Too many people worry about credit bureau disputes and ignore everything else. That is a very big mistake. You must plan credit repair carefully and if you want to get the best possible results, you must have a plan and be ready to take action. It’s always nice to see bad credit removed from your credit report but that’s not the only way to improve your credit score.
Opening new credit accounts is an essential part of the credit repair process. A few new accounts if managed carefully can be extremely valuable. But they could lead to disaster if not managed properly. Always make your payments on time and avoid running up the balances. Maxing out a new credit card could cost you over 100 points on your credit score. New credit cards are a good tool but ‘avoid store credit cards’ until your credit is repaired. They trigger an automatic penalty by FICO and with an inquiry. Keeping your balances in check will go a long way in repairing your credit. Going up to the max on the accounts and still making every payment is not good. Optimally you should keep your balance under 20 percent of your credit limit. This gives you the best chance of increasing your credit score.
For more helps with fixing bad credit, call us today to speak with a credit expert.