2 Easy Tips To Raise Your Credit Scores 40-100 Points - Article-Library.Network

Article-Library .Net

More than 100.000 Excellent Articles - Free Content for your Site.


Earn Money. ($73.568) | CNCHobby | Leona Sims | Hosting from 1 euro | Invite Friends. Get Paid.



Search:

Home | Finance


2 Easy Tips To Raise Your Credit Scores 40-100 Points

By: Brad Alexzander6


Add this Article to your website/blog

The first important step is to gain a basic understanding of how your credit scores are determined. I am sure this will be new information for you, since this is not taught to any of us in school. In fact, when it comes to the three credit bureaus, equifax, experian, and transunion, they prefer to keep everyone in the dark on how credit scoring works.

Now I will keep it simple and explain how your credit scores are calculated...

Your Payment History (35%) Makes up the largest factor in determining your score. This is a picture of how you pay your bills.

Credit Utilization 30%: The percentage of available credit used. Keeping your account balances below 50% of the available credit limit will maximize your scores. For the purpose of this article, this is where we will find the most room to quickly increase your scores.

Credit History 15%: How long your accounts have been open. Longer more established accounts are more positively weighted than newer accounts.

Credit Inquiries 15%: Whenever you apply for credit, an inquiry is registered on your credit reports. If you get too many, it can have a negative effect.

Type of Credit In Use 10%: Type of accounts, and number in use. Mortgage loans are the best, and finance company accounts are the worst.

Ok, now we have some powerfull knowledge. It's time to put it to use with 2 things we can do in about 30 minutes to increase our credit scores...

Get an increased credit limit. This is very simple to do, and I think you will be pleasantly suprised by the success rate if you just make a couple easy phone calls. Just pick up the phone and ask to raise your credit limit. Now you can also use my favorite strategy and say something like, "I am considering a balance transfer to another card with a higher limit and better interest rate, but thought I would see first if you would increase my limit and possibly lower my interest before I cancel this card.". I have found this to be successfull nearly all the time, both personally as well as with my clients.

Here is an example of what can be achieved. You have a credit card with a balance of $4,000 and a limit of $5,000. This means you are 80% utilized. After using the above technique, your limit is raised to $6,500. Now you are only 62% utilized. Immediately your credit scores have increased. Keep in mind that we want to ideally keep our balances at 50% or lower compared to our credit limits. This segways to the next tip.

Bring your balances down! Let's continue from the above example where you are now 62% utilized on your credit card. If you were to pay down $750 on this card, you could bring the balance down to $3,250 on a card with a limit of $6,500, and that would put your at 50% utilized. Now not everyone has the ability to pay more than the minimum payment on their cards, and that's ok, you have already raised your scores. However, at 50% utilization, you will be able to maximize your scores. Now imagine if you did this on all your credit card accounts. Now, consider this... If you could raise your scores and get a better interest rate and lower monthly payments on a mortgage loan, or auto loan, you could save thousands over the life of that loan.

If you use these powerful techniques, you are sure to increase your scores quickly and easily. I have seen it work over and over. One recent client was able to increase their credit scores by 105 points after getting the credit limits raised on all three of their credit cards in less than 30 minutes. You have nothing to lose by making a couple calls.

Keep in mind that these techniques work best for those who have a good credit history, and at least 3 open, established credit accounts. For those with more challenged credit or a negative credit history, a more aggressive approach and credit repair strategies may be more appropriate.

More Articles: http://www.article-library.net

Jon Ochs has worked in the credit and debt industry for over 12 years and is the founder/CEO of NCA Credit Repair, a highly respected credit repair services company.



Add this Article to your website/blog

2 Easy Tips To Raise Your Credit Scores 40-100 Points

Please Rate this Article

 

Not yet Rated

Click the XML Icon Above to Receive Finance Articles Via RSS!


Additional Articles From - Home | Finance
Sign Up for a free account or learn more.



Submit Articles
Member Login
Top Authors
Most Popular Articles
Submission Guidelines
Ezine Notifications
Article RSS Feeds
Directory
Submit your site for free
Free Content Creator
New Stuff
About Us
Site Blog
Link to Us
Contact Us
Privacy Policy
Terms of Service
Other Links

Google

Sponsors



Extra Information
| A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z |
At least 100.000 Articles

FindingIT

Article-Library.Net


MyEasyDating
Sponsors
Links
elAdvertise

Powered by Article Dashboard