Credit Repair Dos and Don’ts

| October 30, 2011 | 0 Comments
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Everyone wants to have a good credit standing in order to avail good things that come along with having good credit rating. However, the current financial situation everywhere leads to increase in expenses with little changes or no changes in income. When this happens, the credit rating suffers, and you will need to undergo a credit repair. Below are some of the dos and don’ts when repairing a credit.

Do not apply for new bank credit cards

Application of new bank credit cards will decrease your account average account age. This will have a negative effect on your credit rating and score. Do not apply for new bank credit cards until your credit score improved.

Do not close old credit card accounts

Closing old bank accounts is going to shorten your credit history, and would decrease your credit score. If you use your oldest credit card once in a while and pay off the balance, then it will show that you have a long credit history. Also, it will show you are accountable with the credit line on the account.

Do not ask your creditor to scale back the credit limit

If the balance on your account rises above your credit limit, then your credit score will go down. Make sure you do not ask the bank to reduce your credit limit as this may elevate your balance over your available credit.

Avoid consolidation

Do not use debt consolidation if this will cause the balance to rise above your available credit limit, and will cause your credit score to go down. A desirable credit line balances are 35 percent below the credit limit.

Things take time

Always remember that delinquent bills stay at the record for 7 years. Hence, paying off collection debts will not take away your negative record instantly. Your score will improve through the years once your rebuild a good credit history.

Avoid agencies to repair your credits

You can also do the things that these companies can do. These companies cannot remove or change in the information, in your credit report.

Check your own credit record

There is no harm if you check your own credit record as many times as you wish. Doing so will have no impact on your credit score.

Credit repair is something that everyone should be aware of. The better knowledge people have regarding repairing their credits the better will be their financial rating.

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Category: Bad Credit Home Loans, Bad Credit Score Credit Cards, Blog, Collection Accounts, Credit Resources, Student Loan Default

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