Gerber and Co., CPAs and Financial Advisors

Credit scores range from 300 to 850. A score below 620 is considered poor and will create difficulty for obtaining a loan or credit card. A score above 740 is considered excellent and will receive preferred rates and terms.

This guide is intended to help individuals achieve excellent credit, without having to pay for outside services. In some instances of severe credit damage, professional assistance may be required.

Short term strategy for improving your credit scores*

Order the three credit reports from Experian, Equifax, and Transunion, (e.g. www.myfico.com, www.annualcreditreport.com). Note: Free reports from the reporting agency may not include the actual score.
Review the credit reports, and circle 3 items that you don't want. Focus on older or merged accounts. Frequently, the bureaus do not verify older and smaller accounts. Merged accounts are difficult to verify, so these items will likely be removed.
Write a short letter to each of the agencies requesting removal of those items.
Mail the 3 letters to each agency, along with a copy of the circled items.

Experian

Equifax

Trans Union

Repeat the process every 60-90 days.

Individuals remain responsible for any debt or delinquencies; however it will likely be removed from their report. Long term strategy for improving credit scores

Check your credit reports Quarterly. Dispute errors and have them corrected right away. Focus on these items:

- Any negative item that is not yours
- Credit limits that are reported lower than actual
- Collections, late payments, charge-offs, delinquent
- Accounts reported as "settled," "paid derogatory," or "paid charge-off."
- Accounts reported as unpaid that should have been settled by bankruptcy
· Pay on time. Avoid late payments and having accounts sent for collection.
· Never pay past 60 days late. Many lenders do not report late payments until after 60 days.
· Open only 2-3 major credit card accounts. Keep older accounts , but use all accounts.
· Do not consolidate debt onto one card. Use only up to 30% of credit limit on any given account. Spread balance over multiple cards. Pay cards that   are closest to their limits first, or transfer the debt to another card.
· Check your credit limits. Make sure lender reports correct credit limits. If a lender does not report a limit (e.g. AMEX), then pay off the balance before   the end of the cycle.
· Maintain a low balance. Pay off your balance each month, or keep monthly balances low.
· Don't close unused accounts before paying off debts. This could lower your credit limit.
· Avoid multiple inquiries. Don't let lenders run your credit report until you are ready to commit.
· Ask for forgiveness. Lenders may forgive/remove one late payment. Some lenders re-age your account and remove all previous defaults if you make   consecutive payments on time.