We all want better credit scores. Sometimes that seems like an impossible goal. Knowing how to get there is the secret in the sauce.
You may have found out the hard way that your credit score had taken the plunge, such as when you applied for a home loan, auto loan or credit card. However it happened I’m sure it was a disappointment to not get the credit that you so needed.
Many times people take advice from family, friends or co-workers on how to raise their credit score or repair their credit. One person will tell you how their uncle got 2 secured credit cards and within a few months bought a house. It may have worked for the uncle…I don’t know what his credit report looked like. Which is the same reason why you don’t need to take advice from someone that really doesn’t know enough about the subject to teach you about it.
Well anyway, let’s move on and get to the reason that you are reading this blog…so here we go…
- Become an Authorized User on someone’s credit card. Before you do this be aware of a few things. 1. The card does not need to be running a month to month balance of more than 30% of the card’s credit limit. 2. The card does not need to have a history of late payments, especially recent late payments within the last 2 years. 3. You will not be liable for the debt. Even if the card is included in bankruptcy, charged-off or in collections, an Authorized User is not responsible for repayment. With this said, if you used the card and made a debt, be an upstanding person and pay the debt. If at anytime you want to be removed, have the card holder to call and have you removed or you can write the credit reporting agencies and ask that the account be removed from your credit reports.
- Make 2 payments per month to your credit card. Split your payment in half and pay half right before the statement end date and the other half of the payment before the due date. This will also help in not paying as much interest.
- If you come into any cash, pay down revolving credit first. Revolving credit many times has the highest interest rate and the more of your credit card’s limit that you use the lower your score will go. It works like a see-saw. If you don’t have credit card debt, then pay down educational loans. This hurts your score when they are in deferment, due to the balance going higher than the original amount borrowed.
It will usually take 2 to 5 weeks before your scores will change due to when the creditor reports to the credit reporting agencies. This is where monitoring your credit can be important. You can get credit monitoring by going to www.creditscoreboosters.com and signing up. The reports update every 30 days as well as your three credit scores.
Do you need your credit repaired? Call us. We can help. 205-649-1964 call or text.
Remember, building good credit takes time. Taking care of credit takes a lifetime.