What are some quick ways to raise my credit score?
I’m 19 y/o and I have three major credit cards. I have a credit score of 708 and I’m trying to get it higher. I recently applied for a loan but I need a co-signer. However everyone I kow has bad credit. How can I raise my score within the next couple months so I can get a loan without a co-signer? Or at the very least have pretty high credit. I’m aiming for a 750.
1. Pay every bill on time.
A late payment will instantly drag down your score. A few months history of timely payments, however, can help boost it.
2. Pay down the cards that are maxed out first.
You’ll get points deducted from your score any time you charge more than 50 percent of the limit on any kind of credit card.
3. Do not cancel any credit cards.
Counterintuitive, yes. But not when you consider that one-third of your score is based on how much of the credit available to you you’re actually using. Cutting up credit cards will automatically decrease the amount of credit you have available. Better to stick the cards in a drawer until your score is back on track.
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Be grateful that you have a 708 at 19 years old.
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I do not think it is the credit score stopping you getting your loan it is your age and income. Most big loan companies and car dealership like people to be 21 it is easier in court if you default.
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With a 708 score, I’m very suprised you aren’t able to get a loan without a co-signer.
Do you have any derogatory marks on your credit report? With a 708 score, I doubt you do.
But, if you do, you could dispute those negative marks with the credit bureaus.
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http://aaacreditguide.com/forums/beginners-credit-information/1023-introduction-to-credit-repair.html
Your credit score is not the only factor in getting loans. If you have a 708 credit score, in most cases that is good enough to get a loan without a co-signer. If you had the income to back it up.
It depends on the purpose of the loan as to the income requirements. However, ideally lenders don’t want to see more than 15-20% of your income going to all of your debt payments(Car, Credit Card, Other loans), and your total debt to income including Housing, Taxes to not exceed around 40%. If you would be exceeding that you probably will not get approved no matter what your credit score is.
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Take a look around you. Everyone you know is broke. Broke is normal. Broke is playing the credit score game. Your only 19 straight out of high school and these guys have already given you three credit cards. Go talk to everyone you know and ask them has having a credit card really brought joy into their lives. Sure they are great at the mall but when payment time comes and late fees and over the limit fees and collections come around how great are those cards then. Ask them how would it feel to be out of debt today. How would having that bill lifted off their shoulders feel to them? How would not having to deal with payments and credit scores and fees feel? I gaurantee that no one will say that all the hassle is worth the convenience. They will rationalize with air miles and small cash back bonuses, but is all that really worth being subject to credit. Now is the perfect time to start being weird and actually have some money. Cut up those cards and close those accounts. Start your life in freedom not in slavery to the credit card companies and your credit score.
If your score is already 708 and you can’t get a loan then that shows you that the almighty credit score is not so almighty. Unlike the credit card company the loan office is using it’s head. Here is a person just out of high school. Probably doesn’t have a great income. There is a lot of risk there, better get someone else on the loan in case they can’t pay. Not the credit card company. Hey here is someone with a name let’s give them a card.
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http://www.daveramsey.com
For a 19 year old you have a pretty good score already. You can’t rush it. Try to make sure the balances are not too high on your accts. Keep them open to continue paying so the creditors can watch. Most creditors are interested in the past year to see how you are paying. Watch out and don’t apply at too many places because the inquiries will stay on your record for 2 years and too many will scare off creditors. Just keep your accts in good standing and your score will increase. It could 3-6 months or a year depending on the creditor. Some creditors will lend smaller amounts. A good way to start is with 90 day same as cash accts. Good luck!
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I worked at Consumer Credit Counseling Service for many years.
Many young people have "thin" credit files and good scores. A "thin" file is one with only a couple of tradelines and may have a short history of less than 24 months. Anyone with experience reviewing credit reports will recognize a "thin" file immediately and will normally require a co-signor. Oftentimes a significant down payment can be made in lieu of a co-signor on an auto loan. For a personal loan with no collateral you will need a co-signor.
