Credit Repair 101   by J.R. Rowling

in Finance / Credit    (submitted 2011-09-28)

Do not apply for brand new credit cards - When you apply for new cards too briefly and too often, it'll lower your average account age. This could negatively have an effect on your score. Avoid establishing new cards until your credit rating has improved.

Do not close old credit card accounts - You wish to build a long history of paying your expenses and the use of credit responsibly. When you close your oldest bank card accounts, it will shorten your history. This will decrease your score. In fact, use one of your oldest bank cards once in a while and pay off the balance. That will show that you have an extended history and that you're accountable with the credit line.

Do not ask your creditor to cut back your limit - If your balance rises above 35% of your available limit, your score rating will move down. Be sure to not ask your creditor to reduce your limit. This might elevate your balance over 35% of your available limit.

Avoid consolidation - While you want to repay your debt, do not do this by consolidating the debt into one account if the consolidation causes the balance to rise above 35% of your available limit. As discussed earlier, if this happens your ranking will move down. Having a couple of credit lines with balances under 35% of your credit limit will be more helpful for your credit score.

Some issues take time - Be conscious that paying off collection debts or paying off delinquent debts is not going to get rid of the bad report from your report. It continues to be a part of your credit history. Your rating will strengthen through the years as you rebuild a superior credit history. Delinquent debts stay at the file for 7 years.

Avoid credit repair companies - Credit repair firms can not do anything you can't do yourself. They can't make the credit reporting agencies do away with or change the information in your report.

Shop for loans within a short time - Most credit ratings may not be affected by multiple inquires from creditors related to student loans, vehicle loans, or loan companies provided they are made within a brief timeframe. Most rankings will consider those as a single inquiry, with a view to not have much affect on your score.

Check your individual credit record - Contrary to popular belief, you can check your personal credit record as many times as you want. This will not negatively impact your credit score.

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