As long as you\u2019re not paying exorbitant fees, keep unused credit card accounts open for now.
Cards such as the Discover It (both the secured and unsecured versions) send your FICO score with your monthly statement, so you can keep track of progress.\n\u2013 and the rest of your bills too.\u00a0 Payment history counts for 35 percent of your FICO Score \u2013 the biggest chunk \u2013 and takes some patience to repair.
Consistent and timely payments are the single most important thing you can do to improve your score. Use auto-pay for recurring bills when you can, or set reminders for a few days before bills are due.\n Once a debt goes to a collection agency, it\u2019s on your record for seven years.
While you might be tempted to cancel all but one card, over-consolidation of your credit cards can backfire.
Owing the same amount over fewer open accounts can actually lower your score.
Good news: it’s easier to fix than payment history.
Along with keeping individual balances to a minimum, focus on paying down your overall credit card debt.It may seem complicated, but it’s simpler than it sounds. They’re looking at how we manage the revolving debt we have in order to judge if we can handle more.Your credit cards are the best means of proving you can be trusted to pay back a loan – better yet, multiple loans – in a timely, consistent way.\n If you\u2019re trying to repair your credit or bump up your credit score, look no further than your own wallet.And while you won’t get approved for a mortgage or other major loan without good credit, there is one form of revolving credit you’re probably already managing: your credit cards Misused, credit cards can get you into trouble.But managed properly, credit cards are a powerful tool for proving your ability to handle debt.More importantly, spreading out \u2013 and paying down – your revolving debt is a good strategy.\n On the flip side, however, don\u2019t apply for a bunch of new credit cards thinking you\u2019re increasing available credit \u2013 especially if your credit is new.