We make the mistake of thinking that taking out derogatory items on our credit report is the end of an effective credit repair process.
I am sorry to say that that is only the beginning.
If you stop there, you will be doing more harm than good to your credit report.
If you have limited credit, the removal of any information might leave the FICO scoring model with little to work with thereby dragging you back to what you were trying to avoid - Low credit scores.
If you take out derogatory items from your credit report, you have to replace it with new credit if you are looking at rebuilding your credit on the long run.
Fortunately, for those undergoing the credit repair program, recent activity on your credit report has more positive impact on your credit scores than past activities.
Therefore, you have an opportunity to rebuild your credit no matter what.
All you have to do is to prove that you are responsible with the credit accounts you have and show that you have the ability to repay your debts.
You should get a new credit account after you are done cleaning your credit report from unwanted items.
One of the perfect solutions to little or no credit is to obtain secured cards.
A secured credit card requires that you deposit a small savings amount with the lending institution.
You will then be offered a line of credit that is equal to the amount you deposited.
Most secured cards will require that you deposit about two hundred to three hundred dollars.
It is important that you learn to manage your secured cards effectively.
Remember that with every purchase you make and every payment to give, you are communicating responsibility.
You have to make sure that you make your payments on time and learn to manage your balances.
If you make a wrong decision using a secured card, your scores will dip down drastically.
But making wise decisions using these cards will go a long way in improving your credit scores big time.
In most cases, secured cards that have been managed successfully are changed to the regular unsecured cards and the savings deposit is returned.
I am sorry to say that that is only the beginning.
If you stop there, you will be doing more harm than good to your credit report.
If you have limited credit, the removal of any information might leave the FICO scoring model with little to work with thereby dragging you back to what you were trying to avoid - Low credit scores.
If you take out derogatory items from your credit report, you have to replace it with new credit if you are looking at rebuilding your credit on the long run.
Fortunately, for those undergoing the credit repair program, recent activity on your credit report has more positive impact on your credit scores than past activities.
Therefore, you have an opportunity to rebuild your credit no matter what.
All you have to do is to prove that you are responsible with the credit accounts you have and show that you have the ability to repay your debts.
You should get a new credit account after you are done cleaning your credit report from unwanted items.
One of the perfect solutions to little or no credit is to obtain secured cards.
A secured credit card requires that you deposit a small savings amount with the lending institution.
You will then be offered a line of credit that is equal to the amount you deposited.
Most secured cards will require that you deposit about two hundred to three hundred dollars.
It is important that you learn to manage your secured cards effectively.
Remember that with every purchase you make and every payment to give, you are communicating responsibility.
You have to make sure that you make your payments on time and learn to manage your balances.
If you make a wrong decision using a secured card, your scores will dip down drastically.
But making wise decisions using these cards will go a long way in improving your credit scores big time.
In most cases, secured cards that have been managed successfully are changed to the regular unsecured cards and the savings deposit is returned.