Once burned, twice shy, it is natural. If credit cards contributed to the negative issues on your credit report it makes sense that you would hesitate to venture back into the realm of revolving debt. Yet, there is nothing like a credit card (or preferably two) to trigger quick and significant credit repair progress.
Accentuate the Positive
Removing derogatory information from your credit report is a plus. For sure! And your clean report will make it possible for your scores to rise, but you need to give FICO something to work with. The FICO scoring model bases the calculation of your score on both the negative and the positive. Removing the negative will eliminate the downward pressure, but it is the presence of the positive that will make your scores rise.
Like a Rocket
Credit repair, to deliver the amazing potential it is capable of, requires that new positive accounts be opened and managed in a prudent manner. Do this during the cleanup phase of your credit repair program and your scores will take off. Two new credit cards should be worth over 100 points within 6 months of the time they show up on your report. If your FICO is in the mid-500 range today, this can be enough to allow you to qualify for a decent auto loan, and even a mortgage.
The Easy Way to Build Credit
Most of the members of our credit repair service opt for secured credit cards for the simple reason that it is difficult these days to qualify for regular unsecured cards. Secured cards are collateralized, so there is no fear of denial. The best of the breed report to all three bureaus, have very low entry costs, and do not report as secured on your credit report.
An Awesome Technical Factor
Here is a little known FICO credit repair fact. The FICO scoring model puts more weight on new accounts opened after a period of bad credit than pre-existing accounts that survived your financial troubles. So, if your finances are stabilized and the days of late payments are behind you, open a couple of secured cards and take advantage of this awesome technical factor.
Make your payments on time. Nothing can hurt you more right now than a late payment. And watch your balances. Use your cards as you wish, but know that there is a direct correlation between your balances and your scores. Run up the balances and your scores will drop. Reduce your balances and your scores will rise. If you are monitoring your scores, plan ahead and utilize less than 20 percent of the available credit line. Your scores will thank you!