- Posted October 5, 2013 by
Getting Back in The Credit Saddle Again
So, you’re on the credit rebound, huh? Let me guess, once bitten, twice shy about getting another credit card and getting your credit scores back up again, right? With a little bit of information and some effort on your part to open and maintain new lines of revolving credit, you will be back on the positive credit side sooner than you think. You are probably thinking ‘Who is gonna want to give me a credit card with the credit that I have’ If you are thinking this way, maybe you are ooking for credit in all the wrong places. Maybe looking into too many places without having any direction. The sooner you take the first step back in the game of credit, the sooner you will begin to notice a movement in your credit. Now, you don’t want to go overboard and start applying for any and every card known to shoppers. And you definitely don’t want to wind up back in the same low-score situation again, either. You can even start by actually opening your mail including from creditors. You will be surprised by the power and freedom you may feel by addressing your obligations head on. Here is a step by step game plan back to good credit:
Take Credit Inventory
Look over your credit report to see how many open revolving credit accounts you currently have. 2-3 open revolving credit accounts is suggested to get you started on getting back to good credit. Revolving accounts are accounts that stay open and can be used even after you pay the balance in full, whereas a loan account is typically closed once you have paid off the balance.
2-3 Open Revolving Credit Accounts
If you do not have 2-3 open revolving credit accounts, browse the list of credit cards at creditcards.com for a card that is right for you and your lifestyle. Once you get to the homepage of the website, you will notice the list of credit cards with credit levels required. If you know you have ‘bad credit’, you may want to click on the ‘bad credit’ link to view a list of the credit cards that you will have a better chance at getting approved with.
Now that you have your 2-3 open revolving credit accounts, you want to make sure to get the best credit scores out of using them as possible. The magic number to remember is 19%! You can help yourself get some positive credit by keeping your balance to limit ratio on revolving accounts at or under 19%. For example, if your credit card limit is $100, then you want to keep your monthly balance at or under $19. When the balance of your card gets closer to the limit or over the limit, this will affect your score negatively. It will show in the decrease in your score (s) and ultimately show potential creditors that you are using your credit out of necessity rather than out of convenience whether this is truly the case or not. When the balance of a credit card goes over the credit limit of that card, you will notice an even bigger impact on the score. If this is the case with your any of your current open revolving credit accounts, the good news is that this is one of the easiest derogatory situations to work on to improve your score! You already have an open account, you just need to pay down the balance.
On Time, Every Time
What seems like the most obvious ways of maintaining a credit card positively, is overlooked by many consumers. Making your monthly payments on time every time will not only save you money on the interest but also credit points on your your credit score (s). Do whatever it takes to make sure your payment gets submitted on time. For more information on your current credit report, please Contact Austin office (512) 827-9969, toll free (888) 900-5138 or http://www.credit360consulting.com/.