CREDIT RESTORATION TIPS!

1 Smart Way to Fix Your Bad Credit Once you have it, how should you use it? Basically, treat the card like you're spending your own cash (in a way, you are). Obviously, you want to make your payments on time every month (35% of your FICO score comes from your payment history), but you also should make an effort to keep your balance low. Of your FICO credit score, 30% comes from "amounts owed," which mainly refers to how much money you owe relative to your credit limits. Most experts agree that you should use less than 30% of that amount. For example, if you get a secured card with a limit of $500, try to keep the balance under $150. The lower the better, but make sure you use your card somewhat regularly in order to establish a good payment history. Over time, your secured credit card will help your credit score in nearly every way possible. "Types of credit used" comprises 15% of your score, and if you don't have a credit card, you're not doing too well in this category. Another 10% comes from "new credit," and as your secured card becomes established, the age of your credit will increase and this category will improve. A secured card can be an excellent step on the way to reestablishing your credit, while allowing you all of the freedoms that come with having a credit card.