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Originally Posted by unclmikl  thier are several things you can do to help accellerate your credit.first get your balances under 35% on your credit cards. this may seem overwhelming at first
but when you use more than 35% of your revolving credit it hurts your score more than it helps
*****pull your credit report *****and score
know where you are at
scour your report see if thier is anything that is innaccurate, unreported, wrong or frauduluent. and dispute them ITS FREE ITS EASY AND YOU CAN DO IT YOURSELF you just went through a loan mod.(thius will be a walk in the park)
1. where can you save money. for me i used to get my lunch delivered to my store everyday 6 days a week $7.00 a day now i buy lunchmeat bread and chips. i dont buy what i want. i but what i like that is on sale . i saved approx $100 month here. me and my wife have a great cell plan $100 a month unlimited calling for both phones. so we are going to cancel our $50 a month home phone
2.if you have been paying your credit cards on time(6 months minium) call the card issuer and ask for credit line increase. not so you can buy more stuff.but so you can drop your percentage of used available credit. because you already have credit with these people if they pull your credit it dont affect your score.
3 if #2 is not an option consider getting a secured credit card. where you put money in a bank acct and you recieve a credit card with a limit equal to your balance. when you use this option make sure you find a company that reports to all three credit bureaus.it will initially cost you a couple points for pulling your credit report. but if you use it correctly not going over 35% your money will be working for you.
4. BIG SECRET (PIGGY BACK CREDIT)
if you have a parent or loved one that trust you. that has an A plus credit rating and has a credit card that has a high credit limit with low balance ask them to put you on as an authorised user. just dont use it
5. if you have any cards you dont use (((never cancel them))) did i say NEVER( good)just wanted to make myself clear on this . cancelling a credit card only has a negative impact all the damage is done when you open the acct. when you close it you think your doing a good thing in actuality you are increasing the balance ratio on all your other lines of credit.sometimes its not good to have them dormant too long as some issuers will cancel them. so if you have them buy a tank of gas every six months and pay it off it two payments.depending on when your card issuer reports to the credit bureaus. so if you pay it all off. it may report a $0 balance like you never used it For this same reason it is not good to pay your balances in full every month.( i have a credit card that earns me 5% cash back on(gas) i spend $400 a month on gas so i pay all but $20 cause i want to earn $20 a month and pay at the pump. this card is not generating alot of positive credit for me (but its not generating negative either.
6. HOW YOU PAY IS IMPORTANT
never pay 30 days late as this is the number 1 killer.if your electric is due the same day as your credit card bill aND YOU CAN ONLY PAY ONE. IF YOU DONT PAY THE ELECTRIC THIER GOIN TO SHUT YOU OFF and if you dont paythe credit card you will be 30 days late and take 10,15 or 30 point hit(pay the credit card with your cash and put the electric bill on your credit card.
7.Always pay more than the minium even if its only $5 cause then it reports paid more than minium and this is better for your score. conversely if you have extra money(income tax return)or such and you have a new living room set financed dont just pay it off.
if you have a $3000 obligation on your credit report and you pay it off one month you may see a 5 or 10 point increase. if you take that same $3000 and break it into six payments you may see a 40 point increase in your credit score.(credit agencies want to see you have a history over a period of time making payments
the credit bureaus and some credit card companies have score simulators so you can see what is the best action is for you too take.
I will post more on this later
unclmikl |
Hi Unclemikl
I like your info about building credit score. However I somewhat disagree with #7. If you have a 3k loan, instead of paying in off in one payment you suggest pay over 6 months. This would be good if the loan was no interest for 6 months, I understand the concept of creating a payment history but I don't like paying interest. I would rather raise my score 10 points and lower my DTI . Just my 2 cents.
Thanks for all the great info.
acesfull