Raise Your Credit Score
When your credit score needs a lift, try this.
Some very good ways to raise your credit score within a month or two
are to do the following:
1. Look at how much you have on your credit card as compared to your maximum credit. For Example: You have a $5000 credit limit and you have a $3000 balance on that card. (Apply this logic to all of your cards)
You would be currently using 60% of that card.
When you get over 50%, your credit score drops dramatically.
If you keep it between 10% and 25% it would help greatly to raise your credit score. I will tell you, that I have found that their appears to be a big tier at 50%, than 33%, than 30%, than 25%.
In this scenario, if you carried a balance of $1000 on a card with a $5000 limit, you will raise your credit score significantly.
2. If you have a vehicle, and you can pay that balance down to 10 - 25%, it will help to raise your credit score as well. The same percentages from the above scenario apply.
3. Another way to raise your credit score is to pay your credit cards weekly as opposed to monthly. There are two reasons to support this. One, at least no bank can claim they didn't get your payment or they lost it thereby charging you a 30 day late fee. The second reason behind this is, a strategy the credit scoring people hold sacred. One of the algorithms is how much you pay each month. Contrary to popular believe the credit cart companies do not want you to pay your credit off. They want you to pay small consistent amounts so that they make money
on interest. This is what banks are in business for. When you pay in smaller amounts (pay the minimum payment at least) the algorithm shows you are paying a quarter of what you are paying. Making you a better borrower.
Banks are not thrilled when you pay off your credit cards. You are scored based upon many attributes. The credit reporting agencies don't want you to know the algorithm. If you can, keep in mind the credit reporting companies are there for the banks. They report how you spend and how you pay your bills. Credit scoring is all about risk to lenders, lending money to you. Your Score represents your history on things for the past 1-10 years.
One year for credit inquiry's and 10 years for bankruptcies and 7 years for everything in between. For the most part, your credit score is a 2 year past history snap shot.
Credit inquiry's should be done in packs,.... if you are buying a car you should get your credit pulled by the people you want to buy a car from. If more than one dealer has the same car, you could shop both dealers and get your auto loan from other sources as well such as a bank or credit union. You should do
E-mail or call if you have Real Estate questions.
it in short periods of time... no more than 30 days for all the items for the purchase you are going to make.
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CALIFORNIA DEPARTMENT OF REAL ESTATE LICENSE 01312992