Credit Repair Tips

LET'S GET STARTED
Here's our recommended action plan from your Credit Audit & Analysis Report

1) STOP APPLYING FOR NEW ACCOUNTS UNTIL WE ESTABLISH THE BEST STRATEGY TO IMPROVE YOUR CREDIT SCORE

The accounts that are included in your Credit Audit & Analysis Report are the "baseline" for comparison purposes
Opening new accounts may lower your credit score for up to a year
Please be patient until our process is finished

2) DO NOT CLOSE ANY OF YOUR EXISTING ACCOUNTS SINCE SOME OF THEM INCREASE YOUR CREDIT SCORE

Existing accounts that are in good standing contribute to a better credit score
Closing an account that has a long credit history could lower your score

3) PAY YOUR CREDIT CARDS DOWN TO 25% OR LESS OF THE AVAILABLE LIMIT

The balance owed on a credit card vs. the approved credit limit is referred to as the utilization ratio
If you have high balances, pay them down to 25% or less
Another effective strategy is to request a credit line increase so that your balance due doesn't exceed 25% of the new limit

4) ONLY SPEND 25% OR LESS OF THE AVAILABLE CREDIT LIMIT, EVEN IF YOU PAY THE BALANCE IN FULL EACH MONTH

Credit reports include the "high balance" along with the balance that was due at the end of each month
It is best to maintain both balances at 25% or less, so budget accordingly

5) PAY ALL OF YOUR BILLS ON TIME EVERY MONTH

Lenders like to see a good payment history along with several credit cards that maintain low balances
Always pay on time since one missed payment could lower your score dramatically and undo the progress that we're making

6) KEEP YOUR CREDIT MONITORING ACCOUNT ACTIVE THROUGHOUT THE CREDIT REPAIR PROCESS

Monthly credit monitoring allows us to see the changes to your accounts and your scores (click here for credit monitoring recommendations)
It is also helpful with identifying incorrect information, fraudulent transactions and potential cases of identity theft

ADDITIONAL TIPS

7) BEFORE PAYING A COLLECTION ACCOUNT, ALWAYS REQUEST A "PAY TO DELETE" AGREEMENT

Paid and unpaid collections can remain on your credit report for up to 7 years
Request a "pay to delete" agreement from the collection agency to ensure that the account will be removed when your payment is received

8) KEEP BOTH YOUR USED AND UNUSED ACCOUNTS OPEN AND IN GOOD STANDING

Continue using your open, active accounts wisely so that they will be reported as "good" credit (click here for Credit Facts)
If you're no longer using a particular credit card on a regular basis, it is helpful to make purchases from time to time and then pay it off in full (this prevents it from being removed from your credit history due to "Inactivity")
Over time, your credit scores will increase, allowing you to qualify for better loans and lower interest rates

9) ESTABLISH CREDIT WITHOUT GOING INTO DEBT TO INCREASE YOUR CONFIDENCE

Set up your utility bills to automatically get charged to one specific credit card
Then automatically pay the credit card in full directly from your bank account each month, either on or before the due date
Your credit score will start increasing while you're establishing a steady payment history 
When you're eligible, open another credit card account and use both of them to pay separate utility bills (having more than one account helps to increase your credit score)
Avoid carrying your credit cards or making other purchases until you are confident that you can use your available credit wisely

CONSIDER OTHER OPTIONS FOR ESTABLISHING GOOD CREDIT

If you are unable to get approved for a credit card, consider the following options which are also reported to the credit bureaus:

Authorized User - ask a family member or friend that has good financial habits to include you on one of their credit card accounts, and their monthly activity will also be included on your credit reports (you do not need a card for their account)
Secured Credit Card** - use a security deposit or savings account to guarantee your credit line, then maintain a balance of 25% or lower to maximize your credit score
Credit Builder Account** - make monthly payments to a lender and then receive the funds at the end of the loan's term, some lenders may have fees or require a membership

**Make all monthly payments on time and confirm that each lender reports to the major credit bureaus