4 Important Tips for Repairing Your Credit

By Scott Cooper

Scott is a regular contributor to my blog.

Credit repair does not have to be complex and can be boiled down two basic ideas: First, positive accounts will counteract the negative accounts. Second, time heals all credit. 

1. If you have positive accounts, keep them.  Do not close any accounts that have good payment histories as they will help balance the negative.  In addition, older, unused accounts with a zero balance may help improve your score.
2. If some of your positive accounts are credit cards, keep the balances below 50% by paying them down, or transfer part of the balance to another card so the balance does not exceed 50% of the limit.
3. If you do not have at least 3 accounts that report to the credit reporting agencies, open up more accounts.  With negative credit, opening new accounts may be difficult, so open a "secured" credit card.  With a "secured" credit card you will need to send the credit card company a specific amount of money, and then you will receive a credit card in that amount.  The new accounts will help you establish a positive credit history. 
4. WAIT.  While this may not seem like a plan packed with insider secrets, the fact of the matter is...time heals credit.  Remember, this is a marathon not a sprint.  If you maintain at least 3 accounts with perfect payments, your credit will progressively improve.

So, now you are 2 to 3 years in the future and what is the payoff for sticking to the plan?  Your credit will be good enough to buy a home again.  Don't let the setback of a short sale or foreclosure make you feel hopeless.  You have options, and with the proper course of action, you may become a homeowner again much sooner than you thought possible.

If you need further information, or would like assistance with credit repair, contact me:

Scott Cooper