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CREDIT EDUCATION – YOUR PART IN THE credit repair PROCESS

 So, you finally decided to get a credit repair company to help you fix your credit. Congratulations on taking the first step! Everything is all set now. You decide to lay back and relax because it seems very easy now that someone will help you achieve that excellent credit score. But wait, there’s more. Your part in the process doesn’t just end there.

It has often been misconstrued that all the efforts and responsibilities fall on the credit repair company, This is a common mistake. Whether you decide to fix your own credit or hire someone to fix it for you, your part in the process is very important and crucial for it to succeed. 

This is the reason why educating the client about his part in the process should be considered an essential element of the credit repair process, and not just an optional service. What is great about this is the same knowledge can be used to maintain your desired credit score long after the cumbersome credit repair process is through. 

Before we get there, let us first identify what goes to your credit score. Your credit score is divided into 5 categories. Each category weighs against your overall score. These are:

  • 35% Payment History 
  • 30% Credit Utilization 
  • 15 % Credit Age 
  • 10% New Credit 
  • 10% Credit Mix

By knowing how each category weighs against your overall score, you will better understand why your part in the process is as important and crucial as the credit repair process itself.

Here are some of the things to consider to help speed up the process:

  1. Stop applying for credit (Each time you do, it lowers your scores.)
  2. Do not close any accounts (This also lowers your score.)
  3. Pay your credit cards down to below 25% of the available credit line. This will make a huge positive impact on your credit score.
  4. Never spend more than 25% of the available credit line, even if you pay the balance off in full each month.
  5. Pay your bills on time! One missed payment will lower your score dramatically and undo all the effort put in fixing your credit.
  6.  In order to build your credit, you need to have open and positive reporting accounts. Keeping in mind that payment history is 35% of your credit score, the more accounts you have with positive payment history, the better your score will be. 

Additionally, you still have other options to help boost your credit score::

  • Have family add you to their cards as an authorized user  
  • If you have poor credit or no credit history at all, a credit-builder loan could help you establish a record of trustworthy financial behavior—without using a credit card.
  • Or simply apply for Secured Credit Cards

And remember to review and check your credit report regularly. You can get your free credit reports by calling Annual Credit Report at 1-877-322-8228 or go to AnnualCreditReport.com. It is highly advisable to check your credit report regularly to ensure its accuracy. 

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