Fast Credit Repair Secrets
When I got looking into how to repair my credit I was told I ought to always pay my bills in full This was one of the best credit repair secrets I was given. Many people, agencies gave me that advice. This is not the truth. I found that my debt to credit ratio was really important and then found a simple process to repair your credit score.
First you must understand your debt to credit ratio as it is the most ignored factor in credit scoring. In simple terms it is what you have spent put agains what you have in total available.
For example:
Your available credit = $10000
Your current debt = $2500
Your debt/credit ratio = 25%
Why is it lenders prefer you don’t pay off your bills in full? For a start they make more money from interest charges, and by maintaining a balance you show discipline.
So here is just one way to use this ratio and a n outstanding balance to you advantage.
The easiest way is to use a sub-prime store card that has a report with a major bureau. These cards are often misunderstood because of the way they are marketed either by email or on the Web. The public often don’t trust the claims they make but some of them are genuine.
How does it work?
Get a card that you can only use to buy goods from a certain catalogue or a store online.
They will approve all-comers and you will get a line of credit for say $5000 that can be used exclusively at their store. When you make a purchase you will need to give a deposit and then finance the rest. So, for example you buy $1000 of stuff, put $300 down and make payments on the $700 balance.
The fast credit repair secret is that it is seen as like any other card by the credit bureau. So, instantly you have upped you limit, have a good debt-to-credit ratio and you are maintaining a balance. You will then receive pre-approved offers from other lenders who have got your details from the credit bureau. So you can do credit repair yourself.
