Credit Rebuilding Process...Does this Really Work?

[CreditDrama85]

after having perfect credit, several accounts of mine went negative and a few charged-off that i am still paying on.....it dropped my score 100-150 pts across the board...

my question is, does opening new accounts to dilute /lessen the effect of the negative ones that went bad really work? or am i making matters worse by adding more debt?

it has only been about 3 months since i have opened new accts, so its too early to tell

[Anonymous]

You're doing the right thing, as long as you keep your utilization (the percent of the credit limit on the new accounts) below 10% and paying on time.

Bear in mind when you FIRST open a new credit account, your FICO generally takes two short-term hits: first, the inquiries you sustained to get the new account, and second, a decline in the average age of your open accounts.

These are short-term hits though...as the months go by, and the uglies get older and older, and your good payment history is firmly established, your score WILL go up. The challenge to people in your situation is to keep doing the right thing even if you don't get any immediate benefits for so doing.