STEP 5: BUILDING NEW CREDIT
Welcome to the final step of the credit enhancement formula. You will find all our training below, just click the links to access the videos
Well, you did it – you made it through the five steps in the credit repair process! Now that you know how to ethically remove negative accounts from your credit reports and how to build good credit while having bad credit, it’s now time to be patient. An excellent credit score doesn’t happen overnight, but as long as you follow through on getting negative accounts removed and making timely payments on your open credit accounts, you’re on the right track.
Once you have established a pattern of on time payments, you may be able to improve your credit by opening another account. Having a good mixture of open credit accounts is an important part of getting a good credit score. You would likely be approved for a standard credit card after 12-18 months of making on time payments on your secured cards. Orchard Bank and Capital One are both excellent choices when you’re trying to move up from secured cards to unsecured cards. Do note, you will likely see a temporary score drop if/when you close your secured cards.
In a nutshell, having a combination or various types of credit accounts (example: credit cards, personal loans, home loan, auto loan), usually improves your credit score, including having at least two open revolving accounts or credit cards. You only want to apply for credit you’ll likely be approved for, having several inquiries or hard pulls on your credit file will result in a score drop.
Staying Organized With Your Payment Dates
It’s not fun playing financial gymnastics – trying to remember the login information, due dates. and amounts for each credit card when you have a lot of them. If you are not prepared and educated, you might even face overwhelm. Having a great system in place to keep you on track is very important.
In this lesson, I’ll share with you how I manage over 10+ different cards every single month in a very time effective way that helps increase my credit score even more. If you apply this same strategy for yourself, you will notice not only how easy managing and building credit is, but also how fun and exciting it can be when you are making major improvements overall.
note: I highlight more than enough how important it is to schedule a single date to pay your credit card bills (and other bills if possible). If you can get into the habit of one day every single month (or even twice a month), you won’t have to worry about due dates any longer and have one less thing on your mind.
Managing Unused Credit Card Lines
One of the fastest ways to have a score drop is due to the loss of credit history from a closed account. Losing a History on a credit card account such as the length of the time that the card was open will decrease your credit score overall.
On the flip side, keeping unused open credit cards open without knowing how to manage them can also be very tricky. In this lesson, we discuss how to easily manage all of the unused open credit card lines so that your accounts stay open and even continues to raise your score by increasing important factors such as amount of on time payments.
I’ll even show you a cool strategy on how to organize your cards in your wallet so that you can easily remember which ones you have used, and which ones you still need to use.
Leveraging Credit Cards for Cash Back Rewards
Do you like to get money you wouldn’t have had otherwise?
Now while you won’t be able to make a living on getting cash back with credit cards, it’s a pretty awesome way to earn extra rewards for money that you are already going to spend anyways. Personally, when it comes to debit cards, I never use them because I have replaced them with rewards credit cards.
There is a special way you want to use these cards so that you are successfully playing the game to benefit you for purchases that you were already going to make – while making it so that you can remain debt-free at the same time.
In this lesson, I’ll teach you what types of cashback cards to look for and how to use them to get the most out of your everyday purchases.