Increase Credit Scores History of Positive Payments to Your Credit Report

Quickly improve your credit score rating by append positive payment history

Most consumers are aware that the negative elements of their credit report can be handled by three major credit bureaus. Often, this process can result in a significant increase in credit quality by eliminating harmful elements that reduce rankings.

However, to achieve excellent credit worthiness, it is not enough just to delete negative entries. Why? Because a lack of a positive payment history is also a barrier to good credit ratings. You must provide proof of payment to increase your credit score.

In this article I will explain two simple techniques for quickly entering credit in your file.

COUNTRY TECHNOLOGY

All you need to add a year with a very good credit history is the love and trust of friends or family members who have good credit.

Credit cards are always ready when their best customers add additional cards to their family members. By adding your name to one or more accounts, they will actually trigger a new credit card on your behalf. "Catch" is that they enter the record, which recommends they're responsible on the off chance that you miss an installment.

Of course, you never want to risk credit from friends or family members. So, you only need to use your own address in the application for additional cards. In this way, the card will be sent to you by mail, and even though your name is there, the card will still be yours. You can even cut it if you want it.

The simple beauty of this approach is that a new card will appear on your credit report, usually indicating the opening date of the original card (not just the date of the additional card application) and the entire credit history. from this card! It's like adding a good credit year to your stroke file.

TECHNOLOGY FOR ECONOMIC POWER SUPPLY

"Credit Saving Technique" is the most ideal approach to add a positive installment history amazingly document. It also provides excellent credit information for most types of financial applications. This technique requires at least $ 500 to $ 1,000 in cash, but is stored in a savings account as collateral for a loan, and the total cost of doing so must be less than $ 50.

Here's the details of the borrower, so you can see how it works.

STEP 1 - Find a small bank that meets your needs

I recommend working with a small city bank and not a large chain. Small banks are more likely to have the type of account you need to open, and they tend 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 are looking for is called a "savings account," which is just a simple savings account. The type of loan you will take is a "paper savings loan". This is the simplest type of loan obtained because it is fully guaranteed by your own money. Most banks are willing to borrow only 85% of the amount for deposits, so there is always a reserve money on the bill.

Your destination bank is eligible for this method if it meets the following three requirements:

O. Banks must have products in savings accounts without monthly fees for $ 500 to $ 1,000 credit.

B. You must be able to borrow up to 85% of your 12-month loan. This is usually referred to as a paper savings loan.

C. CRITICAL: Banks MUST report activity on this account to the three main credit bureaus (Experian, TransUnion, and Equifax).

If a bank product does not meet these requirements, DO NOT use this bank. There are thousands of small banking institutions throughout the country, so finding the right one in that area should be easy for you.

STEP 2 - Create a savings account

Open your chosen bank and open a Market Savings account for $ 1,000 or less, whichever you need. Bring your home book and wait a week, because it shouldn't look like you opened a loan account.

STEP 3 - Get a loan of money saved

Return to the bank and ask the loan officer. Look, be nice, and explain that you want to borrow $ 850 (or 85% of the amount actually paid).

When you receive your balance, your savings account will be blocked. Every time you make a payment, withdraw the same amount as your payment, with interest of less than a few dollars. Don't forget to ask for a loan term of at least one year with at least a monthly payment. Don't get a simple annual balance without payment. This won't help you at all because you are trying to set a payment history.

You will not be denied this type of credit regardless of your previous credit history and in most cases not even audited. If you have bad credit, let the officer know about your loan before he gets credit. Tell the bank representative that you are trying to repay your loan and that a good credit score is very important to you.

STEP 4 - Make your payment

Assuming that your interest rate is 6%, your monthly loan payment of $ 850 will be $ 73.16. (Remember, this is a guaranteed loan, so the interest rate must be relatively low.) Because you "borrow" $ 850 in cash, you will use that money to save your loan payments. Make sure you have made a payment before the date. Always pay early to set a secure payment history.

STEP 5 - RETURN OF CREDIT

After six months you pay the loan early. At this time, you still have around $ 980 from the original deposit of $ 1,000, some of which are available in cash and others in the savings account. They pay a high interest rate of $ 20.31 (assuming an interest rate of 6% of secured loans). I'm sure you agree that $ 20 is a small price you have to pay to add a six-month credit to your credit report!

STEP 6 - Make sure credit notes appear on your credit report

When you have repaid the loan, you will receive a new copy of your credit report to determine whether the credit history is correct. Because you have chosen a bank that regularly reports to the three major credit bureaus, everything must be displayed correctly. But an error occurred. If the loan is not reported correctly, ask the bank to fix the leak directly, or ask the credit bureau in writing to add a credit note to your report.

The technique of borrowing money is a simplified version of a more sophisticated "Tribune technique". Basically, the concept is to use guaranteed loan results from one bank to open another account in the second bank and then repeat the process for the third bank. Mathematics is far more complex, but the principle is the same, with the added benefit that three simultaneous loans complete your credit report with a positive payment history. This approach requires little interest costs and is much more labor intensive, but can be greatly influenced by a positive credit history.

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