Improve Credit Report - 2 Ways
Author: MattDouglas Total views: 8 Word Count: 378
You can improve your credit score by having an open major credit card. On this credit card you should try and keep the monthly balance around 10% of your available credit line.
If you have an available credit line of $2,000 then you want to keep your monthly balance at $200. This will show the credit bureaus two positive things:
1. You do use your credit.
2. You have a good ratio of available credit to debt.
This second factor is very important to the credit bureaus when calculating your score. This is a way you can show that you do have available unused credit.
If you can show you have available credit your score will receive a bump. This tip is most effective with an unsecured credit card. However any revolving line of credit will help your score.
Another tip is if your credit is low and you have a friend or relative with a good credit score. Then ask this friend or relative to add you as an authorized user to their credit card account.
This is called piggyback credit. There have been policy changes to discredit authorized users from receiving the benefits on the credit report.
However the credit bureaus are such large bureaucracies that this new policy will not take effect immediately. It is estimated that authorized user's credit score will still get a bump for the next 6-8 years.
If you choose this route then make sure that you trust the credit card account holder and their financial position. If this account goes delinquent or gets behind it will hurt your score.
The account holder just needs to call in to the credit card issuer and add you as an authorized user. This can all be done over the phone.
The credit card issuer then sends a copy of the credit card to your home with your name on it. I suggest returning this copy of the credit card to the account holder.
Then all the specifics about the account; payments, balance, limit will be reported on your credit too. This is a great way to show the bureaus that you have made on time payments and have available credit.
It is in the works to discount this method as a way to build credit. However right now it works and it's very cheap and easy.
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