Hello Ladies! By no means am I offering “professional advice” on finances. However, I am sharing common sense financial strategies that can help improve your credit. Over the next few days, I will add two more sections to the topic of credit, debt elimination and shopping for credit cards. I suggest you read these posts at your leisure and apply this information if you have not done so already. We have to become more fiscally responsible with our money and that should begin today- right now!
1) Pay at least the minimum amount due for ALL cards on time because you must establish a good track record. Usually a twelve month period of timely payments will boost your credit score tremendously. Did you know that if you miss a payment on any credit card, your low interest rate on the one card you pay on time every month will be negatively affected? Ever wonder how your low interest rate slowly crept up even though you made timely payments? Read the back of your credit statement to find out why.
2) Lower debt on existing cards. This will increase that debt to available credit ratio which counts for 30% of your FICO score. Remember: 50% debt to available credit ratio should be your maximum. The lower the debt to available credit ratio (lower than 50%), the better.
3) Clean up negative items on your credit report. I use a company called Credit Attorney to help me clean up my credit report. They have done wonders for my score by disputing negative items on my credit report on my behalf. If you want more information about Credit Attorney, please visit- http://www.creditattorney.com/ or email me. I’d love to tell you more about their services and share my experiences with you. Remember: you can always dispute negative items on your credit report yourself. If you let a company dispute on your behalf, be careful which company you choose-do your due diligence.
4) Establish a good mix of credit if you have no credit at all or not enough credit. I’m not saying to get a mortgage or car note, but I am saying to establish credit with at least one (maybe two) major credit card companies if you have not done so already. If you are working to become more responsible, open a retail card, too, but only to create a good mix of credit. Charge responsibly.
5) Become an authorized user on someone else’s card who has good credit. Make sure it is someone whom you trust who has excellent credit. Ask them to add you as an authorized user to one of their cards. You inherit their excellent payment history for that card for as long as they had that card. Your credit has no adverse affect upon theirs, but theirs has a wonderful effect upon your credit. It will boost your credit score. Things to consider:
- Don’t use this person’s card for purchases- don’t even request to have a card sent to you. This is a strategy to boost your credit, not to give you access to more credit.
- Select a card with little to no debt on it as well as a nice size limit. This will help your debt to available credit ratio.
- Caution: if this person suddenly catches that nasty bug called Nopayititis (Hallelujah! I am cured.), your credit score will suffer. Make sure they pay this card on time each month.
If you have any questions or comments, please feel free to leave a comment.
P.S. Remember, everything has beauty—including YOU. It just takes a true D.I.V.A to see it!
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