credit-repair-and-credit-cardsCredit Repair and Credit Cards

I can’t even begin to tell you how many questions me and my staff get’s on a daily basis in regard’s credit repair services and credit cards. As you may already know here at Garranteed Solutions our goal is to help our client’s repair their credit in a way that they are able to get a home loan approved. With the being said positive credit such as credit cards in an important piece to the puzzle.

If you goal during credit repair is to simply work on getting negative items removed from your credit reports, our credit repair services may not be the best solutions for you. You may want to go with a company like lexington law that will dispute 2-4 accounts for you every month and continue until you cancel their services. Here at Garranteed Solutions our focus during credit repair is creating homeowners so we not only dispute negative accounts, we also help with building and maintaining positive credit, budgeting and saving and finally debt settlement assistance. All of the above may be needed to successfully restore credit reports and credit scores.

Credit Repair and Your Credit Card Balances

Now this is going to be the most important section of this blog post about .  Depending on how aggressive you want to be on your credit repair, a credit card may or may not be the answer for you. 30% of a credit score is based on the credit limit to balance on credit cards. If you do not have a credit card on your credit reports almost one-third of your score potential is not being addressed. Credit repair and positive accounts on your credit reports is key.

Now the trick to having a credit card on your credit reports and to make sure it’s having the maximum positive impact on your credit scores is in the limit to balance. We prefer to have our client’s look a credit card as more of a tool to accomplish a goal then a new way for them to purchase. We recommend that our client’s get a credit card and then put a small bill on auto pay with it. Next we strongly encourage they literally SHRED the card and then simply pay the bill when they get the monthly statement. Now you have a credit card, now what the monthly bill will be and your credit card is working for you and your credit scores.

Credit Repair and Opening New Credit

Now its important to make sure you are not opening to many positive accounts. Credit repair is a tricky process and many people will open to many credit accounts and end up hurting themselves more than helping. Items effected when opening credit during the credit repair process are average length of history, types of accounts and debt to income to name a few. Credit repair works, credit repair may be your next step, credit repair and credit cards may make sense for you.