How to QuicklyBoost Your Credit Score
Want to Boost Your Credit Score to buy a house? Most people are unaware of a little known technique that could raise your credit score to qualify to by a house in a relatively short period of time. The standard approach is to remove negative items off your credit report. But that may take much longer than the following strategy.
Increasing your debt to credit ratio is key to improving your credit score. But the right kind of credit is required, such as having revolving credit. Your debt to credit ratio should be no more the 30%. For example, suppose you have a credit line of $5,000.00. Your should use no more than $1,500.00 (30%) of the line of credit to boost your credit score.
The unknown secret is that the lender’s credit scoring system is based you the consumer maintaining a small balance to generate interest income from you and paying your account on time over a period of time. This is how they make their money.
Many people have the misconception that paying your account in full every month will raise your credit score. Maintaining the correct debt to credit ratio will Boost Your Credit Score
much faster. But what if your debt to credit ratio is high, for example 70%?
Using subprime merchandise cards is a little known and misunderstood technique to raise your credit limit and decrease your debt to credit ratio. But many consumers have been burned by some fly-by-night merchandise companies. The key is to know where to locate find a legitimate subprime merchandise card company.
A subprime merchandise card is a credit card with a line of credit. You can only purchase items from there catalog or an online website. The consumer applies for the card without a credit check. For example ,the consumer puts down a small deposit, say $250.00 to buy $1,200.00 worth a items from merchandise card vendor’s catalog. The remaining balance of $950.00 is financed. The key here is for the consumer to make regular payments on time so that the merchandise card company can report is to at least one of the three main credit bureaus. See the point?
By obtaining a merchandise card you will increase your credit limit and this will improve your debt to credit income on your credit report. Second, your will carry a small balance, showing the lenders that you are credit worthy. (hopefully below 30% debt to credit ratio)
And lastly, by you making on-time payments, over time you will build your credit to the point of receiving pre-approval offers from lenders that obtain your name from the credit bureaus.
The key again is knowing which subprime merchandise vendors are legit and offer the best deals for consumers.
Desmond Primus has been in the financial services field for 19 years and strives to provide consumers with informative articles. If you would like more information, please go to: http://www.HomeBuyerLearning.com
