Credit Triage: Pay Attention to What Matters the Most

credit triageIf you are looking to repair or strengthen your credit rating, a great way to approach it is to triage your accounts. Crazy Credit’s credit triage is the most logical and time-saving way to fix bad credit, or quickly and easily raise your credit score.

In case you need a refresher, here is a great definition of a medical triage from our friends at Wikipedia. 1) Those who are likely to live, regardless of what care they receive; 2) Those who are unlikely to live, regardless of what care they receive; 3) Those for whom immediate care might make a positive difference in the outcome.

As you can see, the whole purpose of a medical triage is for the medic to spend his or her time on what matters most. They are likely to bypass group 1 and group 2, in favor of group 3. This is the best use of their time, and it is where their skills can make the most difference. A credit triage is similar, and will allow you to quickly improve your credit score in the most time-efficient way possible.

Credit Triage Basics

After getting your free credit reports at annualcreditreport.com, you’ll want to divide the accounts into the following 3 categories.

  1. Those accounts which will continue to report positively, either because they’ve been paid off, or you are currently making the payments.
  2. Those accounts that are unlikely to ever get better, without a LOT of work that may be all in naught. This would include tax liens, bankruptcies, older collection accounts, etc.
  3. Those accounts that can be improved, or saved before they take a turn for the worse. This would include things like open credit cards accounts with a balance more than 30% of the credit limit. Accounts that may have had a late payment or two could also fall into this category.

Of course, your accounts can fall into multiple categories. For example, a credit card of yours might be reporting on-time payments for the past 2 years, but yet also shows a utilization over 30%. The positive payment history is great, but it is more than offset by the utilization.

Category 3 Matters the Most

Focus your efforts on every account that fits into category 3. This will have the most immediate impact on your credit score, and it is where the bulk of your efforts should be.

Address the accounts that can be fixed with the least amount of work. You will be amazed at how much your credit score improves by simply taking care of the most basic of issues, such as credit utilization.

A credit triage is the first step to repairing bad credit, and to make average or good credit become great. Start giving your credit the attention it deserves. Today. You’ll be glad you did. ♦