subject: Unveil The Hidden Mysteries Of Credit Rebuilding [print this page] Uncloak The Mystery Of Credit Rebuilding Uncloak The Mystery Of Credit Rebuilding
by Tim Beachum
I never realized the effects of living with bad credit until I tried to buy my first home. It was that moment that reality set in for me. It is that moment that forced me to learn everything that there is to know about credit and repairing it. It was that moment that motivated me to start teaching people around the United States how to repair their credit. Now I am going to share some of those same strategies with you so that you can enjoy the buying power that you deserve.
Forget about all of the mumbo jumbo that the credit repair experts tell you, the truth is the credit rebuilding process is not complicated. I will give you the exact same advice that I give to my students. Start at the root of the process which is your credit score. You must first understand the job of the credit score. This number gives lenders a birds eye view of the negative and positive aspects of your credit report. Most credit rebuilding systems that you find on the market today only focus on the negative aspects of the credit repair process and they totally neglect the positives. Even if you have a firm understanding of how to remove the toughest errors from your credit report you will still need to focus on building a new line of credit.
The role of your credit score is to give lenders a bias view of who you are and if you are trustworthy of repaying a loan. Your credit score will also determine what type of interest rate you will have on your loan.
The majority of credit repair experts will advise you to rid yourself of all credit cards. I advise against this when lecturing my students. This is a huge mistake and as a credit rebuilding strategy you should have one to two revolving accounts. This is the fastest way to boost your credit score 150 points. The goal is to keep your credit card accounts balances at 20% or below.
If you do not own a credit card at this time there is no need to worry, I still have a plan for you as well. You can simply get a secured credit card which will work just as well. The only downside to this plan is that you have to invest a little money upfront. I guess now is a good time to tell you that department store credit cards are not good at all if you have any get rid of it immediately.
According to the latest Credit and Debt report individuals with credit cards end up destroying their credit because they do not understand the five ratios that affect their credit scores. The five usage ratios are as follows 20%, 40%, 60%, 80%, and 100%. If you were to use your credit card(s) with the usage of sixty percent it wouldn't affect your credit score either way. The two tiers below sixty will increase your credit score and the two tiers above sixty will decrease your credit score. For example if you were to keep a balance of 20% on a new revolving account you could increase your credit score by 150 points.
You need a plan before starting the credit rebuilding battle. This battle is fought on two fronts. The first front is covered in this article the building of new credit. The second battle is fought in the past by battling with errors and corrections that need to be made to your credit reports. Making the appropriate corrections to your credit report could increase your credit score an additional 300 points easily.
I would like to recommend the same credit repair kit that I have shared with hundreds of my students that all have achieved success at repairing their own credit. You owe it to yourself to check out the credit repair system that continues to change lives around the country - credit repair made easy.
