This topic about ones credit score was mention on another thread. So I'm starting one, to discuss, input the do & don't about credit scores. What method is best to help an individual build up their credit. What is the biggest mistake to mess up your credit. What is best to help your credit.

Let me start:

First and foremost is to pay your credit card on time! If you are behind for any particular month, just call & advise your creditor, they'll waive a month for you. If you are 2-3 days late, they charge $39 late fee, you can call them and let them know what happens:

ie: that you already send out check? But why they did not receive. Or you already process online but for some reason it did not go thru. The representative will try to reject your request, then you insist you want to talk to supervisor or one that has the authority. Chit happens, people do forget to pay sometimes, so do not let it be when it happens. Call them and get late fee waived, also they don't record your late payment with your credit bureau.

One must hustle aggressively...can't be lazy.

 

Open a credit card set-up automatic bill pay for a bill or something with a recurring charge. Than set up an automatic transfer from you checking acount to your credit card so the transfer will go through a few days before you need to pay your credit card bill so there is a +(positive) balance in your credit. To them it looks like you pay your credit card bill early and they like that!! once you have that set up cut up the card and never use it for anything else. I started this when I turned 18 and my score is awesome. If all that makes sense.

 

The fastest way to build up your credit is by paying off an unsecured loan. If financing an automobile or a bike, you ride is the bank's collateral. Meaning if you don't pay, repo man on the way. But unsecured loan, means there is no collateral. So how do one without any credit? Or bad credit walks into a bank and apply for a unsecured loan?

Anyone?

 

You rather cut your credit card & leave balance at zero rather than closing your account. If you close account, your credit score will drop. Just make sure credit card don't have a annual fee, if they do, call them to waive, if they don't waive annual fee, then threaten them by closing account. The key is to keep account open for long

 

Unsecured Loans are very hard to get. The way they figure out if you will qualify for one is based on credit and what you make annually. The bank will want a 90% chance that they will be payed if S--- hits the fan. So example my unsecured loan that i used to buy my bike was granted to me because of the stability of my job. It let me come down to a 70% chance that they would not be re-payed. If your job or state is an at will firing they will want closer to 90%. If the bank losses out on this type of loan then its all a loss. So a smaller loan is easier then say the 6000 i got loaned. granted that was at that time 1/6 of my pay check for the year.
The best thing to boost your score after paying your bills on time is a Large loan. So 15k and up is a great way to get that score up. Granted this takes time and yes your in debt but after paying that bad boy off your score jumps up fast. It shows lenders that you can make payments and hey they will make some money off you in the long run. Also when you start looking into buy that house its a little easier especially if the stupid home market recovers. Lenders love to see long good standing credit. A few missed payments here and there will hurt a little but they make all the money in the end.

Now you know some good ones here are some things you may not think about when you aren't doing anything in the credit scores.

1. Applying for loans/credit cards more then twice a month will hurt your score. When you go and try and say get that best buy card and turned down for it and then say try your luck at fry's and get turned down will bring down your credit score. Why not sure but it does.

2. Number 2 is one you really may not think about. Not having revolving credit at all. So you don't have a credit card or some loan. You aren't hurting your score but you by no means are you helping it. If you go for long amounts of time and i a talking 5-6 years at a time with no revolving credit and decide to get a even a small $500 credit card or a substantial loan you will be turned down just like you were when you were 18 and looking for a loan. Crediters look at that history and start asking why was there no credit activity? Where you in jail? Did you file for bankruptcy and it not show? All those what if things start playing out. An example is my grandmother. She was 70 at the time and wanted to get a new car. Well her husband had the credit rating and she did not. Times have changed and when they pulled up her credit rating it was in the tank, not because she was late on bills or failed to pay but because she had been paying for everything in cash for decades. Her first 4 cars she had payed for is cash. The car before this one she had payed in cash and that was in 98. Walked into the dealership and smacked down the 18k and drove off. Of course there were some papers to file but still it was payed for in cash. She went in to trade that car in for a new camery and decided she didn't want to part with cash this time. And she didn't qualify for the loan simply based on credit score. Granted she did go back and pay cash again just to spit them but that is a different story. LOL


