6 Tips To Quickly Boost Your Credit Score By Adding Positive Credit History To Your Credit Report
Most consumers are aware that negative entries in their credit reports can be disputed with three major credit reporting bureaus. Often times, this process can significantly improve credit scores by removing harmful items that lower scores
However, in order to get excellent credit, simply removing negative mentions is not enough. Why .? Because a lack of positive payment history is also a barrier to good credit. To increase your credit score, you must show a record of payments on time.
In this article, I'll describe two simple techniques for adding good credit listings to your file quickly
CO-SIGNER technology
To add an excellent credit history from all years, it is necessary to have the love and trust of a friend or family member with good credit.
Credit card companies are always ready to add additional cards to family members for their best customers. By adding your name to one or more of their accounts, they are actually issuing a new credit card in your name. The "hold" is that they will be co-signers on the account, which means they are responsible if you miss the payment.
Of course, you never want to risk a friend or family member's credit, so all they have to do is use their own address when applying for additional cards. This way, the card will be emailed to them, and even if you have a name on it, the card will remain in their possession. They can also cut it if they want.
The simple beauty of this approach is that the new card will appear on your credit report and will typically display the original card's start date (not just the application date for the additional card), as well as the entire credit history. From that card! It gets good credit in your file for many years with a stroke of the pen.
Savings Loan Technology Passbook
“Passbook Savings Credit Technology” is a great way to add a positive payment history to your credit file. It also gives you an excellent credit reference for most types of financial applications. This technology requires some money - at least $ 500 to $ 1,000. although this amount will be held in the savings account as collateral for loans, and the total out-of-pocket cost to complete this technology must be less than $ 50.
Here the passbook savings loan technique is given in detail so you can see exactly how everything works.
Step 1 - Find a small sofa that meets your needs
I suggest you work with small community banks and not large chains. Small banks are more likely to have the exact type of accounts you need to open, and they are more likely to work with you and are flexible. Savings and credit institutions and credit unions can also be used, provided they meet the requirements. The product you want, this is called a "passbook savings account" which is really just a simple savings account. And the type of loan you are taking is a "passbook savings loan." This is the easiest type of loan as it is fully secured with your own money. Most banks deposit by you alone, but 85% are ready to borrow, so there is always some reserve in the account.
Your target bank is suitable for this method if it meets the following three requirements:
A. The bank must have a savings account product with no monthly fee of $ 500 to $ 1,000.
B. You should be able to borrow up to 85% of your balance on a 12 month loan schedule. This is commonly referred to as a savings account
C. Criticism: The bank must report the activities on this account to three major credit bureaus (Experion, Transunion and Equifax).
Do not use that bank if the bank product does not meet these requirements. There are thousands of small banking institutions across the country so you should find a suitable location in your area quite easily.
Step 2 - Open a savings account
Go to the bank you choose and open a savings account for $ 1,000 or less - depending on what work you need to do. Bring your passbook to your house and wait a week or so because you don't want to see that you just opened an account for taking out a loan.
Step 3 - Get a passbook savings account
Return to the bank and ask for a loan officer. Look your best, be polite and explain that you want to take a savings account for $ 850 (or 85% of the amount you actually deposit)
When you take out your loan, your savings account freezes. however, every time you pay, you withdraw an amount equal to your payment, a few dollars less for interest. Make sure to request that the loan term is at least one year with a minimum monthly payment. Don't take a simple one-year loan without payment. You are not benefiting at all as you are trying to establish a payment history.
You will not be left for this type of loan, even if your previous credit history is, and in most cases, unverified. If you have bad credit, be sure to tell your loan officer that he is pulling your credit history. Tell the bank representative that you are trying to restore your credit and good credit is very important to you.
Step 4 - Pay
Assuming an interest charge of 6%, your monthly payment for a $ 850 loan will be $ 73.16. (Remember, this is a secured loan, therefore the interest should be quite low.) Since you have "borrowed" $ 850 in cash, you will therefore use that money to keep the payment on the loan. Make sure to pay well in advance of the due dates. Always pay to be on the safe side when setting up a good payment history.
Step 5 - Pay the loan early
Pay off the loan early after six months. At this point, you have about $ 980 left of the original $ 1,000 down payment, some of it in the form of cash, and some of the savings will remain in the account. You must have paid $ 20.31 in interest (assuming the secured loan rate was 6%). I'm sure you'll agree that $ 20 is a small price to add a good six-month payment history to your credit report!
Step 6 - Make sure the loan is on your credit report
After you pay the loan, you will get new copies of your credit report to verify that your loan report history is correct. Since you have selected a bank that reports regularly to the big three credit bureaus, everything must be correct. But mistakes do happen. If the loan is not reported correctly, ask the bank directly to identify the defaults or ask the credit bureau in writing to add a credit reference to your report.
Passbook savings credit technology is a simpler version of the more complex “three bank technology”. basically the concept is to use secured loan income from one bank to open another account with another bank, and then there is the third bank repeating the process. Math is much more complex, but the principle is the same, three credits along with your benefit to associate a positive payment history with the loan. This approach costs a little more interest, and requires a lot of work, but can actually boost your positive credit history.
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