While in our credit repair program, or any for that matter, you should adhere to the following to ensure the best results as well as set yourself up for success in the future. Some of these may not apply to your case and you should contact us if there are any questions.
Do not apply for any credit!
This will cause a hit on your credit causing your score to drop! The length of your credit history is averaged out and is contributed to 15% of your score. Applying for credit while purchasing a home or car could delay or even deny the process.
Pay your bills on time
Any mishaps will cause the rebuilding process to take longer making our efforts counterproductive. We can help you budget your finances to create good habits towards financial success!
Opt out of credit card offers
It can be tempting to open a credit card but they want to make money off of you, charging high interest rates, regardless of your credit rating. Go here to opt out of those annoying credit card offers!
Work to pay down credit card balances to 30% utilization
If your credit limit is $5,000 and you owe $3,200, you are well over the $1,500 max you should be at. Keeping your utilization below 30% will build your credit versus damaging it. Credit limit utilization is a 30% factor in your credit score and keeping the lowest amount owed is vital!
Do not close open credit cards
Closing any of your credit cards will damage your credit history significantly since time is not in your favor! Credit history is averaged out with all open credit (old and new) and factors 15% of your score. Having a card open for over 3 years factors positively versus all new credit.
You should have 2-3 open credit cards
Typically, the more credit cards you have open, the less amount of credit they will lend you. They want to make sure they get paid and having a $1,000 limit on 12 cards can be annoying. Having 2-3 open cards are plenty to boost your score. It’s also less you have to remember to payoff.
Paying off older collections could cause scores to drop
Paying on older collections may reinstate the debt’s statute of limitations making the repair process challenging to be able to remove this from your credit report. By paying this, you are basically verifying and admitting that you owe this debt.
Why are these important?
Credit is not taught in school and is one of the fundamentals of our society. Most people have to learn about credit by trial and error and it should not be that way. Credit is merely a tool to use to assist you in getting some of the best financing around, better jobs, cheaper insurance, and opens many opportunities. Following our instructions while in the program will help you yield better results.