how can we up our credit score?

Asked by Raptyme, Mesquite, TX Sun Feb 14, 2010

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Hannah Fliegel’s answer
Hannah Flieg…, Agent, Larkspur, CA
Sun Feb 14, 2010
Hi R,

A while back I wrote a blog about credit score boosting strategies vs. credit repair. I think this article will answer all your questions and more!

The Credit Restoration Expert will reveal how your client's can get a 40-60 credit score boost in 45 days. First off, there is credit repair and there is boosting a credit score. If your client has a poor credit rating because of mulitple late pays and other "negative" items on their credit reports this is appropriate for credit repair and they should visit
http://www.thecreditrestorationexpert.com

For other clients who may have a drag on their credit score here is a technique to boost their score. Check the limit on their credit cards to see if they are carrying too much balance. For example if the credit limit is $9k, then the client would not want to carry more than $3k long term, even for a couple months because it will drag their score down. Two options, option number one is pay down the balance to approximately 30% of the credit limit allowance. Option two, call the credit card company and see if the client can get a higher credit limit. Either of these strategies would provide a boost to the credit score.

Is it better to have 10 credit cards with small balances or 3 credit cards maxed out but paid on time?
Good question, I am so glad that you asked. In a perfect credit world a client would have all three types of credit, secured such as a mortgage, unsecured such as credit cards and installment such as a car loan.
If the choice was to have three credit cards maxed out vs. ten credit cards with small balances from a credit stand point then the 10 credit cards so long as they are not carried with a balance of 30%.
If a client starts to close down some of these cards there will be changes to their credit score and not always good changes. Therefore, if your client just needs a boost! Educate them to pay down their credit cards to 30% of their limit, and until they purchase a new home don't finance any new purchases such as a new car. I always tell people, wait until you have a new home so that you can park your new car in the driveway after you close escrow of course!
Web Reference:  http://www.HowDoYouScore.com
0 votes
Scott Godzyk, Agent, Manchester, NH
Sun Feb 14, 2010
In a short answer, pay your bills on time and keep your balances to below half of what your credit limit is. You should go on the equifax website as they have a faq section with these scenarios and tips about your credit score. i hope this helps.
Web Reference:  http://www.ScottSellsNH.com
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, ,
Sun Feb 14, 2010
Here is a blog that provides you with a few basic, do-it-yourself tips to repair your credit.

http://www.trulia.com/blog/al_akerman/2010/01/can_i_get_a_mo…

Hope this helps.

Good luck.
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