Exciting New Credit Repair Tips for 2013

By Jim Kemish

 

Get Excited About the Prospects

 

The economy is shifting in a positive direction. Employment prospects are improving, real estate values are stabilizing, and economic indicators across the board are looking up. And interestingly, credit repair opportunities have never been so good. Fair Isaac, the creator of the popular credit score, does not reveal the nuts and bolts of their methods, but it is clear that along with a decrease in general debt default rates, the FICO formula is more forgiving of the past, and more rewarding of good behavior. Now is the time to leverage your credit repair efforts for spectacular results.

 

Open New Accounts

 

One of the most interesting and exciting opportunities is the big bang you can get from opening new accounts after you have moved past a period of derogatory credit. FICO, it seems, is putting extra weight on these new accounts which demonstrate your capability of getting back on your feet and back in the action. It is still true that the first few months after opening any new account your scores will be compromised, but give it six months in all and your will be rewarded with as much as a 100 point bump.

 

Reduce Your Revolving Balances

 

Whether you are managing older existing accounts, or the new accounts you just opened per the paragraph above, if you do not want your credit repair effort to stall out, you must keep you balances down. To really get the most out of your credit cards use less than 20 percent of the card limit. This cannot be emphasized enough. If you run up your balances you may kill your score. As potent as a new account can be, the knife cuts both ways, so use your accounts, but keep those balances low.

 

 

 

 

 

 

 

 

 

Examine Your Credit Report

 

While you are working hard to rebuild and manage your credit, you must make sure there are no mystery items damaging your scores. Credit reports have errors, it is a fact. It is also true that unless you find them, no one else will either. Examine your reports very carefully. Take the time to do it right. Grab a highlighter and mark up every questionable item you find and get ready to challenge them with the bureaus. If the job is too daunting, contact a good credit repair service to do it for you. Either way, do it.

 

Dispute Your Errors and Dispute Again

 

The secret to cleaning up your credit report is patience. The bureaus manage massive amounts of information and lots and lots of disputes. Your dispute may not get the attention it deserves the first time around. If you do not get the answer you want, dispute again, and this time speak up. Let them know that the errors are causing you stress and potential financial harm. Do not be put off even if you get a letter back telling you not to dispute it again. It is your right.

 

Negotiate Your Old Debts

 

The economic wreckage of the last decade has left lots of collectors very hungry. Once you clean up your credit report, take the next step in the credit repair process and get to work on the legitimate debts that remain. Save enough money to make a reasonable offer and reach out to the collector. Keep your cards close to the vest and be resolute. Collectors can be rude, but if you start with a very low offer and play it cool you should be very happy with the final results.

 

Increase Your Account Limits

 

This concept may seem crazy for so many people that had their revolving account limits lowered in the last decade. But times change, and as default rates in general have declined credit card companies have become more eager to do business. Once you have taken all of the steps above and your scores are looking up and you have cleaned up your reporting errors, now is the time to call your lenders and boldly ask for higher limits. What is the point? The lower your balance is relative to your limit, the higher your credit score. And with higher limits, when you need to use your card you are less likely to cripple your scores.

 

 

Copyright © 2013 James W. Kemish. All Content. All Rights Reserved.

 

Jim Kemish is the president and founder of Sky Blue Credit Repair, a leading credit repair service. Sky Blue Credit has been dedicated to providing intelligent customized credit solutions since 1989. Jim is a graduate of New York University and holds a degree in economics.

 

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