Plan your credit repair project carefully. Little details can make all of the difference. Too many people focus on credit bureau disputes to the exclusion of all else. Everyone loves to see derogatory information falling off their credit reports, but there is much more involved if you want your credit repair effort to produce real measurable credit score improvement.
Watch Those New Accounts
Opening new accounts may be essential for your credit repair success. If you don’t have any credit you must open a couple of credit cards if you ever want to see your credit scores improve, but be careful. Your new accounts are very powerful. As much as they can boost your scores, they can also devastate your credit repair results if you don’t manage them right. Be sure to make your payments on time and be careful with your balances. If you max out the balance on a new card it is likely to cost over 100 points on your score.
Watch Out for Store Cards
Store cards can be handy. They provide convenience, and in many cases they even offer nice discounts. But if you are starting a credit repair effort store cards can be problematic and should be avoided. Store cards combine a tricky combination of an inquiry, a low limit almost always equal to the amount of your initial purchase, and an automatic penalty by the FICO scoring model. Store cards have their place, but until your credit repair success is solidified it is best to steer clear.
Watch Those Balances
Now is the time to start reducing your credit card balances. As mentioned, a maxed out credit card can put a dent in your credit scores. Don’t underestimate the potential impact. Many people make the wrong assumption that if they make their payments on time they will have great scores. This is far from the truth. For the best credit repair results you should attempt to get the balances on your revolving accounts down to 20% of their limits.
Don’t Give Up
Many credit repair customers are so excited to see the first one hundred point jump in their credit scores that they think they are done. There is nothing as important to your financial life as your credit. Every point counts. Don’t quit early! The early results are an indication of future possibility. We want you to see every bit of improvement available. You can do it!