Informational news

As someone that did go through some ruff times and ended up payed way more for some stupid credit cards then they were worth. If you do default on a card make sure that if the debt company comes looking for a settlement get it in writing. I have been trying to fix my case for the past 3 years. As i have been rebuilding my credit i took this year to take a look at my score as i have been worried more about who i owed verses the score it self. Turns out that the 2 cards i had made a settlement to pay out and closes the accounts. Turns out that even thou i had payed the balance they continued to report on my accounts at a delinquent status for 2 years after payment was made. Of course that was several moves ago and alot of time has passed but now i have gotten with legal advise on how to fix it.


That is just my 2 cents please don't quote me word for word especially in the percentages just what i have played with when trying to obtain a unsecured loan.

Ok let me get off my soap box.

 

Yes, what's that website provided by our government...you get 1 free credit check report a year. Make sure it's the .gov website. One every 12 months, I obtain a free report. Amazingly, some inform on there maybe wrong and hurt your credit for years...if you don't find out. What happen was one of my credit card was zero balance. I don't want to close account because I had them since I was 18. Closing it will hurt my credit so I cut card and left it. Turns out, they apply a $65 charge for some protection program without my approval. It's one of those teller marketing phone calls which I hang them up. They said I agree to program and charge my credit card $65. Me not knowing of this charge, and I've moved...so invoice did not forward to my new apt. So account was $65 delinquent since I did pay or dispute charge. Then add on late fee ...so I'm few hundred under water with my credit score plummeting....in the toilet. So it is important to make good use of that government free credit report every year.

This is good that we share our experience to younger members...

 

Here is that free site that the gov runs. Its not a dot gov site its a regular dot com site. been there many few times.

https://int.annualcreditreport.com/c...26772861217081

Supposedly there is also a site that you can get your free credit score but i have not been able to find it. Everyone wants some money.

 

I've done this in then past & it might help some of us improve credit score fast.

Just say you have $500 to burn...

Take $500 and open a CD for like say 6 mo.

Weeks later go back and ask for unsecured loan of $500. Tell bank you don't want to withdraw CD, and they can use that as collateral. So the bank lend you $500 for 1 year term.

You then take that money and open another CD with other banks...and so on for a few banks.

6mo later or 12mo...when the CD matures...take that money to payback all loans....but meanwhile remember to make minimum Payment.

Using this method will strengthen you credit score drastically...for myself, instead of using $500, i use $5000

 

All credit cards suck......all of them. They are a bunch of no good people.

I had a card for years and was never late. I put a check in the mail and it was one day late due to a holiday on Monday. They raised my rate to 33% out of the clear blue. I argued with them and the result was me canceling my card.

I had three cards with Chase. I could not get away from them. They kept buying my other cards. Once they had me they raised my rate form 7.5% to 21.5%. I call them and the end result was me canceling all cards with them.

I had a Discovery card for 11 years and one day they raised my rate to 19.5%. After talking for 2 hours with different managers, they told me that the increase was due to normal operation practices. They told me that they would do me a HUGE favor because I was such a great customer, they would give me 17.5% interest rate. I argued that I was at 7% before the raised it and the end result was that I canceled my card with them.

I pay any credit debt before I am charged interest. I really am not effected by the interest rate, it's the principle. I have spend hours and hours talking with those nasty bastards. I get nowhere with them.

 

7% or any rate similar is bait. They want to to transfer balance, sign up credit card with them...then raise rates after.

Think about it...mortars rate is what? 5%...6% though real estate market is down but would you think credit card will let you have a rate near mortgage rate?

I think 12.99- 14.99% is fair...anything over 18% is ridiculous...I can't believe this guys didn't lower your rate somehow? And let you cancel...

There are some good credit cards out there, you have to find them...actually Suzy Orman does have some good info on this....

I've stopped using credit cards now...