans.

When aiming to repair credit score, concentrate on the factors that influence the model you will need the most.  More on how to credit repair tips.

Your comments and suggestions are welcomed.

Fightcredit.com helps provide useful credit repair tips, but should in no way be considered legal advice.

In my opinion, trying to achieve a perfect credit score is a waste of time. The truth is that unless you are simply obsessed with that, a perfect credit score is not needed. Just maintain them over 760. Pay your bills on time, neither apply nor open new credit card accounts but stick to the ones you have for years and pay credit card balances in full monthly. If you do carry a balance or a few, keep them under 10 percent of your combined credit limits. Then over the time, you will get a near perfect credit score and rating.

Q: I have a question on TransUnion codes. Got my credit report and can’t quite figure out what 09P means? Also I have R03 codes in two places. My TransUnion credit score is only 574.

A: TransUnion code 09P most probably stands for bad credit charge off. Is that on the far right under under MOP column and under Collections section? 09 code is for a charge off and ‘P’ is likely just a date indicator.

TransUnion R03 codes indicate your revolving accounts which are more than 60 but less than 90 days past the due payment dates. Basically it sounds like you have two bad credit card accounts which are over 60 days late. No wonder your credit score is low.

Here are the TransUnion codes for account type and how you pay those accounts.

Type of Account
O - Open Account (30, 60 or 90 days)
R - Revolving or Option
I - Installment
M - Mortgage
C - Check credit (line of credit)

Current Manner of Payment
00 - Not rated, too new to rate, or approved but not used
01 - Pays as agreed
02 - 30–59 days past the due date
03 - 60–89 days past the due date
04 - 90–119 days past the due date
05 - 120 days or more past the due date
07 - Paying or paid under Wage Earner Plan or similar arrangement
08 - Repossession
8A - Voluntary repossession
8D - Legal repossession
8P - Paying or paid account with MOP 08
8R - Repossession; redeemed
09 - Charged off to bad debt
9B - Collection account
9P - Paying or paid account with MOP 09 or 9B
UC - Unclassified
UR - Unrated

See more credit report codes that you can encounter.

I bet many of you are going to get a kick out of it. The Fair Debt Collection Practices Act or FDCPA was created in 1978 as a part of the Consumer Credit Protection Act, specifying strict guidelines under which debt collectors may conduct business, defining consumer rights and providing consumers with an avenue for disputing and obtaining debt validation information in order to ensure its accuracy. The FDCPA also prescribes penalties and remedies for violations of the Act. Basically it gives you some ammunition against collection agencies, prohibiting them from using abusive and deceptive collection practises among other things.

Well, today TransUnion announced that it will start utilizing data from FDCPA Case Listing Service LLC to provide an added feature for batch records delivered via TransUnion Collections Prioritization Engine. The new solution, named FDCPA Case Search, allows TransUnion to alert debt collectors about collection accounts that have previously been involved in FDCPA litigation to assist collectors in determining strategy. So basically, the idea is to help collection efforts against you, the consumer. Supposedly, in 2008, 5,383 cases were filed against collection agencies in U.S. District Court for alleged violations of the FDCPA. The expected figure for 2009 is well in excess of 7,000 for the whole year.

My heart goes out to those poor collection agencies, but I have always thought that the purpose of credit agencies, TransUnion included, is to simply gather, arrange, process and report. But then again, in a slow economy, everyone wants to make a buck. See Free TransUnion credit report, FICO score and dispute.

Q: A judgment was filed last February and I just paid it in full yesterday. Does a paid judgment affect credit scores? Can I remove a paid judgement from my credit report? I would like to buy a house in a few months.

A: Of course, paid judgment stays on your credit report for at least 7 years and affects your credit scores very negatively. You may still try buying your house if your middle score is at least 620. You can even get an FHA loan, but unless you had quite an establish credit history prior this judgment, I doubt you scores are above 620 now. But check them as soon as you can. Get the same mortgage broker whom you may later use for home purchase to run your credit report. Can you remove a paid judgement from credit reports? Theoretically, you can try get this judgment vacated. You would have to file Motion to Vacate Judgement. Procedures also vary depending on state. See here.

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