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Credit Information
Tips on Managing My
Credit
by
Rob Polichetti
800-242-0919 ext. 102
rpolichetti@coastcities.net
Pay all credit cards as
close to zero as possible but do not close them. Closing a credit card
can only hurt you a majority of the time because you are effectively
increasing your debt ratio when you close those accounts. Remember, pay
off the credit cards but do not close them and your credit score will
increase significantly. If you can’t afford to pay the cards to zero
then pay all of them below 50%, it is better for your credit score to
have the balances spread evenly over all cards rather than have two
maxed out.
Do all rate shopping for
cars and mortgages within a 14 day period. All Auto and mortgage related
inquiries made in a 14-day period are treated as ONE inquiry for scoring
purposes. If you have credit pulled by a mortgage broker everyday for
two weeks it is only treated as one inquiry for scoring purposes.Have a Family Member add
you on their credit card account as an Authorized User and make sure
your Family member gives your social security number to their credit
card company. Only do this if they have a low balance and have had the
card for at least ten years with a positive payment history. This will
give you their payment history and low debt ratio as if the card was
yours. This can increase your score over twenty points! Call all of your credit
card companies and ask if you qualify for a credit line increase without
them having to pull your credit report. Many will increase your credit
limit based upon your payment history. This will decrease your debt
ratio and increase your credit score as a result.
Whenever you are settling
unpaid collections tell the collection agency that you will pay 100% of
the balance due if they agree to completely delete the account from your
credit bureau. If they say yes make sure you get it in writing on their
letterhead before sending them a check. This is a good idea because a
paid collection is not much better than an unpaid one. You want the
account completely deleted to maximize your credit score.
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