A quick summary of practical credit scoring repair tactics you can use.
The first part of credit score repair involves 1) understanding credit scoring and how to skew the credit rating system in your favor, and 2) using credit repair techniques to clean bad credit.
The first part, a practical application for everyday scoring health, is simple:
- keep credit card balances below 20% if you can, or 40% if that isn’t possible;
- don’t apply for credit unless you need it, as inquiries can hurt your score;
- pay your bills on time, as bad credit affects a credit rating in a big way;
- keep existing credit card accounts open, since length of credit history affects a score positively;
- vary your accounts by having both unsecured credit (such as credit cards), and secured credit (such as installment loans; e.g. auto loan);
- use your credit regularly;
- use different credit cards each month, and
- have limits on credit cards raised as high as possible.
For a more expanded explanation of credit scoring, see my article on credit ratings.
Repairing bad credit report entries.
Of course the aforementioned tips are great for practical credit scoring health, but what about bad credit entries on a credit report? Most bad credit must be removed from a credit report, especially unpaid entries, recent entries, and any court and collection entries. Notice I said “most” bad credit, because some bad credit accounts may be holding up a score by virtue of its age more than it is hurting.
As you can see, credit score repair begins by first understanding credit scoring and then making lifestyle choices to skew the algorithms in your favor. It’s followed up by a vigorous self credit repair plan to delete certain types of bad credit from your credit report.