Monday, September 22, 2014

              How Do I Build And Maintain My Credit?

                Answers For Most Common Questions.

I don’t have any cards yet and always get rejected, how can I build up my credit?

Start by having someone add you as an additional user to their account. Be sure that the account has been open for a while, is used responsibly and not maxed out. Make sure that the credit card asks for the social of the authorized user. By doing this, you add that account to your credit files, and it helps build your credit.
After about 3 months you should get a nice boost from that. Start by applying for easier credit cards that don’t require a high credit …or a store card like from Gap, Kohl’s, Macy’s, Target, etc. These can be easier to get approved for.

How do I get and keep a good credit score?

                                  1.Pay your bills on time, every time. Always pay at least your minimum
                                       monthly payment. Don’t skip any payments.
Note: You don’t need to revolve on credit cards to get a good score. Paying off the balance each month helps get you the best score.
2. Don’t max [Don’t use more than a 1/3 of your credit line]
                                 3. Keep track of your spending
The 2 primary factors making up 65% of your score are your payment history and the amount of money you owe. So always make sure to protect those.

Isn't it bad for your score to open a card?

In the short-term your score may go down slightly, but in the longer-run your score will only go up. Because, when you get a new card, you get a new line of credit. 30% of your score is made up of amounts owed and credit utilization so the more credit you have, the better your score.
Once you use that pull and apply for a card be sure you actually get that card!  It can take several tries, but typically calling or writing (via SM or even snail mail) to reconsideration departments can turn a denial into an approval, especially if you are an existing customer.

Isn't it bad for your score to close a card?

The only negative outcome of closing a card is losing the credit line that can be avoided in several ways. Many banks allow you to move a line of credit onto a different card. Some banks may be more willing to approve you for another card contingent on moving part of line of credit from an older card onto a newer card. Or they may want to completely close out the older card and move the entire line onto the newer card.

I don’t make my own income, how can I get a credit card?

 Recently the CFPB ruled that as long as you live in the same household as someone who you can rely upon to provide from their income, you can include all of that household income when reporting your income on a credit application.
Income isn't listed on your credit report, it’s based on what you report.