Since I spent over twenty years working in banking and finance, most people are shocked to find out that like them, I have also struggled to keep my credit score in tip top shape. The truth is that I am no different from anyone. Life happens, and sometimes you find yourself with a credit score that is lower than what you would like. When I tell people this, they always want to know how I repair my own credit.
Whenever I am working on credit restoration, whether for myself or a client, the first thing I do is get a copy of the credit reports from each of the three credit bureaus. You will probably surprised at how many errors that you find. As an example, I once had a friend who was forced into a medical bankruptcy. Since her bankruptcy, she had not bothered to check her credit report because she knew that all of her debts had been included. When I convinced her that she needed to do this, she was shocked and horrified to find that these accounts were being reported as open collections. After getting these errors corrected, her credit score went up.
The number one thing I recommend to people looking to improve their credit scores is to work as hard as they can to get rid of credit card bills. Many people do not understand that simply paying your credit cards on time does not mean that they are not negatively impacting your credit score. Carrying balances on your credit score lowers it in almost all cases. The reason for this is that other than how you pay your bills, the ratio of credit you are using versus what you have available to you is the second most important factor in determining your credit score. For the best possible credit score, aim to get your balances down to 20% or less of your total credit line.
