Credit repair can clean up your credit reports and insure that your credit scores are at their absolute best. If you are in our credit repair program we will take care of the credit bureau disputes and provide the guidance you need to re-build your credit, manage existing debt, and structure existing credit in the best possible way. But you must do your part.
Organize Your Payments
From this point forward you must make your payments on time. The more recent a derogatory item, the more of an impact it will have on your credit scores. You are making an investment in credit repair services, so make sure to preserve all of the progress you make by managing your debt carefully.
Reduce Your Revolving Balances
Now is the time to start reducing your revolving balances. The FICO scoring model places great emphasis on the relationship between your balances and your limits. Ideally you should get your credit card balances under 20 percent of the limit. For example, if you have a $1,000 limit your balance should be under $200. Your FICO scores will reward you.
Build Good Credit
If you don’t have any open credit cards, now is the time to rebuild. To get the most out of your credit repair project you should not put off opening new credit. If you cannot get approved for regular credit cards, go ahead and get secured cards. It’s easy and you won’t get denied. Two cards is the optimal number for rebuilding credit. The limit on the card is not important; a small secured card will help your scores as much as a card with a high limit. Just make your payments on time and keep your balances down.
Avoid Store Cards and Consumer Debt
The FICO scoring model discriminates against store cards and consumer debt. There are good reasons for this. This type of debt is typically inferior and often comes with higher rates and fees. In addition, consumer debt, like furniture store financing often offers no-payment options that will mature into a budget-bomb when payments come due. Hence, this type of debt will depress your FICO score. While you are in credit repair mode it is best if you open this type of debt, and if you already have it, try to pay it off.