How To BOOST Your Credit Score UP
I'm new and I have bad credit. I want to start investing and I hear I could get better opportunities with better credit. Are there any strategies that can help me? So far I've heard that calling in for a fraud bumps up a score. Is that true? I'm anxious to see some results.
Start by paying off any credit card balances. Also, if there are any charge offs or collections, start disputing those accounts with the CRAs as not mine to get them removed. Also, if possible, ask someone to add you on as an authorized user to a credit card that has been open for a while and paid as agreed.
Greg
hmmmm.....it depends on waht is in the credit report. give some more details and you can be helped.
It is not always a good thing to pay off the credit card debt. Instead, increase the monthly payments, one by one, until they are at about 60% of limit. keep them at that level or below.
Your end goal should be anywhere from 10 to 30 percent utilization[ Edited by GregTanner on Date 12/06/2004 ]
Well... on my girlfriend's side, her credit was ruined with an unpaid credit card balance due to her own personal reasons. I believe there was a chargeoff. She also had a cellular bill that was never paid. they all are approximately over a year ago. As for myself, I think I'm on road to recovery. I'm not going to say i'm withing walking distance but I'm still trying to hitch a hike to my destination. I read an article by johnny cash about the AAA credit. has anyone tried that technique? I've been asking many banks about securing a loan upon $500 but they all pitch me a credit card. Does it really work? And how many Loans Maximum should I go with once I start that domino effect of loans?
flipping I would just make sure you have everything else on your report cleaned up before you start the domino. I have never done it myself, but because of the low limits it will have a minimal effect on your credit and no immediate affect.
One thing you will want to make sure is that it is not below the reporting limits of your bank. Some banks do not report limits to the CRA's below a certain $ amount.
If you have outstanding derogs on your credit reports it will probably just wash out. If you keep up the process long enough it will help you, I just can't say how long.
One thing is will you have enough money to pay off 3 seperate loans while leaving $500 tied up in each bank. Banks usually hold the whole security until the loan is repaid in full. Paying the loans off before 6 months of payments will hinder what you are trying to accomplish.
When trying to get loans for investments. The banks look at credit in following ways: number of accounts, time accounts are open, amount of credit allotted, and ratio of credit balances. There are no short cuts to good credit ratings. Being a responsible, bill paying person is the best way to increase credit ratings
Lori
[addsig]
I own a small business and was nearly bankrupt on 9/11. Considering what others lost, I walked away fine.
My credit score is 450, I have several three year-old BIG judgments and can't even get a gas card.
However, last fall, I found a FSBO property,asked for owner financing after telling the seller about my credit,
struck a deal. He saw that I am now working hard and my business is back on track.
He agreed to work with me if I put up a couple of grand.
I did...then put in some serious sweat equity and flipped the house for a $30K profit in four months.
My credit had no bearing on this deal whatsoever.
Don't get too hung up on your credit scores. Find other creative ways to make deals and you'll never have to borrow a dime.
2 cents.