Hi everyone. I just started a full-time job in February after graduating college in december. I have a good salary and now i'm looking at taking a loan to buy a car and possibly some real-estate. To make this go smoothly i'm trying to increase my credit score which is below average. I know that I can add points to my score by simply increasing my credit limit while not spending anymore on my two credit cards. However, when I recently requested an increase on one of the cards I was denied. I know that I had increased to the max limit when I was a student, but I assumed that they would allow a further increase now that I'm making money.
My question is what is the best strategy to get an increase? I have a good amount of money in savings that i'd like to use as down payment on a real-estate investment, but i'm wondering how much of that I need to feed to my cards in order to get an increase and get my FICO up.
2007-06-06 12:45:50 · 6 answers · asked by Curt F 1 in Business & Finance ➔ Credit
I'd like to minimize the amount of money I feed back to my cards - somehow I have a surpisingly good interest rate on them and i'm really interested in using my savings as down payment for other investments. The limit increase request I put in last week was a hefty one - would they maybe accept a lesser request? Also, would you suggest that I shop around for a different card? Thanks so much in advance for all your help.
2007-06-06 12:48:04 · update #1
Repairing the credit score is not that difficult provided you take these 5 simple steps into consideration.
1. Check your credit report regularly
This is a must to ensure that you know your current credit score, and what is ailing it. If there are any inconsistencies in your credit report get them corrected. Keeping bills of all the transactions you make can be very handy and helpful in correcting any errors in your credit report.
2. Get rid of those extra credit cards
The temptations to own a new credit card are so numerous in modern times that many of us end up with a purse-full of them without any real need. They stay there and cause a lot of problems in repayment. The confusion that comes with too many credit cards can easy lead to a missed payment and resulting penalties. Frequent defaults will reflect poorly on your credit score. So, keep only the necessary and discard the rest.
3. Repay on time
Every credit card transaction is a loan that has to be repaid on time with interest. Don't ever miss out on any repayment. If you are not able to make full payments, make half, or even the monthly minimum, but don't default. This will keep you in the good books of credit card company and help your credit score. If you are not able to pay anything to the credit card company, don't shy away from them, call them, explain your problem and work out things so that a negative report doesn't land up with the credit reporting agencies.
4. Keep your debt to balance ratio low
A low ratio means that you are repaying on time. This factor has carries a lot of weight while determining your credit score. A low debt to balance ratio goes in your favor while it hurts your credit report badly when this ratio is high. The high ratio says that you are not able to manage your finances well, borrow more than you can afford, and the repayment is not up to the mark-- in short a good candidate to accumulate a lot of credit card debt. Always, avoid giving this impression to the credit card companies. Read more from: http://www.credit-card-gallery.com/article/239,Credit_score_repair_in_5_simple_steps
2007-06-06 21:50:02 · answer #1 · answered by grierGRIER h 3 · 0⤊ 0⤋
It really makes no difference about your new job in terms of raising your score. However, your debt to income ratio (seen by the mortgage guy) will be down so that will be helpful. As for raising your score, make sure you are down to 20-30% of your max credit line on each card. That should give you a few extra points. Applying for a new card may lower or raise your score depending on your exact circumstances which only you and the credit bureau know. As an example, if you are given a high limit on a new credit card, this could raise your score based on the amount of credit available to you. And assuming that you are not near maxing out your other cards. But if you have a high number of inquiries, this can lower your score.
2007-06-06 12:56:25 · answer #2 · answered by FreakyGeeky 3 · 0⤊ 0⤋
You say your credit score is below average - it didn't get that way because you paid your bills faithfully. Sounds like now you have some making up to do. If you have hefty balances on the cards you have now, pay them down or preferably pay them off - then maybe they'll increase your limit.
2007-06-06 13:26:13 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
you have bills in collections and an extremely great volume of scholar loan debt. you're unlikely to get a credit improve via fact you're seen to be a volatile credit client. Get your collections bills thoroughly paid off and your scholar loan debt paid down as quickly as attainable. till you get those issues squared away, you have no longer any company procuring a house.
2016-11-07 19:08:36 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Pay off all old credit card debt then ask for an increase.
2007-06-06 12:50:37 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Hi.
I know a company that does instant cash loans :
http://www.cashdoctors.com.au/?a_id=cd0698
2007-06-06 13:28:12 · answer #6 · answered by Anonymous · 0⤊ 1⤋