Bad Credit is no fun, and the thought of fixing it yourself can be overwhelming and time-consuming. Then with all the bogus information online, you may have even read and believed that credit repair isn’t possible, because ONLY TIME can fix bad credit. (THIS IS FALSE)
While a solid credit repair approach with a credit repair professional who understands and has been educated in the laws that protect consumers and their credit reports can give you amazing, and fast results, there are many other things you can easily do to improve your credit health yourself, that is not as difficult as you may think. Every financial decision that you make can influence your credit rating, and there are many things an individual can do that can improve their credit score aside of a solid Forensic Credit Restoration Program.
Here are the Top Ten Do’s & Don’ts of Credit Repair – (none of them involve sending out letters or attempting to become a Credit Repair Profesional):
1. Do pay your bills on time. Your payment history makes up 35 percent of your credit score. Even just (1) one late payment can lower your score dramatically.
2. Don’t close any credit card accounts just before you apply for a loan. Credit utilization, the amount of all revolving debt divided by your overall credit lines, accounts for 30% of your score. The more credit you have available to use, the lower your credit utilization. The lower your credit utilization, the higher your score. When you have more credit available, you have a better chance of getting a desirable interest rate on the loan. If you must, wait until after you secure the loan to close the card.
3. Do close store cards if you must close any accounts — unless those cards are your oldest accounts (see Don’t #4). Understanding, the limit on store credit cards are often very low, as little as $500. At such a low limit, carrying a balance of $300 puts your credit utilization at 60%, which lowers your score.
4. Don’t close your oldest credit cards. Part of the credit rating formula is longevity. Fifteen percent of your FICO score is the average age of all your trade lines.
5. Do open a credit card if you don’t already have one. Having new credit will account for 10 percent of your score. If you have never had a credit card before or your credit score is a bit low, you may be able to open a secured card with a deposit. Shop around for the best terms and interest rates and deposit requirements as they vary widely. Make sure that the card you do get reports to the credit bureaus so that you will get credit for payments on time.
6. Don’t open multiple new cards at the same time. Every time you apply for new credit, an inquiry is placed on your credit report, which can lower your score up to 20 points, depending upon the number and frequency of applications. Additionally, it will shorten your average account age, and that will also lower your score as a result.
7. Do be conservative when using your credit cards. Studies have shown that people using 30% or less of their available credit have the highest scores. Try using your card for things that are a part of your normal monthly expenditures such as gas and groceries. Then each month pay it down to 30%.
8. Do set up alerts through your credit card’s website. If you have difficulty keeping track of expenditures, you can set up email or text notifications to warn you when you’ve reached a certain limit.
9. Do set up automatic payments to creditors. On credit card accounts, make an automatic payment every two weeks of at least your minimum payment. Not only will this allow you to avoid late fees, but also you’ll never have to worry about a late payment on your credit report. Also, this way you will be putting extra money towards your balance, helping you to lower your credit utilization (Review Don’t #2).
10. Don’t pay less than your minimums on credit cards. Even if you are making the payment on time, paying less than the minimum counts as a late payment. Why, you ask? Because you would be paying less than the agreed payment, and until the bank receives the entire amount, the payment is not counted as received.
EditMyCredit.Net – a full-service, yet affordable, Forensic Credit Restoration Company.
Do you hate having bad credit?
Is your poor credit preventing you from obtaining the things you want or need to accomplish?
Are you looking to repair your credit but don’t have thousands of dollars to spend?
Do you want a solid credit repair approach with a credit repair professional who understands and has been educated in the laws that protect consumers and their credit reports and can give you affordable, amazing, and fast, results?
Would you like an affordable program that repairs your credit while also having direct access to your Credit Repair Specialist and your real-time results?
Well, then we’ve got the right solution for YOU!
Visit: EditMyCredit.Net
Do you hate having bad credit?
Is your poor credit preventing you from obtaining the things you want or need to accomplish?
Are you looking to repair your credit but don’t have thousands of dollars to spend?
Do you want a person who you can trust to repair your credit while also having direct access to him/her and your real time results?
Well, we’ve got the right solution for YOU!
