Credit Building: Brief Overview

• Good credit repair also includes credit building.
• Establishing and maintaining new credit is important.
• You can work on credit building yourself via credit cards.

Credit Building: Full Explanation

When people think of credit repair, they usually envision only the removal of old items. This is partially true, as a large part of credit repair is removing derogatory items from your credit report, such as late payments, collection accounts, and even foreclosures. However, a major portion of good credit repair is establishing new, beneficial credit items. This is known as ‘credit building’. Removing old items can only get you so far. Certain parts of the FICO score model like to see that you have new, active lines of credit, and that you are using them responsibly.

National Credit Fixers will work with all of our clients to guide them on complementing repair of old items with credit building. Every day we advise our clients with personalized suggestions on new lines of credit, and how to manage them. However, there are simple steps that you can take on your own to build your credit!  In fact, credit building is probably the biggest thing that you can do yourself to repair your credit.

In this realm, revolving accounts are key. The main sources of revolving credit accounts are, you guessed it, credit cards. While many people view credit cards as a major problem when dealing with credit, they can also be a solution! They just have to be used effectively to benefit your score. You want to have 3-5 revolving accounts on your credit report. If you don’t have them, then visit our rebuilding credit tab and apply for some now! Without new good credit on your credit report, you may fail to see significant advances in your score, even if lots of bad negative information is deleted. New, good credit, such as a credit building credit card, is crucial to getting the best score possible!