Establish at least two years of solid credit history.
Your credit report should have one small credit card and one installment loan. With your mixture of credit trade lines and two years of a solid payment history, it’s time to go for the big bank credit cards like Visa and MasterCard. The FICO scoring model really likes to see consumers with credit cards from major banks. Go to a major bank, like Bank of America, and ask them what type of credit score you would need to qualify for their Master-Card. Then apply to create excellent credit.
What is an authorized user?
Have a friend or family member with good credit call up their credit card company and have them add you to their account as an authorized user. The credit card company will issue a card in your name. Once the card arrives at your friend’s house, he or she will cut the card up. Wait a month later and check your credit report to see if your friend’s entire credit history for that card is on your credit report. This is a fast way to build credit within 30 days. Now, the downfall to this method is that if your friend makes a late payment or refuses to pay, your credit report will show the same negative activity, therefore damaging your good credit rating. Do consider the potential consequences carefully, before moving in this direction.
How can I add new accounts to my credit reports?
The first step you can take in strengthening your credit situation is to write to the credit agencies. Request that they add your good accounts if they do not appear on your credit report. Since the main purpose behind adding accounts to your credit report is to strengthen your report, you only want to add accounts that are deemed to have a perfect payment history.
Normally, utility companies and cell phone companies do not report your payment history to the credit bureaus. However if you write them a letter requesting that they add your good payment history to your credit report, they might grant your request. If, for some reason, they do not add your account, get copies of your payment history and submit them to the credit bureaus yourself. Credit bureaus don’t have to add this information, but they may place it on your report for a fee.
I just got rejected for credit, so what does a thin file mean?
It means that you do not have enough trade lines in your credit report to calculate a credit score. It may also mean that your lender doesn’t see enough information to evaluate your credit worthiness. People who are divorced, teenagers just turning 18, and immigrants all fall into the category of having thin files. FICO created a new way for consumers with a thin file to produce a credit score. It’s called an Expansion Score, and it uses information from nontraditional sources to calculate a score. The program uses payday lenders, check monitoring companies, rent-to-own stores, utility information, and public records to help calculate a score.
What do creditors like to see on credit reports?
Make sure your credit report has your present employer, previous employment, residence, and phone number, since creditors like to see this information when you are applying for credit. They are checking for stability, such as how long you have been at your job and your home.
How will paying with cash help me build credit?
Start getting into the habit of paying cash or paying with your debit card. Paying with cash helps you manage your budget, and it restricts you to the amount of things you can buy. If you can’t afford it, don’t buy it. In the long run, this will help you with management skills when it comes to paying down your credit cards and personal debt. Use your debit card on an emergency basis only. Debit cards can cost you over-the-limit fees and insufficient fund fees if you don’t track your spending.
How many credit cards do I need?
Carry one or two bankcards, one retail card, and one gasoline card. Creditors want to see how you will man-age more than one card as far as payment history goes. If you can’t pay the minimum monthly payment every month, don’t use most of the cards.
If you run into credit report issues, that is where we come in.
Bad credit can:
· make security deposits go up or even make it difficult to find an apartment to rent.
· makes you pay more for insurance or buying a car with a loan.
· stop you from buying a home which is a huge asset rather than spending on an apartment where you gain nothing.
You can call us at Fresh Start Credit Recovery when you are ready or click here to message us on Facebook by clicking here: https://m.me/freshstartcreditrecovery
Based in Olympia, Washington, Fresh Start Credit Recovery helps you fix your credit report which can help to raise your credit scores and give you the life that you want to live. http://www.FreshStartCreditRecovery.com