We hope that our tutorial has shed some light on the world of credit scores. At first glance it may seem mysterious, but, in fact, credit repair is a science. Do the right thing and your credit scores will improve. The outcome is certain. The effort is up to you.
Here is a quick review of the most important things you should do to get your credit scores up and keep them there.
Make Your Payments on Time:
Do whatever it takes to make your payments on schedule. Consider creating a budget. Investigate on-line bill paying. Start a savings account to provide a buffer for unexpected expenses.
If You Don’t Have Credit, Get Some:
You will not get the results you want from your credit repair without open active accounts. If you can’t get approved for regular credit cards, get secured cards.
Use the Right Kind of Credit:
MasterCard, Visa, American Express, and Discover are the best choice for building credit. Avoid store cards and consumer financing while you are working on credit repair.
Manage Your Revolving Balances:
Keep your balances down. You will get the best score benefit if you use less than 20% of the available amount of your credit cards.
Don’t Close Old Accounts:
Old accounts, if they are in good standing, are good for your credit score. If you decide to close accounts make sure that you have sufficient credit left over afterwards.
Limit Your Credit Inquiries:
While you are working on credit repair you should be cautious about all credit activity. Limit your inquiries to those that are necessary and instrumental to your credit improvement.
Open an Installment Account:
If you already have open revolving accounts you might consider adding an installment account, such as an auto loan, as part of your credit repair strategy. But only if the purchase is of practical use to you!
Think Like FICO:
Consider your credit decisions carefully. Your choices will have an impact on your scores. Learn to think like FICO and keep those scores up!