Hi, I’m Richard Kramer, Founder of Credit Repair-Pro and for 36 years a leading expert in the Credit Repair Service industry.Once a client’s credit repair is complete there is still some basic do’ and don’ts I need to teach them. Here are a few that I hope will help you too!
Do: Understand that the removal of negative accounts and/or the addition of new accounts can
temporarily reduce your credit scores. Pay attention to what is in your credit reports and good scores
Do: Keep your payments current. A single 30 day late payment can immediately have a negative
impact your credit score by 60 to 150 points. Multiple 30 day late payments show prospective lenders
that you cannot manage your finances or you are over extended and cannot maintain your accounts at
their current status. A 60 or 90 day late payment can affect your credit scores for a much longer time;
try to avoid any late payment, but especially any 60 or 90 day late payment. Late payments are one of
the most harmful items on your credit reports.
Don’t: Apply for too much credit, or open too many new accounts too quickly, these actions will cause
your scores to decrease. You have two things going against you “new accounts” and “credit inquiries”.
Both will reduce your scores for at least 6 months. You don’t need a lot of credit to have good scores so
don’t overdo it. Having multiple credit inquiries—especially for credit cards or personal loans—shows
lenders and credit bureaus that you are desperate for credit or cannot manage your credit. This will
hurt your credit scores.
Do: Keep your balances low. Keep the balances of your credit card accounts below 25% of the credit
limits available as much as possible. This is referred to as “card utilization rate” and affects your scores
by approximately 35%. The theory is that if a consumer maintains a high balance to credit limit, the
potential risk of default increases. NOTE: The balance reported to the credit bureaus is based on the
statement close date and not the payment due date.
Don’t: Have more than two or three credit cards. Use only one card on a regular basis for your daily
expenses. Keep the other card at a zero balance.
Do: All of your credit cards need to be used occasionally. Inactive accounts are not considered in your
credit scores. I recommend that charge cards be used at least once every ninety days then promptly
paid off before the end of the billing cycle.
Don’t: Close credit card accounts. If you already have lots of accounts, keep them open and use them
at least once every ninety days, then promptly paid off before the end of the billing cycle. Closing
positive accounts will hurt your scores.
Do: Instead of opening new credit accounts ask for credit line increases on the accounts you have. This
will improve your “card utilization rate” thus increasing your score. As long as you are following the
rules of keeping your balances low you should be able to get a credit line increase every six to eight
Do: Use a good credit monitoring service that gives you all three credit reports and all three scores. Be
pro-active with your financial life and stay on top of your reports every month. Be sure balances are
reporting correctly and that everything on your reports belong to you!
Do: Have questions? Contact me directly at [email protected] Talk soon….RK