It is a fact of life; when it comes to credit repair, sheer effort does not guarantee results. Real credit repair success requires finesse. If you do it right you will be amazed at the results, I promise you. But err in a critical area and your scores will languish, or even plunge, in spite of your hard work. Here are the two most common credit repair errors made. Avoid them at all costs, but if you have already made these mistakes, don’t panic. Adjust your course today and before you know it you will discover the true potential of credit repair.
Failure to Rebuild
Most people focus their credit repair efforts on removing erroneous derogatory information from their credit reports. There is nothing wrong with this; cleaning up your credit report is essential and even exciting. There is nothing like watching those negative items fall away, month by month. But this is only part of the picture. Your credit scores are driven by both the negative and the positive information on your reports. You must feed positive data to the credit bureaus every month. The best way to do this is with credit cards. If the events of life have left you with no open credit cards you should open two cards immediately. Stick with MasterCard and Visa. Secured cards are the perfect credit repair tool. Make your payments on time and keep your balances low. Here is a little motivation; two little cards, managed right, are worth up to 150 points within six months. So start today!
Maxing Out Revolving Debt
By the same token, those very revolving accounts that will resuscitate your credit scores and bring you credit repair success can also destroy your credit scores and leave you wondering what went wrong. If you max out your credit cards you will see your scores take a nose dive. How bad could it be? Like a mirror image of the positive potential, maxed out cards can cost you 150 points; it’s a credit repair disaster. This is true regardless of the credit limit on the card. The dollar amount is irrelevant. You may only have a couple of secured cards with limits of two or three hundred dollars, but let the balances drift up to the limit and your credit repair project will crumble. Here is the formula for success. Get the balance under twenty percent of the limit and you are solid gold. For example, if you have a limit of two hundred dollars, reduce the balance below forty dollars. If you have maxed out your cards, not to worry, just pay down the balances and watch your scores soar. Here’s to your credit repair success!