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 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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