Raise Credit Score - 2 Tips
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. Your ratio of available credit to debt is good.
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.
If you have trouble getting approved for new lines of credit, then consider being added as an authorized user. Find a friend or relative with good credit and ask them to add you as an authorized user to their credit card account.
This is commonly called piggyback credit. There are rumors that the credit bureaus are not going to give a benefit to an authorized users' credit report.
However it is expected to take up to 8 years before this policy change will take effect. Thus you can still receive benefit from being added as an authorized user.
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.
A credit card with your name on it is then issued and mailed to your home. I suggest giving this credit card back to the account holder. This way they assume no risk.
The accounts' details are then reported on the original account holders' credit and yours. This way you receive the benefits of on time payments and available credit.
As I said, this will only be effective for a limited time. So take advantage while it still is effective and stop paying the high cost of low credit.
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