Four Point for Successful Credit Repair

Checking and repairing your credit rating.

Want to get a free credit report from the three main credit bureaus?
Check your report carefully; many have mistakes, but the site will show you how to correct them. If your rating needs work, you’re not alone.

Four points for successful credit repair.

1. Resist the temptation to rush out and close credit cards
   
   It doesn’t help, honest. In fact, it actually makes your debt-to-available-credit ratio worse.
   If you think you’ll buy in six months or more, fine. But if you’re buying now, keep that card open.
   
   
2. Pay off debtors in this order:
   
   
   1. Settle any collection debts.
      
      

   2. Contact the collection agency and tell them you’ll pay the amount due if they withdraw all reporting from the 3 major credit bureaus. Ask to get that agreement in writing.

   3. Next, pay off past due balances that aren’t in collection yet.

   4. Now pay off recent (with 24 months) charge-offs and liens.

   5.  Next, pay off credit cards. (Don’t close them: see point 1.)  If you can’t pay them all, pay off those with a balance that’s over 50% of the card’s credit limit.

   6. Last, pay off collections and charge-offs for those creditors who refuse to withdraw reporting.

3. Keep and use those old credit cards.
   
   Most people have a 15-year old credit card in their sock drawer somewhere. Dig it up, use it use it at least twice a year, and pay it off quickly. Why? Because an old card demonstrates that you’ve had credit for a long time. Keeping it active gives your score an extra boost.
   
   
4. Be patient, persistent and polite.
   
   Make it easy for all those people at all those call centers to like you. Repairing your credit takes time, but you’ll never regret it–and you’ll save thousands of dollars in the process.