how to increase credit scores?

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How to increase credit scores? In any field, there are two ways to make progress. One method is to strive to do what no one has done before. The second method is to avoid the mistakes everyone has made. The first method is important. But no progress is possible without the second method. Let’s try to understand. A man buys the most exotic bouquet for his girlfriend. He wants make a good impression. Yet, his exotic gift will do him little good if the man fails to check his bad odour coming out of his mouth. Buying a bouquet of Chinese or Japanese flowers constitutes the first method. Maintaining a basic hygiene defines the second method. Both are important, but the second is essential. Let’s apply this analogy to the techniques on how to increase credit score . The most innovative ways to raise credit scores fast can fail if you refuse to adhere to some mundane but essential principles of money management. The basic rules of financial management are absolutely vital and surprisingly simple. They involves common sense and a knowledge of what works and what does not. There is already a ton of information sloshing around the internet on what works. This article takes a critical look at three common recommendations to find out if they really help you raise your credit score fast: (a) You need a credit card to improve your FICO score False. Sometimes, even the people who have been working in finance industry for several years do not get it right. FICO scores do not require you to have a credit card. You can improve your scores without paying a single cent on credit card interest. It is sufficient to have an account that has been active for at least six months. If you have been paying your bills on time, every time, your scores will improve. Lesson: Do not waste your money on a credit card, if you do not want or need one. (b) You close an account and you improve your score Another fallacy. In fact, closing an account can have the opposite impact. Let’s say you have three credit cards with a limit of $10,000 on each. If you carry a balance of $3,000, your utilization rate is a solid 10 percent. Now close two cards. You credit stays where it was before, but your utilization rate jumps to 30 percent. Higher FICO scores require a lower utilization rate. Lesson: Do not close card to improve credit scores. It is not effective.

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Page 1: How to increase credit scores?

How to increase credit scores?

In any field, there are two ways to make progress. One method is to strive to do what no one has done before. The second method is to avoid the mistakes everyone has made. The first method is important. But no progress is possible without the second method. Let’s try to understand.

A man buys the most exotic bouquet for his girlfriend. He wants make a good impression. Yet, his exotic gift will do him little good if the man fails to check his bad odour coming out of his mouth. Buying a bouquet of Chinese or Japanese flowers constitutes the first method. Maintaining a basic hygiene defines the second method. Both are important, but the second is essential.

Let’s apply this analogy to the techniques on how to increase credit score. The most innovative ways to raise credit scores fast can fail if you refuse to adhere to some mundane but essential principles of money management.

The basic rules of financial management are absolutely vital and surprisingly simple. They involves common sense and a knowledge of what works and what does not. There is already a ton of information sloshing around the internet on what works. This article takes a critical look at three common recommendations to find out if they really help you raise your credit score fast:

(a) You need a credit card to improve your FICO score

False. Sometimes, even the people who have been working in finance industry for several years do not get it right. FICO scores do not require you to have a credit card. You can improve your scores without paying a single cent on credit card interest. It is sufficient to have an account that has beenactive for at least six months. If you have been paying your bills on time, every time, your scores will improve.

Lesson: Do not waste your money on a credit card, if you do not want or need one.

(b) You close an account and you improve your score

Another fallacy. In fact, closing an account can have the opposite impact. Let’s say you have three credit cards with a limit of $10,000 on each. If you carry a balance of $3,000, your utilization rate isa solid 10 percent. Now close two cards. You credit stays where it was before, but your utilization rate jumps to 30 percent. Higher FICO scores require a lower utilization rate.

Lesson: Do not close card to improve credit scores. It is not effective.

Page 2: How to increase credit scores?

(c ) Low credit score affects your chances of finding a job.

It is a big misconception. Most employers cannot even get your credit score. Their access is limited to “credit reports” (not credit scores) that your creditors provide. Employers use the data in the reports to gauge how responsible you are in financial matters. You can dispute your credit reports. Your creditors can make changes in them.

Lesson: It is smart to make sure the data in your credit reports is correct.

When it comes to increasing your credit scores, it is equally important to be aware of what does not work. This information allows you to redirect your efforts to places that are going to produce results.