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Level 6

How to Raise Your Credit Score

Pay your credit card down to $10 balance every month.
Level 2

How to Raise Your Credit Score

 

why am I going thru all of this? I just want to get my Tax Return completed and filed.

Level 2

How to Raise Your Credit Score

thank you all and a lady who really took care of me yesterday  she was great

Level 7

How to Raise Your Credit Score

Sounds a little tricky, but understandable, now I would have to find a card to get the charge n pay .. to get my score up...thanks
Level 6

How to Raise Your Credit Score

Everyone is giving good advice, but one thing I may have missed from other posters is as follows...
Know when your CC is posting its monthly update and reports to the credit bureau, if its say the 5th of every month, pay off as much as you can to bring down your Debt To Income ratio. Let your score reflect the lower balance and you're good for the next month. Since you're having trouble keeping up with the payments, sounds like something is going to have to be sacrificed until it gets under control. This is one of the hardest parts of getting out of debt, btw... make a budget and figure out where you're truly letting your money go down the drain.
I hate missing out on a cup of coffee in the morning, but every cup of Joe added up, create and stick to your budget, I can now successfully budget my coffee into my monthly expenses.

Also base your total expenditures to 80% of you gross income instead of 100% of your gross income and build an emergency fund.
Always remember there are two types of interest, the interest you earn and the interest you pay.
Get to earning your interest.
Level 2

How to Raise Your Credit Score

35% of your score is made up of Payment History - that means keep your positive accounts in good standing and if any accounts have late payments or are in collections, call LexingtonLaw or a credit repair company that can help. They work to remove negative items. Paying them off doesn’t raise the score and the items stay for up to 7yrs whether you pay them or not. Removing them can help better the score.
30% is made up of your Credit Utilization - or the amount you carry on your CCs. Keep the balance as low as possible. The only reason people say to keep a balance is to keep the CC from closing the account but this can only happen if you never use your card. So use your card often, but pay it in full before the due date to prevent paying interest.
15% is made up of Credit Age - or how long you’ve had accounts open. CCs are usually great for this because they never close (as long as you don’t close it yourself or the company doesn’t close it). Loans will eventually end and acune your age is an average of all of your accounts, closing or paying off loans can lower that average. So never close accounts and avoid small loans that get paid off quickly.
10% is your Credit Mix - this is the types of accounts you have. The more diverse your credit it, the better the impression the lender gets because it shows you can handle different types of accounts, car loan, home loan, CC, and maybe a personal loan. That’s all you need.
10% is New Credit or Inquires - simply put, don’t apply for anything unless it’s necessary. More than 4 inquiries in a 2yr timespan makes you look like a high risk.

I’m a credit consultant with LexingtonLaw by the way, for the past 6yrs. Hope the information helps!
Level 6

How to Raise Your Credit Score

Mortgage Underwiter here .  I know someone said we don’t look at credit scores and unfortunately that is not entirely true.  The break point for the credit score depends on the type of loan you are interested in.  For example, if you are going with a government loan such as an FHA loan or a Bond loan you could be as low as a 620 depending on your situation.  The problem with this is the lower your score the higher your points and interest rate which translate to higher monthly payments or even mortgage insurance (with FHA you will have to pay MIP regardless).  

 

Some sound advice from someone with too many years experience to share without aging myself who also survived the huge housing collapse.  Don’t even look for a mortgage loan until your “mid-score” is 680.  Anything lower than that and you’re looking high risk lending (potentially subprime lending).  Patience and a consistent repayment history is key, your credit score is earned overtime and no one really knows 100% how it’s calculated.  It’s called “Black box technology”, only the developers working for the credit bureaus fully understand the technology because it’s situational.  

 

Another quick tip, if you have decent repayment history but hit a “rough spot”, document it.  Most underwriters will work with you if you can explain why you had issues and have since gotten back on track.  Also, with mortgages you can use non-traditional credit (things you pay monthly to companies that do not report to a credit bureau) some examples would be; electric bill, gas bill, cell phone, rent payment, even personal loans as long as you can provide copies of monthly checks or money orders issued for payment.

 

I hope this helps and good luck on your home search!!

Level 2

How to Raise Your Credit Score

Also, it is better or easier to get a home loan first then an auto loan … and this could be directly related to credit scores … or not? But, life of course can't always play out like that. Because it's a relatively new car loan … wait until the car is almost paid off … (less than 6-9 months) with on time payments of course to apply for a home loan. Presuming you aren't in a rush and how long the car loan is for. Otherwise, pay more than the minimum payment every month; even if only an extra $5 or $10 dollars. The same with any credit card(s) you may have. Do this for a solid year before buying the home and watch how those scores improve. Do not pay off the credit cards in full unless a bank ask you to "qualify" for a certain loan amount. This is based on debt credit ratio … and not necessarily to improve the score. It may in fact lower your score to pay off in full. Thus, let the banking or loan institution 'see' the highest score first … and they will at times advice some customers to pay off a credit card to help get approved. But, that's more related to expected future monthly payments. That is rare … so don't be worried. Better to save the money to pay off a credit card or two and enough for down payment and closing costs … and see what different institutions suggest. (I wouldn't offer to pay them off up front either … only if you don't like their deal or interest rate offered.)

Level 6

How to Raise Your Credit Score

I haven't been approved for a credit card. So I wouldn't know the answer
Level 2

How to Raise Your Credit Score

Did they tell you why you weren’t approved? If you got denied, you’re entitled to a free report to see what may be going on.
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Level 7

How to Raise Your Credit Score

Have you tried annualcreditreport.com and screenshot your debt collectors and send them a letter to Equifax, TransUnion & Experian? I have the information to provide the help.
Level 7

How to Raise Your Credit Score

Send me the info and I will try it as you explain it thanks..
Level 2

How to Raise Your Credit Score

Won’t leaving a $1 balance when paying credit card statements subject you to a penalty?  Don’t most cards base their penalties for lack of payment of the complete balance on a percentage of the average of your balance for the last month?

Level 2

How to Raise Your Credit Score

By paying your bills
Level 2

How to Raise Your Credit Score

Re: How to Raise Your Credit Score