Never pay off a collection account or charge off.
That's right, don't pay it.
The laws punish you if you do and Your FICO score will not go up.
Paid collections and paid charge offs are still derogatory credit and hurt your FICO score.
Many people are under the assumption that once they pay an account off, it is no longer hurting their score
or it is deleted from their report.
This is false.
The collection agencies will lie and tell you that they are required "by law" to report
the item after it's been paid. This is a lie. Nothing requires them to report anything. They will fight you tooth and
nail to keep the item on your report after you pay. The banking industry also pressures the credit bureaus to keep derogatory
information on your report. They do that because the banking industry uses credit reports to track down and locate consumers
who default on loans and disappear. They share that information with each other so they want that information out there.
Keep your Debt to Credit Limit Ratio @40% or below
What is a Debt to Credit Limit Ratio?
This is simply the ratio of debt used as a percentage of the credit limit. If you have a credit limit of
$1000.00 on a Visa card and you owe $800.00, you have an 80% Debt to Credit Limit Ratio.
Always factor the Debt to Credit Limit Ratio when closing out revolving accounts such as
credit cards. It is much better to have 5 credit cards with 20% of the limit than it is to have them all consolidated into
one card that is maxed out. The maxed out card gives you 100% Debt to Credit Limit Ratio and you score goes
down. The first example would have your Debt to Credit Limit ratio at 20% which is much better and will yield a higher FICO
score.
Don't Apply For Too Much Credit
Excessive inquires can really hurt your score.
Pay Your Bills on Time
Everything you do to clean your credit is undermined if you do not do this obvious but rarely followed rule.
Get Credit Cards
You Want At Least 3 Open Lines Reporting To Ensure Maximum FICO Score
We can help CLIENTS with BAD CREDIT!
To apply for credit cards go to our Links Page and apply.
These banks cater to clientele with Bad Credit!
You Will Not Be Turned Down!
