Are you trying to build your credit history, and want to increase credit score? You might want to know a few ways to use the system to increase credit score rapidly, and not waiting for the usual slow process of building it up over years.
Before you start on this campaign, you should first know that it doesn't look good on your credit history to have a lot of credit applications and you need to avoid this if at all possible. However, if you make several applications within a week or two, they are looked on as one, and won't count against you in the same way - they are viewed simply as shopping for the best rate for one loan or credit requirement.
An easy way to establish creditworthiness is to use a cosigner. Choose a cosigner with a long history of good credit. Get permission from a cosigner for your access to their credit. Becoming an authorized user on an already established account with a good history can help boost your credit rating.
Older accounts can help boost credit your credit score, since long credit history is looked on well. If you plan on establishing credit, but not using it, you can benefit just from being on the account without making purchases. In some cases, you won't even need a card to build the credit. In this way, your friend won't have to worry since their billing statements will remain private, as they won't be sent to you as well as them. Making bad decisions with your friend's credit accounts can be detrimental to their credit as well as yours; remember that you can lose your friend too, if you mess up the credit.
Secured credit accounts can be a quick and easy way to establish a good score. One suggestion is to open three such accounts and borrow money from each. If you separate that money and use it to pay your secured cards, it will help establish a good credit score.
This is a good way to go, but it isn't free. You will have to put a cash deposit up to get the secured card; you will also incur interest and fees on the accounts. Be warned that at first, your credit score will lower for accessing your history. After only a few months, you will have established good credit by paying the cards "as agreed."
A note about how you use any of your revolving (credit card) accounts - you may not realize it, but if you pay off your accounts each month, you actually don't have as good a score as if you leave some debt in the revolving accounts. If you want to increase credit score, you will need to carry some debt, as this shows that you can manage your debts without getting into trouble. Just make sure that you don't carry more than a quarter of your available credit on any one account.
Late payments can severely affect your credit score, so make payments on time, every time. Don't leave payments to the last minute, if you can help it, to account for delays with the mail, or other unexpected issues. Diligently following these policies will enable you to establish excellent credit in a short span of time.
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