Quick and Easy Credit Repair Strategies For Everyone
By: Jim Kemish
Submitted: 2009-07-29 15:04:19 | Word Count: 635
Anyone Can Do It
Some credit repair strategies take time. Others require a precise knowledge of the law. But there are others that can be implemented quickly and easily by anyone. If you want to boost your scores there is nothing from stopping you from taking action today. Here are our all time favorite quick and easy credit repair strategies for everyone!
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Pay Down Your Balances
Once upon a time it was enough to make your payments on time. This is no longer the case. The FICO credit scoring model is designed to predict the risk of lending money, and it places great weight on your credit card balances. If you run up your balances your credit score will be lowered as a warning to lenders that you may be a risky loan candidate. Depending on the overall content of your credit report your card balances can swing your scores by as much as 150 points.
Avoid Store Cards and Consumer Debt
Store cards and consumer debt, like furniture store loans, are of no positive value for your credit scores and may be a big negative depending on the age of the account and your balance. The FICO scoring model has a built in bias against this type of debt; it is typically expensive and may come with risky terms like a delayed repayment plan. There may be worthwhile discounts offered with this type of debt, but while you are working on your credit repair plan it’s best to steer clear.
No Credit? Get Secured Cards
If you don’t have open accounts you will not reach your credit score goal. Many people starting a credit repair program find themselves in this position. Removing errors from your credit report will lift the weight that is holding down your scores. But this is not enough. You must have positive credit to get the increase you want. If you can’t get regular credit cards get secured cards. They are the perfect credit repair tool. If you are rebuilding your credit from scratch two secured cards could be worth 100 points within six months.
Try Authorized Credit Cards
If you have a friend or family member willing to help you get your credit repair effort started they could add you to one of their credit cards as an authorized user. This is not a long term alternative to building good credit of your own, but it can provide a wonderful score boost and help you get on your feet. The donor’s card must have an excellent payment history, be at least two years old, and have a reasonably low balance relative to the limit. When it shows up on your report you will inherit the score benefit of the card.
Time Your Credit Activity Right
All new credit activity, with the exception of authorized credit cards, will lower your scores initially. You may need to open new credit cards for your credit repair program, but be aware that the first few months they show up on your report your scores will drop. This is true of everything from inquiries to mortgages. The reason is simple. The FICO scoring model sees new accounts as untested debt and inquiries as a looming threat. If you are planning an important purchase in the future think of your credit today.
When in Doubt, Reach Out!
You are not alone. If you are confused, or just too busy to focus on improving your credit pick up the phone and call a reputable credit repair service. A professional credit repair service will examine your reports, identify your strengths, deficiencies, and score optimization opportunities. Your credit is too important to ignore. Become proactive and you will reach your goals before you know it! Good luck.
Author Resource:-
Jim Kemish is the president and founder of Sky Blue Credit Repair, a leading credit repair service. Sky Blue Credit has been dedicated to providing intelligent customized credit solutions since 1989. Visit http://www.skybluecredit.com
