Rebuilding for Credit Repair and Scores

Focus on Scores

Removing errors from your credit report is a wonderful thing, but it is only half of the picture. After all, your real goal is practical; you want usable credit that you can take to a lender. A clean report is important, but in the final analysis credit repair and scores go hand in hand. And good credit requires more than a clean report.

Accentuate the Positive

Your credit scores are based on both the positive and negative information on your report. Removing the negative information will not automatically cause your scores to improve. You must have something positive to include in your numeric calculation.

Re-Build Today

If you want good scores you need to have good, solid, open accounts. If you do not have open accounts, now is the time to remedy the situation, not sometime in the future after your credit report gets tidied up.

Timing is Everything

New accounts will take six months to deliver a significant benefit. Credit repair and scores building must go together. Open new accounts as your program is getting underway. Between the impact of the cleanup and the new positive accounts, you will have the credit report you have aspired for.

Using Secured Cards

For most people starting credit repair the best way to build credit is with secured credit cards. When you open a secured credit card you will make a small savings deposit which will collateralize your credit line. Once you have reached your credit goals you can apply for unsecured cards and gradually phase out your secured cards.

Proper Use of Your Cards

As an important footnote to the process of rebuilding credit for credit repair and scores, it is essential that you manage your accounts very, very carefully. Needless to say you should never make a late payment, as this will set back your progress dramatically. A single delinquent payment may cause your scores to plunge over 100 points. But in addition to timely payments you should watch your balances.

A Delicate Balance

High balances can cause your scores to fall just as much as a late payment! The good news is that as soon as you reduce your balances you will immediately recover, so no long term harm is done. But please be aware of the connection between your balances and your scores so that you are looking good when you need to be your best.

Copyright © 2010 Ian Webber. All Content. All Rights Reserved.