Top Credit Repair Tips For Improving Credit Report Scores Part1 - Time

This series of articles on Key Credit Repair Tips to Improve your credit report scores describes the common pitfalls that laypersons commit without having sufficient understanding of the credit reporting system and the solutions to help repair their credit scores.

Only Keep What You Need, Get Rid Of The Rest, Over Time.
You were reviewing your credit report when you chance upon the forgotten credit accounts you opened for those just in case impulse buys some time ago. It seemed that these accounts are culprit to your low credit scores in your credit reports. The very fact that you have forgotten about them, implies that you do not need or use them at all, but if left unattended, you will probably not remember you had them and even stop payment on them, hence eventually negatively affecting your credit score.

Since you do not need and have never used the additional credit lines, only keep the active accounts and begin closing your other accounts. But ensure that you close your accounts on a progressive manner and not all at once. Subsequently, you should update your credit reporting bureaus with supporting documentation on your accounts closures. Over time, your credit scores will improve.

Over Time, In Time.
Note that the operative word here is over time. If you close all your dormant accounts within a short span of time, your credit reports are unable to immediately detect the closures and hence leading to a temporary dip in your overall credit score as you will have higher credit balances spread out over a smaller overall credit account base. But over time, it will balance out.

Do not adjust your credit score by dormant account closures in the following two scenarios. Firstly, if you are applying for a loan, you might be disadvantaged by the temporary drop in your credit score, giving rise to less favorable loan rates. Secondly, never close your dormant accounts when you have a high overall debt balance.

The Mindset Of Credit Reporting Bureaus.
And finally, from the perspectives of the Credit Reporting bureaus, most view it more favorably with good long term credit history. So if you wish to close your dormant accounts, close the most recent accounts first and only if you do not need the extra credit.

Essentially, you would be ill advised should you actively close up all dormant credit accounts within a short span of time or without correctly timing the closure with your financial needs.

Understand that improving your credit score and eventually getting a good credit report takes time and effort.

Stay tuned while we discuss more Credit Repair skills in the next parted of this series and visit my site for more information.