Bad Credit Recovery

Recovering from Bad Credit

Recovering or rebuilding a negative credit profile into a good one can take time and patience and determination. But it is possible and can happen faster than you think. Just as fast as credit goes down, it can come back up, then go back down. Credit scores are always changing and always moving. Your FICO score is  a moving target therefore there are things that you can do every day and each month that will help raise your credit score.

How Risk is Calculated

The credit scoring models are algorithms to calculate risk. These algorithms are used by Experian, Equifax and Trans Union the three largest credit bureaus also known as credit agencies.
Risk is calculated and your credit score made up of five parts. 35% of your credit score is payment history, 30% of your credit score is amounts owed, 15% of your credit score is length of credit history, 10% is based on new credit and 10% is based on types of credit used.
Payment history is key in rebuilding and reestablishing credit. Positive payment history timely payment history with no late payments is paramount when trying to establish new credit or recover from a bad credit score.

The Road to Recovery

Amounts owed is also very important. If you have several credit lines open with positive payment history and timely payments but each account or credit card is maxed out or used at 70, 80 or 90% of the available credit, that will drive your score down. For the best rebuilding of your credit you want to keep all of your credit amounts owed at 35 to 40% of the available credit.
Length of credit history is also important in recovering and rebuilding your credit score. This is the time part.  The credit algorithm wants to see a long period of time of positive payment history and good credit standing. The longer your positive payment history and good credit established the better your score will be.
Using a company like New Day Credit Repair can help you recover or reestablish your credit quickly. Through document preparation and credit education as well as an analyzing of your open credit trade lines New Day Credit Repair will help you come up with a strategy and a game plan to effectively raise your credit score and allow you to be approved when you previously may have been denied for loans, mortgages or credit.
Call us Now to move closer to your dream of owning that new home, car, furniture or anything else you have planned for your money : (866) 368-8828