If you are reading this now Congratulations, you are on the way to a better credit future. Fixing your credit is a great idea but don’t forget the rest of the recipe. You also, need to rebuild your credit to make sure you have open, active and positive accounts. Here are 2 examples:
Scenario A: The consumer “A” has 5 collections, 1 auto repossession and 3 student loans that are in default and no positive accounts. The total negative accounts for scenario A = 9 negative accounts that are continuously being rated on their credit reports with No positive accounts. When this borrower fixes their credit with us and we remove all the negative reporting, The credit scores would be 0 or not available due to insufficient credit history. Consumer “A” would need to rebuild their credit with our credit rebuilding tools. We only suggest rebuilding with Secured and Unsecured credit Cards which are considered “Revolving Credit Accounts”. Such accounts show that you have available access to money. Therefore, the credit bureaus will score you based on how much you owe against your available credit limit as well as how you utilize your credit cards. The rule of thumb on using revolving credit card accounts are as follows: Do not Max out your credit cards or have your balance go over the credit card limit because these actions will take an adverse affect on your credit scores for over extending your self. The other types of positive credit you can build are installment loan accounts, such as: Home Loans, Car Loans, Student Loans, furniture store loans etc… These accounts will eventually help you build credit because they score you on how much debt you have on your credit which will drop your credit scores in the beginning. Also, they score you on how you make your payments as well. The credit bureaus will also score you based on what type of accounts they are and how old the accounts are if they are open. Closed accounts are not rated on unless they have a delinquency recorded such as a late payment status or collection or even a charged off status.
Scenario B: The Consumer “B” has a mixed credit profile of good and bad credit accounts. They have bankruptcy public record with 10 negatives reported under the bankruptcy and they have 2 new positive credit cards open and active. The total negatives on this file is 11 negative accounts and 2 positive accounts. In this Scenario, Consumer B: Would still need to build positive revolving credit accounts to have more positive accounts to be rated on. This may trigger a boost in their Credit Scores due to having good open active and available credit. In this case we will work on fixing the negative information on their credit and make sure that they maintain a good status on the positive accounts. For example, to maintain a maximum scoring potential on your Secured credit cards, Unsecured credit cards gas or dept. store credit cards you must not owe more than 30% of the revolving available limit as a balance and also never be late on your payments. The secret is to keep them active at all times and never close the open active cards because it will take away the revolving credit availability.
Always remember that having No Credit is considered Bad Credit! Here are some tools you can choose from to rebuild your personal credit profile.
Call (888)-655-6768 If you have any questions and or concerns