Credit Reports

You did it…after months of hard work your debt is PAID OFF! You just finished splurging with some of the money that had been going to paying off debt, ate out for change, done cleaning up after your celebration party, and the fireworks put away. You nearly skipped on the way to the bank to apply for a loan. You are get a credit check to pre-qualify for a loan and are shocked…your credit score is still in the toilet! You can’t believe your eyes…you feel faint…the room is spinning…you wonder from the fog…WHAT HAPPENED!

What happened is that no one told you your credit score is calculated from your credit history. That means that having your debt paid off today or even for a few months isn’t enough time to change your credit score. Remember those people telling you to start ahead of time to repair your credit when you first started talking about wanting to buy a house? They had good reason to give you that advice.

Paying off debt is only one step towards a higher credit score and the benefits that go with that. To raise a credit score the following must also be done:

• Limit applications for anything that will pull your credit report
• Pay bills on time and in full
• Use your credit card/s once a month
• Pay off credit card balance monthly
• Keep credit card debt under ½ the available credit
• Monitor statements to assure there is no unauthorized activity
• Have 2-3 credit cards (no balance or very low balances)
• Stick with a credit repair plan and have self-control

You have accomplished a lot so far by eliminating your debt. Don’t stop now…you CAN raise your credit score. Set goals, meet them, reward yourself, and then on go forth and conquer more credit repair goals! The prize will be your high credit score and the pride that accompanies such an accomplishment.