I was with a different credit repair company for six months and my scores have not moved. I do not have any open accounts, could that be the problem?
Effective credit repair requires more than just sending dispute letters to the credit bureaus. Your credit scores will not automatically rise when derogatory information is removed from your report. Scores are not naturally buoyant. Removing derogatory information will remove the weight that is holding your scores down, but your scores may continue to struggle.
You Need Open Accounts
It is imperative to your credit repair effort that you have open, active accounts in good standing. These open accounts will feed positive information to the credit bureaus each month telling them that you are to be trusted. This ongoing positive track record will be rewarded with higher scores – a message to prospective lenders that you are a good risk.
An Easy Cure
Your lack of open accounts is keeping you from credit repair success. The good news is that this is easily remedied. I suggest you open two new credit cards right away. If you cannot get approved for unsecured cards, just get two small secured credit cards. For each account you open you will make a small security deposit and be given a card with a limit equal to the amount of your deposit.
Once you have your new credit cards you must manage them properly if you want the best, and quickest, credit repair results. Make your payments on time, of course, and keep your balances down. It is best if you try to only utilize 20 percent of the available credit line. These new cards can take a little time to yield the full score benefit, but within six months you will be thrilled with the improvement in your scores!