When I started to look into credit repair I was told that I should pay off all my credit card bills in full every month This was one of the best credit repair secrets I was given. A lot of different sources told me the same thing. Boy is this wrong!. I found that my debt to credit ratio was really important and then found a simple process to repair your credit score.<
>Firstly you have to get to grips with this ratio as it is almost always overlooked. In essense it is what you HAVE borrowed against what you CAN borrow.
For example:
Your available credit = $10000
Your current debt = $2500
Your debt/credit ratio = 25%
Why do lenders like to see you DON’T pay off all your billsWhy wouldn’t lenders want you to have a clean account every month? Because they make most money from interest not charges, and by keeping a balance you also show you are a payer.
So let me give you just one fast credit repair secret making use of the debt to credit ratio and maintaining a balance.
The single most cost-effective tool is the use of a sub-prime store merchandise card which reports to one of the major credit bureaus. These cards are often misunderstood because of the way they are marketed either by email or on the Web. The public often don’t trust the claims they make but some of them are genuine.
Waht is all about?
Get a card that you can only use to buy goods from a certain catalogue or a store online.
Anyone gets approval and you will get a line of credit of $5000 to be used only at that place. When you make a purchase you will need to give a deposit and then finance the rest. So, for example you buy $1000 of stuff, put $300 down and make payments on the $700 balance.
The fast credit repair secret is that it is seen as like any other card by the credit bureau. So, overnight you have improved you debt to credit ratio and are now holding a balance. You will then receive pre-approved offers from other lenders who have got your details from the credit bureau. So you can do credit repair yourself.