-->
First, let me state the obvious – Pay your bills on time and check your report for accuracy. Of course you knew that. Now let's get to some lesser known techniques.
Hire an awesome credit recovery company to delete the unverifiable and inaccurate items from your credit report.
There simply is no better way to raise your score than to eliminate the causes of the low score. There are many companies to choose from, but a good rule of thumb is to remember, you get what you pay for. Also, companies who only dispute negative information are largely ineffective when it comes to getting rid of the stubborn items on your report. While I would humbly suggest that you look no further than GenuineCreditRecovery.com, I would also suggest that you stay away from "disputers." They typically charge low fees up front, but then drag the process out forever in order to compensate themselves for their "attractive" teaser rates. In the end, you will still have paid big AND you will have some negatives on your report that will inevitably keep your score grounded, so why bother with them in the first place?
Having a Long and Good History is Vital, So Don't Close Unused Accounts.
One of the factors considered when calculating your credit score is the length of time you've had the credit established with each creditor. You're rewarded for having a positive, long-term history with each creditor, even if the account is inactive or not used. The longer your positive credit history is with each creditor, the better. If you have credit cards you never use, instead of closing the accounts, simply put the credit cards in a safe place and forget about them. It may even be a good thing to take them out of retirement and use them, but only if you can pay off the entire balance next month.
Keep Your Credit Card Balances Low.
Having a balance that represents 35 percent or more of your overall available credit limit on each card will actually hurt you, even if you make all of your payments on-time and consistently pay more than the minimum due. If you have a $1,000 credit limit on a credit card, ideally, you want to maintain a balance of less than $350, and make timely monthly payments on the balance that are above the required monthly minimums – preferably the full balance.
Depending on your personal situation, it could make sense to spread your credit card debt over three, four, or five cards, while keeping your balance on each of them below that 35 percent of the total credit limit mark, as opposed to maxing out one credit card. If you do this, make timely payments on each card and keep them all in good standing.
Piggyback on someone else's good credit.
This is a great little credit score booster and it's fast (about 30 days). But it requires a very trusting relationship. Simply put, someone else adds you to their credit account. For example, when applying for a credit card, you may have seen the section to add a card holder. If your trusting person adds you, their payment history is now reported on your credit report too. If they have perfect credit, now you have a perfect account. If you default, however, you won't be the only one who suffers. The co-signer has basically promised to make good on this account, so any delinquencies will show up on her credit report as well. Please keep in mind; if they blow it, it's blown for you as well.
To make this more effective, use an aged account. Imagine if your trusted person has a 10 year old credit card account with a perfect payment history and a balance of only 30% of the credit limit. This would do wonders for your credit report? The easy part is your trusted person just calls the credit card company and requests a form to add a cardholder. Once completed and activated, their entire account history and future is now firmly planted on your account. Imagine if you secured 3-5 of these accounts - especially installment accounts. Your credit score could sky-rocket!
-->
Hire an awesome credit recovery company to delete the unverifiable and inaccurate items from your credit report.
There simply is no better way to raise your score than to eliminate the causes of the low score. There are many companies to choose from, but a good rule of thumb is to remember, you get what you pay for. Also, companies who only dispute negative information are largely ineffective when it comes to getting rid of the stubborn items on your report. While I would humbly suggest that you look no further than GenuineCreditRecovery.com, I would also suggest that you stay away from "disputers." They typically charge low fees up front, but then drag the process out forever in order to compensate themselves for their "attractive" teaser rates. In the end, you will still have paid big AND you will have some negatives on your report that will inevitably keep your score grounded, so why bother with them in the first place?
Having a Long and Good History is Vital, So Don't Close Unused Accounts.
One of the factors considered when calculating your credit score is the length of time you've had the credit established with each creditor. You're rewarded for having a positive, long-term history with each creditor, even if the account is inactive or not used. The longer your positive credit history is with each creditor, the better. If you have credit cards you never use, instead of closing the accounts, simply put the credit cards in a safe place and forget about them. It may even be a good thing to take them out of retirement and use them, but only if you can pay off the entire balance next month.
Keep Your Credit Card Balances Low.
Having a balance that represents 35 percent or more of your overall available credit limit on each card will actually hurt you, even if you make all of your payments on-time and consistently pay more than the minimum due. If you have a $1,000 credit limit on a credit card, ideally, you want to maintain a balance of less than $350, and make timely monthly payments on the balance that are above the required monthly minimums – preferably the full balance.
Depending on your personal situation, it could make sense to spread your credit card debt over three, four, or five cards, while keeping your balance on each of them below that 35 percent of the total credit limit mark, as opposed to maxing out one credit card. If you do this, make timely payments on each card and keep them all in good standing.
Piggyback on someone else's good credit.
This is a great little credit score booster and it's fast (about 30 days). But it requires a very trusting relationship. Simply put, someone else adds you to their credit account. For example, when applying for a credit card, you may have seen the section to add a card holder. If your trusting person adds you, their payment history is now reported on your credit report too. If they have perfect credit, now you have a perfect account. If you default, however, you won't be the only one who suffers. The co-signer has basically promised to make good on this account, so any delinquencies will show up on her credit report as well. Please keep in mind; if they blow it, it's blown for you as well.
To make this more effective, use an aged account. Imagine if your trusted person has a 10 year old credit card account with a perfect payment history and a balance of only 30% of the credit limit. This would do wonders for your credit report? The easy part is your trusted person just calls the credit card company and requests a form to add a cardholder. Once completed and activated, their entire account history and future is now firmly planted on your account. Imagine if you secured 3-5 of these accounts - especially installment accounts. Your credit score could sky-rocket!
No comments:
Post a Comment