Credit Repair Everything Counts

Credit repair is not complicated. Your credit scores reflect the content of your credit report, both the positive as well as the negative. Many people in credit repair programs are so focused on the negative that they neglect the positive. No matter how effective you are at cleaning up derogatory information on your credit report, unless you take the time to build new positive credit your credit repair effort will languish.

Credit Repair Logic

The logic is easy. Your credit scores are intended to reflect the amount of risk a lender will face when lending you money. In the credit repair process you should think of your credit score as an impartial witness of your life, judging your ability and willingness to meet your obligations. The best way to impress this impartial witness is to offer proof of your willingness each and every month.

Revolving Credit Rules

The most powerful way you can offer proof of your credit worthiness and influence your credit repair progress quickly is with the proper use of revolving credit. If you don’t have any open credit cards, now is the time to open them. If your credit is currently too weak to get regular unsecured credit cards, just get secured cards. It’s easy and will do the trick.

Credit Repair and Secured Credit Cards

Secured credit cards are every bit as helpful for your credit repair as regular unsecured cards. It does not matter if the limit on these new cards is miniscule. Your credit scores will get the same benefit from a little secured card as it will from a high limit unsecured card, as long as you manage it in the right way.

Credit Card Management

Credit card management for score optimization is not difficult, but unless you know what to do mistakes are likely, and your credit repair project may even suffer when it could have easily succeeded. Timely payments are essential of course, but the real trick to credit repair success is to understand the relationship between your balance and the limit on the card.

Your Scores Are In Your Hands

The impact of your credit cards on your credit repair will depend almost entirely on your balances. This is always the case, but is even more important during the first year after a card is open. There are five ratios that will trigger score changes; 20, 40, 60, 80, and 100 percent usage. Sixty percent usage of a card will have a neutral effect, the two tiers below will increase your scores, and the two tiers above will reduce your scores. Don’t underestimate the impact; maxing out a new card can knock 150 points from your scores.

Credit Repair with the Right Credit

There are a few other important factors to consider when rebuilding credit. Not all credit cards are equal. Store cards are of little value for your credit repair. For undisclosed reasons, the geniuses behind the credit scoring formula have downgraded the benefit that accrues from store cards, and amplified the harm that can result from having them. Likely reasons include the fact that store cards are easier to get, usually have higher interest rates, and consequently may be an indicator of poor judgment on the part of the consumer. Hey, I’m just reporting the news! Do yourself a favor and stick with MasterCard, Visa, Amex, and Discover.

Your Credit is Alive

When it comes to credit repair there is no good substitute for new revolving debt. A new auto loan is helpful, but will not have the impact that a credit card will have. Credit cards are emphasized because they are open-ended and alive; each month they report they can reflect something new about your financial life. If you keep your balance low and make your payments on time it will tell the credit scoring model that you are living conservatively and within your means. If you max out a card it is interpreted as a warning of budgetary strain and potential default.

You are Not Alone

Credit repair is not a difficult process, but it requires a bit of know-how and even a dash of finesse. If you take your time to plan the credit repair process you will succeed and see your efforts rewarded beyond your expectations. And always remember that help is available. If you are in doubt pick up the phone and call a credit repair professional. You are not alone!

Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.

How to get a bad credit auto loan in the USA and Canada. Car loans for bad credit from Auto Credit Express

Speedy Credit Repair



Credit repair does not have to be a long tedious process. There are many things that can be done to boost your credit score right away. It is true that there are some wounds that only time will heal, but that is no excuse to ignore your credit. Become proactive today and I promise dramatic results within 120 days. Are you ready for credit repair in the fast lane? Let’s go!

Get Secured Credit Cards



If a rough patch has left you with no open accounts it’s time for credit repair action. You may not get approved for a regular credit card, but you can open a secured card without fear of rejection. Do it today. Here’s why. Your credit scores are based on both negative and positive information on your reports. Without positive information your credit scores aren’t going anywhere, but get a couple of secured credit cards and your scores will take off. Just make sure to manage your balances the right way.

Managing Balances for Credit Repair



Wow. This is really important. If you do everything else right in your credit repair project, but miss this one thing your scores will go the wrong way, and fast. Here’s the scoop. The latest version of the FICO credit score formula created by the geniuses at Fair Isaac Corp puts heavy weight on your credit cards balances. This is true of all of your credit cards, and doubly true of cards that are less than a year old. If you max out a new credit card you can lose up to 150 points on your credit score. It’s credit repair *******.

If you’ve read this far, I’ll assume that you really want to crank up your scores, so here is what to do. Use under 20% of the available limit on your cards. Got that? If you have a $1000 limit get your balance under $200 and watch your scores climb. By the way, you can use your cards as much as you want, but if you will need your scores you better get your balances down 60 days in advance because that is how long the creditor can take to report your reduced balance to the bureaus.

Authorized User Accounts Still Work

Here’s a little credit repair magic for you. Call your Mom or any sympathetic soul and ask them to add you to one of their credit cards as an authorized user. Fair Isaac Corp has managed to block brokered authorized user accounts from this benefit, so don’t bother purchasing these accounts online, it’s a waste of money. But legitimate family member authorized user accounts are credit repair gold. Here’s how it works. Once the account shows up on your credit report you will inherit the credit score benefit of the account history of the donors account. Assuming the account balance is low and there is a good payment history you should see a major and instantaneous jump in your scores. That’s credit repair in the fast lane!

Challenge Old Collections

Credit repair rule number one, don’t believe your eyes. This is especially true when it comes to collections. Collectors regularly buy and sell accounts. Most people don’t know that when a collector sells a debt to another collector they are supposed to withdraw their listing from your credit report completely; and I don’t mean listing the collection as paid. They are supposed to remove it entirely. All old collections are worth challenging through the credit bureaus. You may find that most of them just vanish. A nice credit repair outcome indeed.

Rehab Those Defaulted Student Loans

Do you have student loan problems? Are you in default? Are you hoping that years will pass and maybe you will be forgotten? It won’t happen. There is no statute of limitation for the collection of student loans. Over the last five years Sallie Mae has purchased so many collection agencies that they are now the largest collector on the planet. One day they are going to catch up with you, and so will all of the accumulated interest. There is a credit repair solution. Call the Student Loan Ombudsman. They are there to help you understand your rights. They are on your side. Call today: (877) 557-2575.

Call a Credit Repair Pro

Confused? If you want someone to help you understand your credit repair options just pick up the phone. Call a credit repair professional today. They will evaluate your situation and guide you through the process of cleaning up your reports and getting your credit scores in shape. Good luck!

Copyright © 2008 Ian Webber. All Content. All Rights Reserved.