A credit restoration is needed for those who seek debt reliefs in managing bad credit. It is recommended for debtors to engage in highly proven credit repair techniques before sending out attorney credit repair letters & inquiry delete letters over to credit bureaus. The best option is to observe a complete credit repair guide in order to attract the best financing rates and obtain higher probabilities in getting new credit cards.


Reduce utility ratio on credit cards & “revolving credit”.

One common problem for good & bad debtors is credit utility ratio. According to Credit Repair Ex [2015] guide, it is advisable for retail borrowers to keep balances low on credit cards and other “revolving credit”, lowering to at least 30%. Local and foreign consumers often faced bad credit scores for excessive over-the-cover limits of approximately 41% to 50%!


How do I restore my credit? Restoration of credit does not happen overnight. You need to put in the efforts in trimming down consumption habits, keeping outstanding balances low or improving your employment incomes. Several other reputable credit repair ideas are available online too.


For example, you can keep balances low on credit cards solely based on using the (relevant) card’s functions. A credit card for grocery purchases should only be used in places like Walmart stores. A rewards credit card for shopping should be solely spent on retail shopping malls only. A credit card for cash rebates should be solely used for cash rebates on purchases.


Therefore, your credit cards won’t face the issue of overspending and credit card companies giving a “thumbs up” on your prudent financial habits. Credit monitoring services are engaged by banks and fund houses to determine your credit consumption behaviors. Consumers investing in good credit do receive benefits from new & existing lenders.


Don’t recycle good or bad debts.

Paid or unpaid debts, short- or long-run, don’t recycle good or bad debts. What is a debt recycling? A debt recycling is a form of reusable good & bad debts whereby a debtor can pay one debt using another credit line. Essentially, you’re effectively sending one debt to another perpetually. There is no end in the vicious debt cycle!


For instance, you have a credit card bill to pay at month end. Not having sufficient cash to repay the bill on credit card statement, you decided to take a personal loan or use a cash advance facility. But, the bank does not permit you due to over-the-coverage limits so an unsecured debt from another new credit card company is used to cover the shortfall. The convenience enables you to keep recycling credit around various financial institutions until the interests surpass the principle debt repayments.


Don’t recycle good or bad debts. It is financially prudent to pay off debt rather than moving it around! In the short run, you do pay off smaller outstanding balances but servicing mortgage debts is going to be a problem. There is no way a debt recycling can service off unpaid mortgage repayments, not even the interest financing costs. As a smart debtor, proceed to pay off debt first before focusing on improving your credit report.



Terminate unused credit cards.

Does termination of unused credit cards help? As a short-term strategy to raise my credit score, terminating of unused credit cards does help in an intangible manner. A credit card cancellation request will arouse suspicion over borrowers doing such an act. Terminate unused credit cards meant that you might be proactively fixing bad credit or trying to avoid local credit monitoring services – banks don’t give the benefit of doubt.


Don’t close unused credit cards. A short-term strategy should focus on repairing minor credit problems such as a quick credit fix, an improvement in credit score, a temporary debt relief, a credit card interest rate freeze or unpaid mortgage extension. It does not mean you have a sense of relief but a sense of urgency to find money in covering the financial shortfalls. Never terminate unused credit card accounts.


Generally, terminating unused credit lines is used as a long-term credit repair strategy. It helps in letting your lenders know your good financial standing and remaining as a high-quality debtor in their eyes. One should not cancel unused credit card accounts without a valid reason.


Only apply for the best credit cards.

Why can’t I open a number of new credit cards? Financial institutions, banks and credit card companies, are tracking “unattractive” consumer’s preferences in dealing with a multitude of lines of credit. Don’t open a number of new credit cards that you don’t need. Increasing of available credit limits can be used in many ways.


Only apply for the best credit cards. It may not look wise to randomly apply for aged & new credit cards that you actually don’t used at all. Some cards offering toll-fee discounts or lady’s wear rebates do not work on you – your area doesn’t have a toll booth and you don’t shop inside the mall (only online shopping)! Get rid of inactive cards in your purse today.


How to apply for the best credit cards? Before doing reviews on credit card comparison websites, ask again, what is your needs for a credit card. Does a credit card boost your credit history? Can I pay off debt on time? These prominent questions had to be answered before applying for new credit cards online.


A good debtor does not engage in dangerous economic activities. Be it applying for unsecured debts or dealing with stolen identities, you must not be involved in any of these illegal activities. Only apply for the best credit cards.


Used a secured credit card.

Lastly, many people don’t learn the right way of controlling credit. A credit restoration cannot materialize if you do not know how to manage good and bad debts. Facing difficulties in lowering down credit utility ratio, not having enough discipline to curb shopping habits or drawing too much on cash advances & bank overdrafts, time to apply for a secured credit card.


In an initial phase of restoring credit, it is advisable for consumers to create financial awareness among lenders by using secured credit cards. You have to pledge a security deposit or a collateral in using a secured credit card. The security acts as a reminder for you not to overleverage on credit limits while providing a bank guarantee to local credit card companies in fulfilling personal collateral debt obligations.


A secured credit card works similar to an unsecured credit card. It is a type of secured financing that does not have an existing leverage system that of unsecured financing. Banks do want consumers to prove the ability of handling borrowed money via the means of using personal money first. You’re in good hands once secured credit card doesn’t face credit utility ratio problems.


Good to know about manage: how do I restore bad credit?

A credit restoration service might be needed if you still face the above-mentioned financial difficulties in restoring credit. It is advisable to invest in a debt management company for secured & unsecured debt planning too. A restoration of credit does not boost your credit score forever. You’ll need to take good care of your secured and unsecured credit cards by investing in prominent debtor’s solutions: credit repair services & best credit restoration services.


Quote of the Day: “Restoration means restored! – KIG Hall [2013-2018]”


Relevant Topics

» Aggressive credit repair: Ensure consistent paid efforts!

» Start a daily plan for credit repair: Devise a plan to get out of debts!

» Hire reputable credit repair companies: Who do you trust?

» What you need to know about a credit repair: Knowledge is freedom!

» Dos & don’ts of a credit repair: Dos and dons of a credit repair!


This article was originally published on March 09, 2014. It has since been updated.