Home › Forums › Credit Repair › Im wanting to fix my credit…..what is the best credit monitoring company out there for the money? › Re: Im wanting to fix my credit…..what is the best credit monitoring company out there for the money?
I use TrueCredit. It’s cheaper than freecreditreport.com for only $ 14.95/month. You get unlimited access to reports from all 3 agencies. It also provides alerts whenever inquiries are created when credit is applied for and new accounts, especially negative information appears on your report. It also has trending scales to monitor your progress. As far as what you should pay off, I can offer you some tips that you should know:
1. Depending on what the item is, paying it off may not necessarily increase your score. This hold especially true for certain collection items. Just paying collections off, doesn’t increase your score. When the collection hit your report, it did the most damage to your score and typically continues to do that for the next 2 years, then it loses its effectiveness. If you pay off old collections, request a “pay to delete”, which is a payment in exchange for removing it from the report. If you don’t, you’re just wasting money as it will not help your score anywhere near as if you would’ve negoatiated. Here’s several links that explain it detail:
2. On your active accounts, especially credit cards, you should keep the balances at or below 30% of their limits. 30% of your score depends on this, and this is the part of your score you can control the most besides payment history. So that’s pretty important.
3. Only apply for new credit when you’re able and ready to use it. Anytime that you apply for credit regardless of whether you’re approved or not, your score drops anywhere from 3,5, and sometimes 12 points depending on what you’re applying for. If you don’t have any open trade lines (credit accounts), I’d suggest opening a secured credit card to start building credit. This is one of the easiest credit cards to get mainly because a deposit which is used as collateral is required upfront in order to establish a line of credit. For example, if you deposit $ 300, your credit line is $ 300. Reason I say to get a secured card is that there are some credit cards that target people with bad credit, but those aren’t usually worth the plastic they’re printed on, as they’re loaded with hidden fees that are charged before the credit card is received. At least with a secured card, although you’d have to pay a deposit upfront, it’s sometimes linked to a savings account which can gain interest while you’re building credit, and would be given back at some time later on. Also, it disciplines you to manage the account better since you would run the risk of losing the deposit if you didn’t. Also, once the card converts and you get the deposit back, you could use it to start up an emergency fund. I posted several links to some secured card companies as well below.
4. Lastly, although I should’ve put this #1, PAY on time. 35% of your score depends on this. You can relate building credit to building a house of cards. It takes forever to get it up there, and the second a payment is missed, or a collection account appears, BOOM! There goes your score, and now you have to start over.
These are just a few tips that you can use to start building your credit, I’m confident that you’ll get it done!