Credit Finance

Improving credit scores is much easier than it used to be. There wasn’t as much information available as there is now. A few months ago I needed to raise my credit score by just 25 points. To be honest, I really didn’t want to have to pay off any of the debt I had. I wiped the dust off my old manual on how to improve a credit score and started reading up on tactics that would help me do just that without paying my current debt.

To begin I started by adding more credit accounts. Sounds wrong, I know. What you need to understand is that the more open available credit you have the better the model scores you. Let’s use me for example; I had three credit cards, all at about 90% of the available credit. If I have credit limits of one thousand dollars on each. I owe 2,700 out of a possible 3,000. The model would take this as to high a yield a lower score. By adding three more accounts of 2,000 each you open up more available credit. Now the model sees you at a lower percentage. 2,700 out of a possible 9,000 is much better. It doesn’t end there.

Improving credit scores with this tactic actually continues into my next point. The second step you take is to lower the balance on the existing accounts by spreading the 2,700 with the new credit accounts and the old accounts. What you want to do is keep all of the six accounts in this example at 30% or below of the current credit limit. The scoring model, again, would see this as an improvement and give a higher score. All without paying a single dime towards your debt!

My favorite technique, by far, to improve credit scores is this one. It involves a favor from a family member and responsibility on your side but it can do miracles to a credit score. Here what you do. Assuming you have a family member who agrees to this. You ask them to add you as an authorized user to the account. The purpose of this is to take advantage of the well established accounts that person has. Their credit history and high credit limits would help tremendously. Improving credit scores with this one is easy. The only draw back is that you can’t transfer debt into them. Or can you? Just kidding don’t take any bad ideas from me. Just the good stuff!

There you have it improving credit scores is that easy. Without paying off the debt you should be able to generate a 30 to 60 point increase. You can do these in any combination or all three. I used my sister for this one. No, I didn’t transfer any debt to her, incase you were wondering. I got the 25 points I needed and much more.

Credit repair techniques change. Using the most current techniques to dispute correctly has worked well for me. I understand my credit now and strongly recommend consumers understand this critical aspect of their financial life. There’s a lot of information out there. Below is what helped me the most.

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