A Perfect Solution

If you have credit issues you may be considering credit repair. This may very well be the perfect solution to your problem and a way to make your credit report respectable again. But you should know that credit repair is not a magic fix; it will require some work on your part. And it may take some time.

It Is Up To You

A good credit repair service will do a lot, but their effort will focus mainly on sending dispute letters to the credit bureaus. They should also provide advice on rebuilding your credit and managing your existing debt, but the work involved in executing this aspect of your credit repair program will be up to you, and it is critical.

Overcoming Fear

Rebuilding your credit is essential if you want your credit repair effort to result in higher scores and usable credit. Many people shy away from rebuilding because they either believe that they will be denied or because they are just plain nervous about reentering the world of credit. The first fear is incorrect, and the later must be overcome.

Creating Positive Data

The reason that rebuilding your credit is critical to your credit repair success is that credit scores are based on the payment patterns and balance management information you provide to the credit bureaus via your accounts. If you do not have any open accounts the credit scoring software will not have any data on which to base a score. You must feed positive data to the bureaus each and every month.

Secured Cards and Credit Repair

It is true that, in the current credit environment, you are not likely to be approved for regular unsecured credit cards. This does not mean that you cannot get credit cards. Secured cards provide a perfect credit repair solution. The best of these cards provide virtually guaranteed approval, report to all three credit bureaus, and require only a small amount of money to get started.

Empowered By Action

If you have been burned by credit in the past, and are fearful about getting back into the credit world, you have to accept the fact that if you want usable credit for things that are not practical to pay cash for, like a house or auto, you need to rebuild. Opening two or three secured credit cards does not mean getting buried in debt. Once you take the step you will discover that moderate, careful use of debt can be empowering.

Manage Debt for Success

Managing your new credit cards for credit repair is easy, but the details matter. The credit scoring model will react most favorably if you make your payments right on time each month and keep your balances low. The key to optimizing your scores with new cards is to keep the ratio of your balance to your account limit under twenty percent.

A Simple Solution

Many people find it convenient to use their new cards to pay for small expenses that they would previously have paid in cash. This is a comfortable way to incorporate debt usage into your credit repair without causing any financial stress. Just use your new cards for the occasional tank of gas or bag of groceries. When you get the bill pay all but five or ten dollars, just to insure the account is always reported as active.

The Payoff

All of this may require a bit of effort, but the payoff will be significant. Opening new secured credit cards and managing them carefully can provide a dramatic boost of over one hundred points within six months of the new accounts reporting. Organize your finances, budget yourself carefully, and start rebuilding your credit today. The sooner you start, the sooner you will have excellent, usable credit again. You can do it!

Copyright © 2010 James W. Kemish. All Content. All Rights Reserved.

Author Bio: Jim Kemish is the president and founder of Sky Blue Credit Repair, a leading credit repair service. Sky Blue Credit has been dedicated to providing intelligent customized credit solutions since 1989.

Category: Finances
Keywords: credit repair, credit repair services, credit report repair, credit scores, bad credit