Credit Secrets

Credit Secrets

What Are The Best Credit Secrets Kept Hidden From You?

Do you wish you had better credit? There certainly are ways to Improve Your Credit, and it does not have to take years or even several months to do it.

People who improve their credit enjoy many advantages over those whose credit has suffered. But many are those who tend to do nothing about it, either because they remain irresponsible or they do not know that their credit can be improved in the first place!

People who take the initiative to improve their credit can get larger loans, more credit lines, more in-store Credit Cards, and enjoy lower interest rates on their loans.

Also, it is very important to remember that these days, more prospective employers are checking into applicants credit ratings, and if it comes down to a choice between you and a similar person with better credit, they just may not hire you.

How might you improve your credit? And, how might you do so as quickly as possible? You want to have a score of at least 720.

This is the lending industry gold standard for essentially asking no questions and giving you nearly any loan you want at any time (just depending on your income). How might you attain this?

The way to dramatically improve your credit is very simply to get your debts paid off as much as possible without declaring bankruptcy.

Whatever debts you cannot pay off, you simply get caught up on and maintain in good standing so that you do not have 60-day lates or even 30-day lates on your Credit Report. In fact, there really is no other way to improve your Credit Score.

Now, the good news is: while it may be painful at first, this stuff really is not difficult. All it requires is discipline and a desire to have a High Credit Score. So, first things first: stop incurring debts!

And it all starts right with not applying for any more credit, not even checking out lenders for a while. Why? Your Credit Score is lowered every single time you even apply for a loan. Not by much, but by a couple of points.

So if you sit on the Internet one day and all you do is apply for loans that you never take, you have just cut your Credit Rating down to size for nothing. And stop using your credit cards!

Also at this point, if it needs financing you do not need it. Not even a new TV on your Target in-store card.

There may, however, be just one or two exceptions to this rule if you; a) own a home, b) own credit cards with high balances, c) are behind in your mortgage payments but are not yet in danger of foreclosure.

If you are behind in your home payments, you must take care of them immediately. You do this by contacting your lender and asking to get a refinance. It does not matter at this point whether or not you will need to take a higher interest rate.

Once your credit is up to par again you can refinance into a lower rate again. What matters right now is getting paid up so you can jack up your credit rating.

Now here is one other thing: if you are behind in credit cards or swamped by them, roll them into your refinance, if possible. Roll in other debts like car payments, too.

At the closing table all of these debts are vanished. And, you will still have your credit cards, vehicles and your house. And now (hopefully) you have just one monthly payment.

You can also accept a new Credit Card offer in the mail if it will allow you to transfer your balance from more than one other card and give you the low intro rate. But if you own a home, try the refinance first.

If all else fails, look into debt settlement programs that allow you to pay off your creditors for only a fraction of each dollar. Debt management companies may also be able to help you too, although they will just charge you one monthly payment (to them) to help you stay disciplined.

The bottom line to Improving Your Credit Score is to take control, and you will soon be able to do that with a little time and the right guidance.

About the Author

Alan Largo is the creator and administrator of My Credit Bible and strives to assist others identify with their adverse credit situation through informative reviews. You're invited to visit My Credit Bible to read his most recent article review.

What's the quickest way to increase Credit Report Score.?

Any secrets the credit people don't want you to know?

Any good books on the subject?

Any good websites to consult?

The FICO (credit score) formula is not a secret and there is no need to hire an expert or buy an expensive e-book in order to discover how to raise Credit Scores.

There are five areas that go to make up your score, and they are weighted differently - some areas are more important than others and have a bigger effect on hurting or improving your FICO score:

1. Payment History = 35%

2. Amounts Owed = 30%

3. Length of Credit History = 15%

4. New Credit = 10%

5. Types Of Credit Used = 10%

So, the 10 best things you can do for raising credit scores are:

KEEPING A CLEAN PAYMENT HISTORY

1. Pay on time. At 35%, payment history is the largest area of concern to lenders. The only thing that will damage your score more than late payment is total non-payment.

2. Did I mention pay on time?

AMOUNT OWED - NOT TOO MUCH (BUT NOT TOO LITTLE)

3. Ideally keep your debt to credit ratio to 30% or less. This means only using 30% of your available credit per card.For example, if you have a card with A Credit limit of $1,000, keep the balance at $300 or less.

4. This holds true per individual card but also for your debt to credit ratio overall. This means you need to pay down debt - not just move debt around. This is a frequently misunderstood aspect of how to Raise Credit Scores. You will save money by doing the 0% APR balance transfer dance, but you will not improve your FICO score.

LENGTH OF CREDIT HISTORY

5. A longer average account age will boost your score. This means that opening new accounts can lower your score because a new account will bring down the average age.

6. Point 5 above has a rider - if you have Poor Credit you need to re-establish your credit and rebuild your credit. This means taking a hit in the short term by applying for as much new credit as you can get so that in the long term your score will improve.

NEW CREDIT DOs AND DON'Ts

7. Don't constantly apply for new credit. If you are shopping around for credit, try to squeeze the applications into a short time frame. FICO scores distinguish between a search for a single loan and a search for many new credit lines, in part by the length of time over which inquiries occur. If you are just starting out building your credit, a lot of inquiries will lower your score more than someone with a longer history.

8. Do request a copy of yor credit report regularly. Requesting a copy of your own credit report does NOT damage your credit score. This is an Internet myth. Requesting your own credit report or credit score from an authorized provider does not set off alarm bells the way that multiple requests sometimes does.

TYPES OF CREDIT USED

9. Mix it up. A combination of revolving credit such as credit cards and installment payments like a car loan is ideal.

10. Avoid store cards such as Target, Home Depot and so on. These count as lines of credit as opposed to revolving credit like regular credit cards. Store cards are not given much respect by credit scorers. In the long run, the convenience or in-store discounts will not make up for being refused a VISA card or a prime mortgage rate later on down the track.

If you still want a reliable e-book on how to raise credit scores, go to the site referenced and download the wonderful e-book 101 Powerful Tips for Legally Improving Your Credit Score For Free! (Don't worry - they ask for your email - you won't even need a password.)

TESTIMONIAL: for the Credit Secrets Bible

 

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Credit Secrets

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Filed under: Improve Your Credit Score

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