What Are The Quickest Ways To Raise My FICO Score To Its Maximum Level ASAP?
I currently have no credit cards (or other credit worthy liens such as mortgage/vehicle) however I'm awaiting approval for a 'secured' Visa ..
Assuming I get the Visa (which will have a limit of a mere $300) I know I should just buy something small every month, then pay it off before the bill is due. How many months of this routine does it normally take to push my credit score up?
Also, how many months would it take for me to be able to qualify for a non-secured credit card from another bank? 3 months, 6 months?
Are gas cards easier to qualify for?
What about department store cards like JC Penny, Sears, Best Buy ..
I have a goal of raising my three scores up near the 700 range within 6 months. Currently they're 532, 581, and 583 (dont laugh!!) what is realistic?
I'd say a goal of 620 - 650 score is a little more realistic.
You're probably gonna need AT LEAST 6 months to get an unsecured card.
A lot depends on WHY your scores are where they are at now, in order to determine how quickly it can be raised.
6 months for what kind of unsecured card- Visa/Discover/etc.? What else could I do in the meantime? Do you know any other types of secured credit that are available (aside from the basic credit card)?
why do you want to raise your score ASAP? I mean obviously everyeone wants their score to be higher or raised, but what is your situation?
[addsig]
My apartment lease is coming due and I would prefer to move into an investment property such as a fourplex instead staying here and throwing more money away on rent. I think I have the best chance with a fourplex because the rental income is also considered 'my' income when I apply for a mortgage, and I dont make enough money to live in a single family house on my own ..
If you have your credit scores, I assume you have also got your reports. Check what negative items you have on your Equifax, Experian and Trans Union reports. Contest any items that are incorrect. I have a bad memory so I contested them all. They were all removed from my report within a few months. Be advised, however, that if you contest something that is valid and the company who placed that negative item on your report replies to the credit reporting company, the item may not be removed.
In short, your score is not all that matters. Any institution offering you credit will also check your negative items. Make all the corrections you can.
There are some "tricks" out there that really do work. Getting the secured card will help immensely. For the same price of a secured card there are some of these companies that give you a 5-10 grand limit for products they offer. Usually the prices of there products are twice what you would normally pay so dont buy them, just get the credit so it will be filed on your report. There are also cards, almost guaranteed you get, Target, Pier One, etc etc . Any of the cheaper department stores, or boutique stores will give you one.
Also if you are buying jewelry, stop in to Reeds or any one of the major chains, and tell them you want to be approved for there card for the amount you are going to spend, and you will just pay off the card before you get it in the mail.
This works for automobiles as well, same methodology.
If you own your home then get an equity line of credit, dont use it, just get it.
Forget about Sears, JC Penney, etc you wont get it with that credit score. Also dont go application happy either too many queries lowers your score.
While your goal is admirable, it may also be unchievable. If you are diligent, you can do 100 points, but anymore than that will take some help from a specialist in that field.
Hope that helps,
Kyle
Check www.creditinfocenter.com, www.creditboards.com, www.creditnet.com and www.artofcredit.com for specifics, and access to the experts. In general, you're going to do some disputing and some credit building. Perhaps you won't get to where you want to be within the time frame, but you can do a lot. There are resources out there like "Whopullledmycredit" (which is a Yahoo! Group) that help you figure out what cards you'll qualify for and which CRA they'll pull in your state.
Kyle, may I ask what is the name of the company you're referring to regarding the '5-10 grand limit for products' ?
I wasn't aware that Target has less stringent standards of credit for their cards- I will have to go out and apply for one right away ... thanks for the tip!
About the secured Visa, am I right about paying off purchased items before their due at the end of the month? Do I wait for the bill to arrive or should I send in payment before? How does that work? Is it good to let it ride over a month then pay off in the second month so that it 'dings' my credit positively? (hope that makes sense..)[ Edited by telebroker on Date 04/09/2004 ]
Quote:
On 2004-04-09 04:19, telebroker wrote:
Kyle, may I ask what is the name of the company you're referring to regarding the '5-10 grand limit for products' ?
I wasn't aware that Target has less stringent standards of credit for their cards- I will have to go out and apply for one right away ... thanks for the tip!
About the secured Visa, am I right about paying off purchased items before their due at the end of the month? Do I wait for the bill to arrive or should I send in payment before? How does that work? Is it good to let it ride over a month then pay off in the second month so that it 'dings' my credit positively? (hope that makes sense..)
<font size=-1>[ Edited by telebroker on Date 04/09/2004 ]</font>
Not to be discouraging, but I would defenitely say that getting a fourplex in your situation with financing will be very very hard.
I recently refi'ed 2 fourplex's for my uncle's partner, and it was next to impossible. Banks HATE to deal with them. The partner had mid-700 scores, $800,000 net worth, with approximately $400,000 in liquid reserves, and they STILL gave me a hard time. Unbelievable. Not to mention appraisals on these are a complete pain in the arse. Getting comps was near impossible.
If I were in your situation, I would find a partner (like my uncle did) who has awesome credit and assets. Tell them you want to start out with a single family residence to rent out, with yourself being the tenant. You can split the profits 50/50, and your partner gets a 100% vacancy guarantee. I would set up an LLC to do this.
This is what my uncle did, and now they have 8 properties. He currently rents one side of one of his duplex's from his and his partner's LLC, and they split the profits. Worked great for them. And btw, my uncle had total crap credit and negative assets when he started all of this.
About the credit thing, pay off the card within the grace period. This way you pay no finance charges. You don't have to pay the whole balance off each month though, that is why it is a credit card and not a charge card (i.e. American Express)
With secured cards, just be careful they dont charge you stupid "Account activation" and other setup junk fees. They are a waste of your money, and are unnecessary.
I'd go for the Target card...but keep in mind it is probably a CHARGE card, which you WILL have to pay off every month.
Hope this helps.
any place you rent or bill you pay, electric water etc, call them up and ask them to report it to the credit bureaus.
dont pay for a credit card...that is just silly.
go to your bank and open up a CD and get a line of credit secured against this.
apply for dept store cards, victorias secret even, gas cards are easy to get.
your credit should report in 6 months or so as pretty good.
just remember to pay all bills in full.
my two cents.
there are mortgage companies out there that will approve you with sub 600 scores.. even 500 scores. I haven't used them myself, but I have called to inquire an d a couple of them seemed legit. The rate will be VERY high, but you can get an approval.
Lenders are out there just look hard. I would not take credit advise from most people on this site. I run a credit hotline for a large auto dealership and I have been involved in thousands of these transactions over the last ten years. The biggest factor in scoring is revolving credit lines (credit cards). If you get a card use it and show you can manage it. Keep your balance low and your score should climb.
you know you also are going to need at least 2 or 3 trade lines in order to purchase any thing but also you have to have a good rental history all of these things play a factor including reserves .
The number one things I have found that will raise your FICO score are as follows:
-Do not let your credit card balances go over 50% of your credit limit. For example if your limit is 10K, your FICO score will lower if your balance is above
5k.
-Dispute all negative items with 3 credit bureaus. "I was never 30 days late"
"This is not my account" etc.....
-Limit inquiries.
-Keep a P.O. Box as a permanent address if you move around a lot. They
will allow this. Some rural area only use P.O. box due to no postal carrier access.
-Pay bills on time.
Best Riches,
Jeffrey Adam
[addsig]