Become An Authorized User.
With the FICO score formula being recalculated last month, becoming an authorized user on a parent or spouse’s credit card will once again help raise your credit score. In the beginning of this year FICO changed the way that they calculate credit scores. After the change, being an authorized user on a credit card account no longer benefited you. The purpose of the change was to help stop companies that allowed you to pay to become an authorized user on someone else’s account to build your credit history. Many people felt that this was a dishonest way of adding positive trade lines to a credit report. Fico changed back the formula simply because the new equation was unfair to people who legitimately deserved to benefit from being an authorized user on a parent or spouses card. However, they say that the new formula will not help people who pay a stranger to be added.
Get a Reloadable Credit Card With A Credit Reporting Service.
If your credit is bad enough to the extent that you can no longer be approved for a credit card, it may be beneficial to look into a prepaid card. Most of them offer most of the benefits of a traditional credit card without the risk of getting yourself into some serious debt. Reloadable cards that offer a service to help build your credit, you pay a monthly fee (usually about $10) and they report to the credit bureaus about your on time payments. This puts an illusion of good credit on your reports because it shows that you are paying a credit card off in full and on time each month, but in reality you’re only paying a very small fee for this convenience.
Ask Your Current Creditors To Report Your Payment History To All Three Credit Bureaus.
Investigate every account that you have in good standing. Find out if the creditor is reporting that account to credit bureaus. If they aren’t, ask them in good faith to start reporting these accounts on your credit report. This will almost certainly boost your credit score if they are accounts that have always been in good standing. If they refuse to it might be a good idea to look into other companies that do report to credit bureaus. It will not benefit your credit score if you have a good account that’s not showing on your credit report. Usually a well placed threat that you are willing to open an account with a competitor will get them to comply.
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