Skip to main content

Quickly increase Your Credit Score

 Here is a simple tip to a Quick Credit Score increase.

Pay your credit cards before the statement date.  This may only add a few points but if your cards show a significant drop it will make a difference.  The amount you owe on the statement date is what the credit history shows and the percentages of available credit usage calculation.

Build your Credit Fast

Scrape together as much cash as possible and pay down your cards before the statement date.  Pay the most on your cards with the Highest Percentage usage.

Overall Available Credit Usage

The overall available credit usage is an important number.  However if one of your cards is near 100% of available credit used it will have an oversize impact on your score. 

Individual Credit Card  Available Credit Usage  

I used an interest free offer on one of my credit cards.  I borrowed 100% of the available credit on that one card.  My overall credit card usage was below 25%.  I had several cards with zero balance.  This one card with 100% usage dropped my score from 790 down to 730.  I was shocked.  

If you have one card with a very high balance compared to the credit limit of the card it will draw down your credit score.

Multiple Credit Card 100% Available Credit Usage

A friend of mine accepted zero percent offers on two of his cards.  He used the money he borrowed in his business.  He now had two credit cards with 100% of available credit used.  He does have an excellent credit history.  It dropped his credit score by over 100 points.  He went from just over 800 to just under 700.  He has no missed payments, and an awesome credit history.

Labels:

Comments

Post a Comment

Popular posts from this blog

My Introduction to Airline Miles

 I was first introduced to airline miles by a friend who had just gotten a United Airline Chase Credit Card .   I signed up and started getting airline miles for all of my business purchases.  Just for signing up I received 50,000 miles.  I believe I had to spend $3,000 in the first three months to get the 50,000 points.  This was a great bonus, two free flights anywhere in the US for spending $3,000 which I would have spent anyway.   The annual fee for this card is $95 which is waived for the first year. It took 25,000 airline miles to get one round trip ticket anywhere in the US.  Short flights would only cost 20,000 airline miles. I used just this Chase United card for a couple of years and earned a couple hundred thousand Airline Miles on the purchases my business made.   More Chase Points Cards I applied for and got more Chase credit cards for points.  I got the first Chase Freedom card with no annual fee.  This ca...
Post a Comment
Read more

How Home Loans Impact Your Credit Report

Home loans have a different impact on your credit score than credit cards. Since most home loans last for 30 years after a few years they are an excellent credit reference. That is if you make your payments on time. The monthly grind of making the Home Mortgage Payment isn't much different after a few years than paying rent.  The rent increases over the years while your Mortgage payment will stay the same except for tax and insurance increases.  For many households the increase in house prices creates the largest family asset. The Home Loan is often the longest loan to show up on your credit report.  It also shows lenders you can make payments over an extended period of time.   The size of your Home Mortgage payment when compared to your claimed income when you Apply for a loan may also have a significant impact.  
Post a Comment
Read more

Should I Carry a Balance On My Credit Card?

 No Many people think that it will help your credit if you carry a Balance on your Credit Card.  This is simply not true.   The only things that change if you carry a balance on your card is you will pay a high rate of interest and you will pay interest.   You do not need to pay interest on your cards to keep them active and for them to have a positive effect on your credit score.   Use each of your cards a few times a year and pay them off in full at the end of the month and they will stay open and eventually have a positive effect on your credit score.  
Post a Comment
Read more