Credit Report Self Help Repair
A credit report self help repair may be a good option for you. But don't' limit your efforts to simply removing negative credit items from your credit reports. When attempting to repair their credit, many consumers tend to only focus on the removal of inaccurate, outdated, or unverifiable negative credit items from their credit reports. However, if that's all you're doing, you may be missing out on a big opportunity to significantly improve your credit scores.
In addition to removing non-compliant negative credit information from your credit report, make sure you also consider adding new positive credit information to your credit report as well. Because once you negotiate your collection accounts and pay off your old debt, adding new positive credit can often help to boost your scores even further.
There are several ways to establish or rebuild your credit report. However, just remember to use your new credit accounts wisely and keep your balances low. The objective is not to necessarily accumulate more debt, but to increase your credit availability and rebuild your credit history to boost your credit scores.
For example, if you can qualify for a bank credit card, then apply for an unsecured bank credit card online. But instead of using your cash to purchase budgeted items like gasoline and groceries, use your credit card. Then use your cash to pay down your credit card balance to no more than 7% - 10% of your credit limit each month. That's right. Don't pay if off completely. Use it regularly but keep a low balance each month. This will help you to establish a positive payment history and increase your credit scores without accumulating more debt.
Credit Report Self Help Repair - Obtain a Secured Credit Card
If you can't yet qualify for an unsecured bank credit card, then apply for a secured credit card and use it to rebuild your credit report. You can obtain a secured credit card, even with poor credit. You will have to make a deposit into a bank account as collateral to secure the line of credit. Your credit card limit will be based upon the amount of money you deposit into your account. So if you deposit $1,000 into the account, your credit card limit will be established at $1,000.
However, even though your bank account balance is security for your credit card, you can still use it just as any other credit card. The new credit card account will be listed on your credit report and your timely monthly payments will be reported as well, thereby rebuilding a positive credit history.
First Progress has one of the best secured credit card programs available for rebuilding your credit. The interest rates are reasonable and they don't charge hefty upfront fees to get started. Simply apply online and open a bank account. Then deposit $300 to $3,000. The amount of your deposit will be the amount of your credit limit.
Credit Report Self Help Repair - Get an Installment Loan
The mix of types of credit on your credit report also affects your credit scores. The FICO credit scoring model likes to see a good mix of revolving accounts (e.g. credit cards) in addition to installment accounts (e.g. auto loans). So another way to rebuild your credit is to apply for an installment loan with a credit union.
Many credit unions will allow you to refinance your current auto loan at reduced interest rates. Or you may simply apply for a small installment loan and repay it within 6 months to 1 year. After making timely payments you can request another installment loan for a higher amount. So start with a $500 personal loan then pay if off and apply for a $1,000 loan and make timely payments to rebuild your credit history.
Again, the objective is not to accumulate more debt. So when you obtain the installment loan, deposit the money in a savings account and use the same money to repay the loan back within 6 months. It may cost you a modest amount of interest, but it will go a long way toward rebuilding your credit report.
Credit Report Self Help Repair - Become an Authorized User
Another way to rebuild a positive credit history is to become an authorized user on a close relative's credit card account. This is sometimes called "piggybacking". The way it works is your spouse, parent, or sibling contacts their credit card company and requests that you be added to their credit card account as an authorized user. Their credit account payment history will be added to your credit report. So as they continue to make timely payments on their credit card account, the positive payment history will be reflected on your credit reports.
Additionally, you gain the instant benefit of a long standing credit card account history immediately. It's as if you had the same account for years as well. This can have a significant positive impact to your credit scores.
Get credit information and decide for yourself who to trust to help legally improve your credit.
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