Regardless of how damaged you may think your credit is there is still time for repair. It may seem daunting when looking at things like judgements, bankruptcies, collections, but the time for credit repair is now. Make sure to follow the advice of your credit repair professional and avoid these 5 most common mistakes when doing credit repair to maximize the value of your program.
Applying for loans prematurely
It can be exciting to see your score climb, and it is very natural to want to go out and start applying for credit to purchase the things you have been wanting, however, doing so prematurely can hamper the efforts of your credit repair firm. It is wise to wait until the program has run its course in order to maximize the efforts your credit repair agent is putting into your credit. You can risk many inquires which accounts for ten percent of your score.
Failing to budget properly
Once your credit repair has started you also need to look at your own budget and decide where to modify to avoid any more damage to your credit. It’s a good habit to get into now as once your credit is repaired you will are already in the habit of on time payments thus your score will stabilize. This is a big one as payment history accounts for 35% of your score.
Maxing out your credit cards
When your credit cards are above 90% utilization they are effectively maxed out. This is damaging to your score due to credit-utilization ratio. Which are amounts oud to credit limits. If you can factor in your budget to include paying down credit cards this will make a long term positive impact. Try to aim for balance of 25% or less on each of your cards.
Closing credit cards
It may seem instinctive to close out that credit card you just paid off, but in doing so it can actually hurt your credit. This happens for multiple reasons but primarily it raises your credit utilization, and it also closes out an aged trade line. Make sure to keep it active and in doing so you are maximizing your credit. A good idea is to purchase one gasoline fill up a month and pay it off before the balance comes. This will keep the card active and account healthy overall.
Stopping credit repair prematurely
This one is important because it can be tempting for us to stop credit repair when we see our score climb. Conversely it can be just as enticing to stop credit repair prematurely when we are not seeing any score increase. Credit Repair is a process, and as a process it must run its course. If it is stopped early that interrupts the course of action on your journey to better credit. The average customer sticks to a program for 6 months. Everyone’s credit is unique to that individual. Your credit repair agent will guide you into what works best for your unique situation. Credit Solutions is a Bonded credit repair company and has a reputation of excellence with over 10 years in business and nationwide service.
Call to speak to a credit repair agent today and get back on the road of good credit.
Toll Free 866-991-1113