If you have not started your credit repair program yet, now is the time. Whether you are planning to manage the project yourself, or hire us to do the job, there is no time like the present. In many cases credit repair can produce quick results, but there are aspects of the process that are time-based, so the sooner you embark on your journey, the sooner you will find yourself with the credit you need.
New Account Timing
One of the most time sensitive aspects of credit repair is the rebuilding process. You will not reach your credit score goals if you don’t have any open accounts. So if tough times have left you with no credit it’s time to get a couple of new credit cards. Most people in this situation need to open secured cards. This is not a disadvantage. Even the smallest secured card can boost your scores dramatically. But it can take up to six months for these new accounts to yield the full benefit. In addition, the first few months that any new account reports your scores will fall. Credit repair cannot succeed without new credit, but plan your timing carefully.
Credit Card Balance Timing
Once you have new accounts it is imperative that you manage your balances properly. In truth, it does not matter if you max out your cards unless you need your scores to be at their best. Credit is a convenience and you can use it as needed, but be aware that there is a major connection between your card balances and your credit scores. If you want to optimize your credit scores you should get your balances below 20% of your limit. And you better plan on doing so at least 60 days prior to needing your scores because creditors can take this long to update your balances.
Mortgage and Credit Repair
If you are going to apply for a mortgage in the near term you need to be careful of everything. Don’t apply for any new credit for six months prior to making mortgage application. New accounts can depress your scores for the first 6 months; best not to take the risk. You also better start getting your credit card balances down. Those cards can swing your scores by over 100 points. And of course, if you are in our credit repair program we will evaluate all of the opportunities to boost your score and get your mortgage-ready.