Credit Repair Tips
How is your credit score determined? This is the breakdown:
- 35% Payment history
- 30% Outstanding debt
- 15% Length of your credit history
- 10% Recent inquiries on your credit report
- 10% Types of credit in use
If your credit needs some quick repair here are some suggestions:
- If you have extra cash, pay down as much of your debt as possible. The lower your ratio of current debt to available credit limits the higher your credit score will be.
For instance, it's better to have four credit cards each with a $500 balance and a $1000 credit limit then to have two $1000 cards at their maximum limit.
- If you don't have extra cash to pay down debt, try calling your existing credit card accounts and ask them to increase your limit, but don't actually use it. This will improve your ratio and your rating. (Note: Do not open additional credit card accounts to improve your debt ratio, because additional cards may hurt your credit.)
- Repeated inquiries into your credit standing will hurt your overall credit score so avoid opening new cards you don't need. The next time you get an offer for 10% off your purchase just for signing up for a store credit card, say no! You might save $20 now, but could lose much more than that later due to bad credit.
- Pay your bills on time by having them automatically deducted from your bank account or paid online before they are due. Being consistently late with payments is the easiest way to lower your score. Even if you can only swing the minimum payment, get the payment there before the due date.
- If you have a partner/spouse with good credit, have them add you to their card. You will get some of the credit for paying their bills on time as well.
Would you like some more ideas? We'll provide you with a FREE credit repair consultation. Just apply online and when we receive your application we will call you to set up an appointment. To get started, please click the button below: