There are two forces that influence your credit scores, the negative and the positive. Cleaning up negative information is our job. Building positive credit is all about you. Both are integral parts of a successful credit repair program.
100 Points for a Start
Seeing negative information get deleted is an exciting part of the credit repair process, and a clean report is a joy. But if you fail to build new credit, your scores are likely to languish needlessly. Want some incentive? Two new accounts opened subsequent to a period of bad credit can be worth 100 points within 6 months. Think about 100 points. Where would you like your scores to be in 6 months, at 600 or 700?
Now is the Time
The sooner you start, the sooner you reach your target. Time sure flies, doesn’t it? It may take 6 months for new accounts to deliver their credit repair payload. But 6 months will be gone before you know it. The sooner you start, the sooner you will be enjoying your new credit score. Just put it on your to-do list and make it happen.
Open the Right Accounts
You want the biggest bang from your credit repair effort, and not all forms of credit will deliver the same benefits. FICO has very definite preferences. MasterCard and Visa are the best way to get where you are going. Forget about store cards. They may be easy to open, but you will be disappointed with the result, if not downright upset. If you are concerned about getting denied, go with secured cards.
The Best Secured Cards
Secured cards are the perfect credit repair tool. No stress. You will not get turned down. The best of the breed are cheap, easy to get, report to all three bureaus, and do not report as secured (who needs that?). Secured cards are collateralized. This means that you will open a small savings account for each card you get. Expect to need $300 for each card you open.
Balance Management for Success
The big caveat with new credit is to make your payments on time. Whatever you do, please make your payments on time. But your balances will have a giant influence on your scores too. Run your balance up and your scores will fall. Keep your balance down and your scores will rise. It is a see-saw. If you accidently (or out of necessity) max out a card, no worry. Just pay it back down and your scores will recover right away. No lasting harm done.
Timing and Your Scores
If you are planning an important purchase, such as an automobile or a home, you need to get your credit repair timing right to insure that your credit scores are as awesome as then can be when you need them. Do not get blindsided by bad timing. It can take up to three months for your creditors to report balance information to the credit bureaus. Plan ahead and get those balances down in advance. And keep them there until your deal is done.
Do Not Go to Zero
FICO is funny. High credit scores do not just reflect an on-time payment history. High scores reflect a pattern of borrowing and repayment that categorizes you as a skilled and active debtor. If you let your credit cards go to zero and sit in the drawer, soon FICO will start to depreciate the contribution they make to your scores. For credit repair success flex those credit muscles and use those cards.