Debt Consolidation Credit Counseling In Phoenix

There is no secret formula for improving your credit score, but a good understanding of credit restoration strategies can help you get started on the path to a better credit score. It is possible to improve your credit score and get those negative items and late payments off of your credit record, but you have to go about it the right way. It will require commitment and motivation to succeed, but it is doable.

Did you know that you can raise your FICO score if you don't try quick fixes, but instead make a resolve to change behavior and make some wise credit decisions like paying your bills on time.

Timing of your payments is one of the factors that most influences your credit score. If you've missed many payments, or been more than thirty days late on a payment, it's very important to get current on your payments and stay that way. This is because recent payment history ? usually for about the last two years ? has the most impact on your credit. So start fresh now on your way to credit restoration. Another thing to consider is that if you have missed payments but didn't realize it, or if any of your accounts have gone to collections, this will stay on your report for up to seven years. This is why it's so vitally important to pay on time.

It's far easier to improve your credit score if you keep your total debt balances low in relation to your overall credit limit. It's ideal to keep your balances below 50% of total available credit, and 10-20% is even better. This helps raise your credit score, since lenders feel that people who max out their available credit are riskier borrowers. Having lots of available credit, but carrying low balances, is a good credit repair strategy.

In light of this, some people may need to open an additional credit line, even if it is a secured credit line. I know this may seem odd but your credit limit to balance ratio is a key component when trying to increase your credit score. Unfortunately for others you don't want to open another credit line if you have a hard time managing your finances. Take a look at your credit history to see if you can manage this type of risk.

Part of the reason you don't want to open an account just as a quick fix is that your average account age will get lowered. Creditors look at the length of time you have been managing credit accounts, and rapid account buildup (opening up several accounts close together) will make you a credit risk, since you will seem like a new and inexperienced user. By having too many open accounts, creditors may think that you will not be able to pay them if you decide to max out your accounts, depending on the type of credit your trying for.

So, it's usually best to apply only for credit that you really need. Make sure to use a few different types of credit products too, and don't have too many revolving credit cards. For example, it's fine to have a credit card or two, plus a student loan and an auto loan. This way, creditors can see that you are able to make consistent payments on installment loans, and at the same time manage revolving credit responsibly.

Even if you have made mistakes in the past, don't get too fearful. Now that you have decided to repair your credit, you can take the appropriate steps for your credit restoration. There are a wealth of resources dedicated to helping you get the better credit score you are looking for.

Whether you take a do-it-yourself approach or opt to use a credit repair service, you will be receiving high quality offers of credit sooner than you may think. Better credit means lower interest rates, better terms, and more money in your pocket. This gives you the flexibility to spend on more of what you need and want, instead of spending on high interest rates. This is why credit restoration is a winning pursuit.