If a rough patch has left you with no open accounts it ' s time for credit repair action. You may not get approved for a regular credit card, but you can open a secured card without fear of rejection. Do it today. Here ' s why. Your credit scores are based on both negative and positive information on your reports. Without positive information your credit scores aren ' t going anywhere, but get a couple of secured credit cards and your scores will take off. Just make sure to manage your balances the right way.
Managing Balances for Credit Repair
Wow. This is really important. If you do everything else right in your credit repair project, but miss this one thing your scores will go the wrong way, and fast. Here ' s the scoop. The latest version of the FICO credit score formula created by the geniuses at Fair Isaac Corp puts heavy weight on your credit cards balances. This is true of all of your credit cards, and doubly true of cards that are less than a year old. If you max out a new credit card you can lose up to 150 points on your credit score. It ' s credit repair suicide.
If you ' ve read this far, I ' ll assume that you really want to crank up your scores, so here is what to do. Use under 20 % of the available limit on your cards. Got that? If you have a $1000 limit get your balance under $200 and watch your scores climb. By the way, you can use your cards as much as you want, but if you will need your scores you better get your balances down 60 days in advance because that is how long the creditor can take to report your reduced balance to the bureaus.
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