Improve Less Than Perfect Credit Score and Repair Credit Card Debt

Article by New Credit Applications

Improve your credit score by repairing credit card debt even if you have less than perfect credit. Alleviating credit card debt is the best way to repair your credit score and improve your less than perfect credit. Once your credit card debt is repaired your credit score will improve thus allowing you to once again obtain new credit cards and receive instant approval online.

There are five simple steps to improve less than perfect credit by repairing your credit card debt. Following these simple steps to repair credit card debt can improve your credit score by nearly a 100 points.

The first step to improve your less than perfect credit score and repair credit card debt is to obtain a copy of your credit report. Pull your credit report from all three bureaus to see what is negatively impacting your credit score. You can obtain a free credit report annually from http://www.annualcreditreport.com.

The 2nd step is to reduce the number of credit collection accounts that are negatively impacting your credit score. These negative credit marks will hurt your chances of obtaining a new credit card. After reviewing your credit report write a dispute letter to each credit card bureau (Experian, TransUnion, and Equifax) via certified mail. Dispute every credit collection or negative credit card account that is listed on your credit report even if the account are in fact legitimate. Credit card companies and creditors have 30 days to respond to the bureaus to state that the negative items are in fact owed by you. If they do not respond they have to drop the negative credit accounts or collection items from your credit report thereby improving your less than perfect credit almost instantly. It’s also best to send in dispute letters during holiday months when they are understaffed and overworked. You can also request that any old accounts (older than 7 years) be removed from your credit report. They have to do this by law, but don’t have your oldest credit card account removed if it’s not negatively affecting your credit score. The longer you have established credit the higher your credit score will be. This ultimately will improve your less than perfect credit by boosting your credit score significantly. Most people experience a 100 point increase in their credit report from this step alone.

The 3rd and most important step in repairing your credit card debt is to establish two new lines of credit instantly. There are several new credit cards to choose from with different perks and APR’s. You can compare new credit cards and complete a new credit card application online http://EasyCreditApp.NewCreditApplications.com/ for instant approval on most applicants. Applying for new credit can initially lower your score by just a few point due to the number of inquiries that post to your credit report so only apply for credit cards that you have a better chance of obtaining. You can start with a prepaid visa that has a built in credit builder program designed for people with poor credit.

The 4th step in repairing less than perfect credit is to maintain a good standing with the new lines of credit you recently obtained from New Credit Applications. As a rule of thumb its best not to purchase anything on credit that you will not have when the credit card statement arrives or only charge something that you pay each month anyway like your electric bill. Charge it and then pay it off as soon as the bill arrives. Don’t use your new credit cards for anything else. Put them in a drawer and forget about them. Remember the key is to keep them in good standing not to charge things that you cannot afford or that you will not be able to pay for in full when the bill comes in. Learning responsibility can also play a key role in repairing your credit card debt. Which most of us learned the hard way and believe that once we are able to get a second chance we will look at credit in a whole new way.

The 5th and final step is to routinely monitor your credit report and credit score. Your FICO score is the most important number that your creditors see when deciding your credit worthiness. My personal favorite is http://www.myfico.com for the best score watch system that is available today. You can also obtain your score for free at http://www.creditkarma.com, but it varies from the official FICO credit score.