Credit Repair Techniques - Part 2 of 3

Credit Repair Techniques - Part 2 of 3

Now that you have ordered your credit reports and mailed in your dispute forms lets go on to the next step in the repair process.

First of all DO NOT APPLY FOR ANY MORE LOANS during the repair process. This will only result in additional inquires that will result in lowering your credit scores even further.

Secondly DO NOT PAY OFF YOUR COLLECTIONS I have seen where this has actually resulted in Lowering a persons credit scores. 

Finally it is best to have no more than 3 or 4 open credit cards at any given time. This includes Master Card, Visa, Discover Card, American Express, Shopping Store Cards and Gas Station Cards. Pick out the 3 or 4 you plan to keep and close the rest.

The credit cards you want to keep open are the ones with the highest credit limits and the lowest interest rates.

Once you have the 3 or 4 cards you have chosen to keep open look at the balances compared to the credit limits. It is good to have a balance less then 50% of the cards credit limit and bad to have a balance over 50% of the cards limit. So begin paying down the cards with balances in excess of 50% of the cards limit. You mau also call and ask for an increase in the cards limit. This may result in getting you under the 50% rule for that particular card.

I have seen this increase a persons credit scores by over 100 points in 30 days and the best part is it cost little or nothing to do it.

Stay tuned for the final stage of my Credit Repair Techniques. Part 3 of 3 will be for those who have already taking steps 1 and 2 who have credit issues beyond the norm and whom require professional help to resolve.