Living life with bad credit isn’t living life at all. Having bad credit is costing you money in one way or another everyday. In a nutshell bad credit severely handicaps your buying power. The mission of this article is to make the credit rebuilding process easy as possible for you. Continue reading as I unveil the power of credit rebuilding right before your eyes.
Despite what some experts may claim repairing your credit is not complicated. Let’s start with understanding your credit scores. Credit scores simply put gives a quick overview of the positive and negative aspects of your credit report. Many credit rebuilding systems on the market today only focus on the negative aspects of credit repair neglecting the positives. Even if you become a master at cleaning bad marks and dings on your credit report you still need to focus on building new credit.
The role of your credit score is to be a bias witness, and to testify giving the lender and overall view of who you are and if you are capable of repaying a loan.
Nine out of ten credit repair experts will advise you to get rid of all of your credit cards once you begin the credit repair process. As always I chose to go in the opposite direction. I advise my students in my workshop to keep two credit cards which is usually a Master Card and a Visa. These are called revolving accounts, and if used properly can increase your credit ranking by 150 points. The goal is to keep your credit card balances at 20% or below.
If you currently do not have any credit cards please don’t worry, this isn’t a problem. You can always get a secured credit card which works just as well. You cannot use a department store credit card because as far as credit rebuilding is concerned they are extremely harmful – but that’s another article entirely.
According to the latest Credit and Debt report individuals with credit cards end up destroying their credit because they do not understand the five ratios that affect their credit scores. The five usage ratios are as follows 20%, 40%, 60%, 80%, and 100%. If you were to use your credit card(s) with the usage of sixty percent it wouldn’t affect your credit score either way. The two tiers below sixty will increase your credit score and the two tiers above sixty will decrease your credit score. For example if you were to keep a balance of 20% on a new revolving account you could increase your credit score by 150 points.
It would be wise to arm yourself with the proper knowledge before preparing for the credit rebuilding battle. You must prepare for a two prong approach. The first prong is the process of establishing a new lines of credit. The second prong is removing all discrepancies from your credit report. By eliminating dings from your credit report you could increase your credit score an additional 300 points easily.
I recommend that you lead of your credit repair battle by establishing a new line of credit first since it is the easiest. You can accomplish this task in about a week or two. The process of removing errors from your credit report can be a little trickier and may require a good credit repair kit depending on your level of experience. There are a ton of credit repair systems that you can choose from, however I am proud to say that the credit repair system that I developed is number one for a reason… It works! You owe it to yourself to at least check it out.
Step-by-step system to help you with do it yourself credit repair