Credit Enhancement Tips · LetsGetFunded Starter (Free)

Credit Enhancement Tips

Here are a few ideas..............................nothing new. Just reminders.

1. The fastest way to raise your credit score is paying down your credit card balances. As soon as you reduce your balance-to-limit ratio, your score instantly increases. If your balance is over 30% of the allowed limit, your score gets docked. If your balance is over 50% of the allowed limit, your score gets docked even more. If your balance is near the limit or maxed out, then you get penalized with a major decrease to your credit score. The optimal percentage to gain the most points is a balance-to-limit ratio of less than 10% according to FICO. Keep in mind the balance-to-limit applies to each credit card and applies to the sum of all cards. If your score is 640 or above you may be able to get a personal loan to pay down the utilization.

2. If you do not have the money to pay down your balances, call the credit card company and ask them to raise your credit limit. This accomplishes the same thing by lowering your credit utilization ratio. If you have been paying on time, they will usually agree, hoping you will spend more and owe them more in interest payments. You can do this every 6-12 month (and you should).

3. If you cannot pay down your balance or get a credit line increase, you might be able to redistribute some of the high balance cards to other existing cards with lower utilization. Be sure and stay under 30% on each card if possible. Keep the higher balances on the lowest interest rate cards.

4. If you have true business credit cards that do not report to personal credit bureaus, you can do balance transfers to these business credit cards. This will remove that amount off your personal credit and increase your scores dramatically.

5. Another unique way to increase your score is to report your Cell Phone, Rent, and Utility payments to the credit bureaus via a company called Level Credit (Now Self). Very few consumers know of this service. Utilize bills you are already paying. Build your credit without taking on more debt. https://www.levelcredit.com/how-it-works The cost is a onetime fee of $49.95 plus $6.95 per month. They will report to all three credit bureaus. Add up to 2 years of past payments. Build your credit fast! Rent Reporters is another way to report your rent and gain a valuable tradeline.

6. Another rapid credit score improvement technique is to become an authorized user on a family member’s credit card. The main benefit of becoming an authorized user on a credit card is the fact that you can benefit from another person’s good credit and good credit history to build your own. Becoming an authorized user helps you build credit by piggybacking off the primary account holder’s responsible use. And you get this benefit without applying for a credit card of your own which would cause an inquiry and negatively adjust your total credit file age. Adding other people’s seasoned accounts adds positively to your credit file age. Don’t know anyone but willing to pay for the service? Check out https://tradelinesupply.com/ https://personaltradelines.com/

7. Add to your credit mix. If you have only credit cards, consider getting a loan; a credit builder loan can be a low-cost option. A credit-builder loan is different from a traditional loan. With a traditional loan, you might receive the money you’re borrowing upfront and pay it back over time. But with a credit-builder loan, you make fixed payments to a lender and then get access to the loan amount at the end of the loan’s term. Https://meetava.sjv.io/o4Jv3e or https://kikoff.com/

8. Another way to build or rebuild your credit is with a secured credit card. This type of card is backed by a cash deposit. You pay the deposit upfront, and the deposit amount is usually the same as your credit limit. Then, you use it like a normal credit card, and your on-time payments help build your credit. Many banks offer secured credit cards. Capital One and Discover offer these. There is a unique credit builder card (not secured) called AVA. Https://meetava.sjv.io/o4Jv3e

9. Dispute credit report errors. A mistake on one of your credit reports could be pulling down your score. You're entitled to free reports from each of the three major credit bureaus. Request them and then check for mistakes, such as payments marked late when you paid on time, someone else's credit activity mixed with yours, or negative information that’s too old to be listed anymore. Once you've identified them, dispute credit report errors. You can do this yourself or hire a credit repair service.

10. To raise current credit card limits, use this technique. It helps to have a personal credit card limit of $10K+ reporting on your file. Use the credit cards you have now and run them up near the limits and pay it off at the end of the month. Buy all your life necessities and monthly obligations on your credit card. All the stuff you were going to pay with cash, debit card, or check anyway. Do this for 2-3 months then ask for a credit limit. This technique also earns you tons of points or cash-back from your credit cards.

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