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Credit Repair – The First Steps

Posted on June 11, 2010

credit card When I got my first credit card I thought that building a good credit history is about using your card as much as possible and paying on time. How could I’ve been so wrong? Months passed and I was spending about 80-90% of my credit limit and paying it once I receive each statement. Spending a lot should have made the bank some money because they get paid when you use a credit card and paying my full statement on time must have left the impression that I am financially stable. But is this how the credit card companies feel about it?

I didn’t have any reason to be interested in my credit score so I had no idea what it was. Soon I decided to get my first cell phone plan. I got rejected immediately because of low credit score. How could this be? I was such a good customer – spending money and paying on time… I decided to ask people who have had credit cards for years and enjoy excellent credit scores. I received a lot of advice including… “Do not pay your entire statement every month. Let them take some money from the interest so they can be happy too.” And this is what I did. Wrong again! It took a lot of research, digging into hundreds of websites and even paying for some credit advice services to learn all that I have learned so far.

My biggest mistake was my initial idea that spending money on the credit card will shoot some money to the credit card company and make them happy. Well it won’t! In reality, you need to spend less than 15% of your credit limit to get a good credit score, at least in the first few years. The credit score calculation is complex. It takes many factors and a resource like Credit is exactly what people need. We will keep posting vital credit repair advice and hopefully you will start seeing results as we go!

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