Anyway, there are several ways to get your score up. Open a savings account and borrow against it. This will give you an installment account to go along with your revolving credit and will be worth some FICO points. Ask mom or dad to add you (as an authorized user) to one of their good credit card accounts if they have any. Save up a decent down payment of 15-20% to put down on a car. Avoid applying for new credit unless it is necessary. Keep all of your existing accounts in good standing. Keep balances on revolving accounts below 30% of your limit.
Good Luck
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I agree with Debbie F. There other factors loan companies consider prior to approving loans. I have a credit score of 755 but still was not approved for a loan. Why? The bank informed me that: 1. "You have a relatively short history of using credit, 2. Your credit report lacked recently reported balances on revolving accounts, which may include credit card accounts, 3. You have had too many credit bureau inquiries in the last 12 mos, 4. Your revolving accounts, including credit cards, have not been established long enough."
Like you, I also do not know of anyone with a good credit rating; otherwise, I could piggyback – have someone (with a good credit) add me as a joint-account holder so that their credit-using history would reflect on mine.
Depending on how big of a loan it is that you want, you can probably ask your credit card company for this loan. I am with Capital One and they sent me offer on a loan for $15,000… They also offered me balance transfer at a rate of 2.9%, which I didn’t need at the time. When the time came that I needed it (after about 2 weeks) I was told I was not eligible anymore!!! I asked to be transferred to the Closing Account Dept; and guess what? They gave me the loan and increased my credit limit! Call your credit card company.
Good luck!!!
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http://www.aol.com
Any more than 2 major credit cards lowers your credit score, so pay off and close 1 card to start. 2nd lower the amount owed on the other two cards to less than 40-50% of the available credit and keep it that way. Check your credit report for possible innaccuracies (ie late payments that shouldn’t be there, a medical bill you didn’t know was in collections) and get them fixed. The 3rd major factor to your FICO score is length of credit history, so keep the 2 cards open and low and that will help build your score.
The FICO score system is not ment to move fast, there are no "quick" ways to raise your score a dramatic amount in just a few months. That is why it is important to pay bills on time and keep balances low so 5 years from now when you are trying to buy a house and not a car you aren’t dealing with a low score!
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1. Pay every bill on time.
A late payment will instantly drag down your score. A few months history of timely payments, however, can help boost it.
2. Pay down the cards that are maxed out first.
You’ll get points deducted from your score any time you charge more than 50 percent of the limit on any kind of credit card.
3. Do not cancel any credit cards.
Counterintuitive, yes. But not when you consider that one-third of your score is based on how much of the credit available to you you’re actually using. Cutting up credit cards will automatically decrease the amount of credit you have available. Better to stick the cards in a drawer until your score is back on track.
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bankrate.com
well first you can get more credit cards as long as you pay them back before or on the due date and that should bring it up some and as a 19y/o you should be happen with that score most would kill for that
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Income isn’t used in computing credit score.
19, you don’t have a long credit history – you will be pressed to get a decent loan for any money based on this alone.
If you have 3 credit cards keep a balance >=30% but <=70% and pay the monthly minimums (plus whatever you want).
Stay the course – your score will increase with time if you keep everything going in smooth order. Try not to overextend yourself.
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By knowing these you can keep a check on them and make your credit score a healthy one.
1. Re-payment history
This factor carries the highest weight in your credit report. How steadfast are you in repaying your loans, makes your credit report shine. Experts claim that this factor alone accounts for 35% of points in your credit score. So, if you falter on repayment front it is sure to be reflected poorly on your credit score.
2. Outstanding debt
The next comes your debt burden. How much you owe is a factor that according to experts carries about 30% weight in your credit score. This is
30% is based upon outstanding debt. To get a better score it is advised that you keep your outstanding debt to a minimum.
3. Length of your established credit history
The time for which you have a credit history also matters. The longer your established credit history the more credit reporting agencies believe in you. This could be simply because of the fact that they have more data to analyze your financial position. Experts give it a 15% weight in determining your credit score. Read more from: http://www.credit-card-gallery.com/article/204,5_critical_factors_affecting_your_credit_score
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