how can you raise a credit score quickly by about 50 pts. I know paying bills on time is the way to go but if?
Sunday, July 11th, 2010 at
1:31 am
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Pay off 90% of your outstanding balances, that makes a huge difference.
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This is one of the faster ways, but it will not happen overnight. If you have a credit card, make more than the monthly payments, but not enough to pay off the entire bill (for example, if you have a credit card that has a limit of 3000 and a minimum payment of $50 dollars a month, make payments of $100-$150 per month). At the end of about 6 months, pay off the entire balance. Then repeat the process. Don’t max out your credit card. Keep money available if you need it. Maxing out credit cards and making minimum payments tells credit card companies that you are living off your cards. Follow these instructions and your credit score will rise quickly. Also, call one of the 3 major credit agencies and put a "block" on your credit history. This will mean that in order for someone to check your credit, they have to have your permission. A main reason a person has good instead of great credit is because many companies/people check your credit history without your knowledge. Every check of your credit reduces your score by 2 points per check. Hope this helps.
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Get a copy of the credit report, check for erros, correct errors if any. If there are any oustanding balances due pay one or more off. Get one credit card and only one, sixty days down the road get another credit card or major retailer credit card. Buy something on credit the person can afford, make one payment, pay the balance when the next payment is due. Credit ratings have been changing but the range is from about 300 to 800, a good scores is around 650. They look at many factors like taking on debt, like a car loand and paying it off. Having a lot of cards and using them very sparingly increases your score. The credit card companys don’t like it, but they like the credit rating you get from doing that. They look at how much you can charge at any time and how little you are using. They look at homeownership vs. renting. They look at accounts gone to collection that were never paid. All kinds of stupid little details. A block is not going to help unless there is an issue pertaining to identify theft. Keep applications for new credit to a minimum no more than one new credit card every 60 days. Pay off credit cards if you can, don’t carry from month to month. You want a lot of credit available to you, so it seems you can take on a lot of debt. Anything you can afford to buy cash pay with your credit card and then pay the whole thing off at the end of the month. You don’t need to make payments on something for a long time. You just need to complete the contract meaning you have to pay off the debt. If you pay off early, it helps you, it doesn’t hurt you. A nice mix is best some credit cards, some retailer cards, a car payment, a mortgage.
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Can you obtain a new credit card? If so, use it to pay your utility bills each month and then just use the money that was set aside for the utility bills to pay off the balance of the credit card each month. However, I’m really not sure if this would raise it that much in a short time. I suggest asking a local bank manager.
Good luck to you!
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I’m a mortgage banker, licensed in all 50 states, with an MBA in finance. I have studied credit scores and the effects of different things and have helped my clients do things quickly to get the loan we wanted to get for them. First of all, credit scores are referred to as FICO scores (developed by Fair Isaacs Corp. in the 60′s). Scores range from 450 to 850. I deal mostly in construction loans for large custom homes, so the majoriy of my clients have very good credit. The highest score that has come across my desk is 821. The interesting thing I noticed when I studies this report is that is was NOT sparse. These people used a great deal of credit. The keys are to obviously never make a payment late. If you end up in a dispute where someone is reporting a collection, these are always negotiable. No matter what you work out financially, insist that the only way they will get a dime is if they remove that collection from your report. You don’t want them to just show it paid. You want it removed. The other thing is to keep your credit card balances under 50% of the credit limit. The bureaus reward people who use credit responsibly. Getting a couple of cards and not using them does very little good. They want to see activity, not dormant accounts.
The first thing you will want to do for a rapid score increase is to make sure there is no mistakes. Probably 75% of all reports I see have some sort of mistake. Lenders have ways to get these removed very quickly. When you pursue this, it will take weeks. Lenders can get this done in 3-4 days. I hope this helps.
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An outstanding resource is http://www.myfico.com
Get a trusted family or friend with good credit to add you to there credit cards. If they give you a card of your own their credit limit and amount owed will transfer to your credit report ultimatelly boosting your credit score.
http://www.creditscorebooster.com/
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http://www.creditscorebooster.com/