You are well on your way to understanding the credit rebuilding process. The goal of this article is to make everything as easy as humanly possible for you. I am going to pull back the curtains and reveal some powerful secrets that I had only revealed to my students.
Forget about all of the mumbo jumbo that the credit repair experts tell you, the truth is the credit rebuilding process is not complicated. I will give you the exact same advice that I give to my students. Start at the root of the process which is your credit score. You must first understand the job of the credit score. This number gives lenders a birds eye view of the negative and positive aspects of your credit report. Most credit rebuilding systems that you find on the market today only focus on the negative aspects of the credit repair process and they totally neglect the positives. Even if you have a firm understanding of how to remove the toughest errors from your credit report you will still need to focus on building a new line of credit.
The role of your credit score is to give lenders a bias view of who you are and if you are trustworthy of repaying a loan. Your credit score will also determine what type of interest rate you will have on your loan.
Most credit repair experts will also tell you to get rid of your credit cards. I tell my students to embrace their credit cards. Revolving credit is a good thing and is one of the fastest ways to boost your credit score. I recommend my students keep at most two credit cards and do whatever they have to keep the balances at 20% or below.
No need to fear if you do not have any credit cards and your credit may be to bad at present for you to get one. You can always request a secured credit card, it is easy to apply for and it will serve the purpose. You cannot use those department story type credit cards. They are worthless and do nothing but damage your credit report.
Statistics show that most individuals with credit cards end up ruining their credit because they do not understand the five ratios that dramatically affect their credit scores. To put it simply the five usage ratios are as follows 20, 40, 60, 80, and 100 percent. Let me give you a real life example... If you were to use your credit card(s) keeping the balances at eighty percent your credit score would drop. If you were to keep your balances at twenty percent your credit score would go up approximately 150 points. The two tiers below sixty will increase your credit score and the two tiers above sixty will decrease your credit score.
You need a plan before starting the credit rebuilding battle. This battle is fought on two fronts. The first front is covered in this article the building of new credit. The second battle is fought in the past by battling with errors and corrections that need to be made to your credit reports. Making the appropriate corrections to your credit report 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.
Forget about all of the mumbo jumbo that the credit repair experts tell you, the truth is the credit rebuilding process is not complicated. I will give you the exact same advice that I give to my students. Start at the root of the process which is your credit score. You must first understand the job of the credit score. This number gives lenders a birds eye view of the negative and positive aspects of your credit report. Most credit rebuilding systems that you find on the market today only focus on the negative aspects of the credit repair process and they totally neglect the positives. Even if you have a firm understanding of how to remove the toughest errors from your credit report you will still need to focus on building a new line of credit.
The role of your credit score is to give lenders a bias view of who you are and if you are trustworthy of repaying a loan. Your credit score will also determine what type of interest rate you will have on your loan.
Most credit repair experts will also tell you to get rid of your credit cards. I tell my students to embrace their credit cards. Revolving credit is a good thing and is one of the fastest ways to boost your credit score. I recommend my students keep at most two credit cards and do whatever they have to keep the balances at 20% or below.
No need to fear if you do not have any credit cards and your credit may be to bad at present for you to get one. You can always request a secured credit card, it is easy to apply for and it will serve the purpose. You cannot use those department story type credit cards. They are worthless and do nothing but damage your credit report.
Statistics show that most individuals with credit cards end up ruining their credit because they do not understand the five ratios that dramatically affect their credit scores. To put it simply the five usage ratios are as follows 20, 40, 60, 80, and 100 percent. Let me give you a real life example... If you were to use your credit card(s) keeping the balances at eighty percent your credit score would drop. If you were to keep your balances at twenty percent your credit score would go up approximately 150 points. The two tiers below sixty will increase your credit score and the two tiers above sixty will decrease your credit score.
You need a plan before starting the credit rebuilding battle. This battle is fought on two fronts. The first front is covered in this article the building of new credit. The second battle is fought in the past by battling with errors and corrections that need to be made to your credit reports. Making the appropriate corrections to your credit report 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.
About the Author:
Learn more about credit rebuilding. Stop by Tim Beachum's blog where you can find out all about credit repair and what it can do for you.
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