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6 Credit Repair Secrets

By
Real Estate Agent with Gold Shield Realty Group

Six Credit Repair Secrets

  

1.Pay down the cards that are maxed out first.

By charging more than 50% of your available credit on any one card points are deducted from your credit score.  

2. Don't reach your credit limit

Your credit use ratio (Total outstanding balance/total credit limit) is one of the ways creditors evaluates your score.  As a general rule, spend no more than 30% or your credit limit(s). (Individually and/or collectively)

  

3. Resist consolidating your debt on to one card

This can hurt your score.  Your total available credit will be reduced, which means you're more likely to be spending more than 30% of your limit.

  

4. If you must pay late, don't go past 60 days.

If you can't pay on time, make the payment as soon as possible thereafter.  Most lenders reports payments that are 60 days overdue, but some do not report payments that are 30 days past due, etc.

  

5. Try not to move.

Multiple moves affect your score negatively.  Each bureau has a different way of calculating risk and credit bureau's look at moving around as unstable.

6. Pay off debt rather than moving it around.

The Most effective way to improve your credit score in this area is by paying down your revolving credit.

 

Posted by

Veronica Lawrence

Your Trusted Realtor/Notary Loan Document Signer

DRE# 01841099

(951)704-3092

www.veronicalawrence.com

 

Show All Comments Sort:
Roxy Perry
US Preferred Realty - Casa Grande, AZ

This is good information as the credit reporting agencies are changing all the tme and reducing FICO scores for my customers in what seems to be 'overnight'.  Thanks for this!

Oct 26, 2009 06:17 AM
Susan Neal
RE/MAX Gold, Fair Oaks - Fair Oaks, CA
Fair Oaks CA & Sacramento Area Real Estate Broker

Hi Veronica - Good advice.  I would qualify #5 to emphasize that you say that moving around may be seen as unstable.  Clearly, if you have own your home for several years and just wish to relocate, you will not be perceived as unstable in the same way as a renter who moves frequently.

Oct 26, 2009 06:18 AM