The Foundation of Credit Repair Success
It's time to take stock. Where are you today? Are your finances stable enough to make timely payments on your obligations from this point forward? Credit repair can completely transform your credit and even put you on the path to long term wealth. But to be a good candidate for credit repair you must be able to keep up with your existing commitments. There is no point in making the effort if you are still slipping backward each month. If you can commit to timely payments from this point forward you are a candidate for genuine credit repair success!
Understanding the Nature of Credit
Credit repair success can be measured by the changes in your credit scores. Cleaning up all of the erroneous reporting issues from your credit report is essential, but in the final analysis it is your credit scores that will tell the tale. Credit scores are the result of everything on your report. As important as eliminating negative items may be, the presence of positive credit is even more important. In short, good credit scores require the presence of open and properly managed accounts. Managing your accounts for credit repair success is easy if you know how.
Your Accounts and Credit Score Optimization
As odd as it seems, you may make all of your payments right on time, for years on end, and still have awful credit scores. The good news is that a bit of knowledge can turn things around on a dime and lift your scores dramatically. There are two parts to this credit repair secret; type of credit, and account balances. When it comes to your credit scores not all credit is created equal. It is simple; mainstream credit cards, such as MasterCard, Visa, American Express, and Discover are good. Store cards and consumer credit, such as furniture store loans, are bad. If you have store cards or consumer debt you should work on paying it off. Now, let's chat about managing those good mainstream credit cards for credit repair success.
Revolving Account Management
If you don't have any good open credit cards, open them now. If you can't get approved for unsecured credit, just get a couple of secured cards. They are easy to get and you won't be denied. Once you have your credit cards you are in a position to really get your credit scores moving in the right direction. All you need to do is get the balances under twenty percent of the cards capacity. If you have a five hundred dollar card get the balance under one hundred dollars and watch your scores take off. Conversely, you need to know that a balance near the card's limit can knock as much as one hundred and fifty points off your score. If you have high balances, don't worry. As soon as you pay the balances down your scores will pop right back up (just allow time for the creditor to report the new balance to the credit bureau).
Whipping Your Credit Report into Shape
Credit repair rule number one: Give yourself the benefit of the doubt! Don't believe everything on your credit report just because it is in writing. If there is any chance a derogatory item is erroneous, dispute it! For goodness sake, it's your credit and it's important, so get pro-active, or hire a professional credit repair service to manage the process for you. There is plenty of evidence to support an aggressive approach to credit repair. Over seventy five percent of all credit reports contain errors. The majority of these errors cause consumers to pay premium interest rates on the money they borrow. Don't be victimized.
Two Handy Credit Repair Tips
Once you get into the task of cleaning up your credit report here are two handy credit repair pointers that can help you out. First, legally, collectors are supposed to withdraw their reporting of an account as soon as they sell the account or return it to the original creditor, but they rarely do. Challenge all questionable collections. And, second, credit card issuers have been known to underreport credit card limits. This underreporting has the same impact on your scores as if you had run up your balance. Proofread your reports carefully for accurate credit limits.
Don't be Afraid to Ask for Credit Repair Help
Reach out! If you don't have the time to manage the job of credit repair on your own call a pro. A credit repair professional will review every single detail on your report. They will be able to identify your credit score optimization options, find deficiencies in your credit, and dispute all of the questionable derogatory issues in an experienced and efficient manner. Good luck with your credit repair project!
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