| Improving credit scores is much easier than it used to | | | | of the six accounts in this example at 30% or below |
| be. There wasn't as much information available as | | | | of the current credit limit. The scoring model, again, |
| there is now. A few months ago I needed to raise my | | | | would see this as an improvement and give a higher |
| credit score by just 25 points. To be honest, I really | | | | score. All without paying a single dime towards your |
| didn't want to have to pay off any of the debt I had. I | | | | debt! |
| wiped the dust off my old manual on how to improve | | | | My favorite technique, by far, to improve credit scores |
| a credit score and started reading up on tactics that | | | | is this one. It involves a favor from a family member |
| would help me do just that without paying my current | | | | and responsibility on your side but it can do miracles to |
| debt. | | | | a credit score. Here what you do. Assuming you have |
| To begin I started by adding more credit accounts. | | | | a family member who agrees to this. You ask them to |
| Sounds wrong, I know. What you need to understand | | | | add you as an authorized user to the account. The |
| is that the more open available credit you have the | | | | purpose of this is to take advantage of the well |
| better the model scores you. Let's use me for | | | | established accounts that person has. Their credit |
| example; I had three credit cards, all at about 90% of | | | | history and high credit limits would help tremendously. |
| the available credit. If I have credit limits of one | | | | Improving credit scores with this one is easy. The only |
| thousand dollars on each. I owe 2,700 out of a possible | | | | draw back is that you can't transfer debt into them. Or |
| 3,000. The model would take this as to high a yield a | | | | can you? Just kidding don't take any bad ideas from |
| lower score. By adding three more accounts of 2,000 | | | | me. Just the good stuff! |
| each you open up more available credit. Now the | | | | There you have it improving credit scores is that easy. |
| model sees you at a lower percentage. 2,700 out of a | | | | Without paying off the debt you should be able to |
| possible 9,000 is much better. It doesn't end there. | | | | generate a 30 to 60 point increase. You can do these |
| Improving credit scores with this tactic actually | | | | in any combination or all three. I used my sister for this |
| continues into my next point. The second step you | | | | one. No, I didn't transfer any debt to her, incase you |
| take is to lower the balance on the existing accounts | | | | were wondering. I got the 25 points I needed and much |
| by spreading the 2,700 with the new credit accounts | | | | more. |
| and the old accounts. What you want to do is keep all | | | | |