Amidst the US recession’s standstill, consumers and the finance industry remain to be on the lookout for ways to a better management of their resources. Kelly Grant, Sr. of SmartMoney.com gave away few advices to the public on how to raise credit scores now that the credit card industry is starting to regain its momentum from the economic fallback it had dealt with in the past years.
In a CBS interview, Grant said that an ideal score today is anything more than 750. Credit score below that is just going to be a blow or a blunder, she added. However, little changes from small-time transactions are not to be neglected as it can still raise one’s score. But to see major changes, cardholders are advised to devote at least one year of intelligent buying while maintaining good payment history. Getting loans from banks would also do well in raising one’s credit score. If done regularly, installment payment record would reflect as a good cardholder performance and could potentially raise one’s score. Grant emphasized that it is highly advisable to apply to credit unions and small banks since they are likely to be more aggressive than larger banks.
Finding a relative or a friend who has good credit record will also help in gaining more credit scores. Piggybacking or being a supplementary to other person’s credit card account will be an advantage especially if the principal owner maintains a good credit record. Grant further added that looking for someone who has a long-history of on-time payments but low balances is another way by which one can get high scores. In return, the principal owners’ account will not be put to risk even though there is an added supplementary since the purchasing control will still be on him.
An alternative way to improve credit score is to use store credit cards. Since cards like these allow one to buy in just a single shop, lenders are often enthusiastic to entertain borrowers even with their lower credit score. However, using store credit cards has its downsides. Since most stores possessing their own credit cards impose higher interest rates that come as close to 30%, creditors must ensure to fully settle the balance by the end of the month. Otherwise, unpaid balances will lead to interest accumulation that is bad for creating a good credit score record.
Lastly, Grant advised to get help from the Payment Reporting Builds Credit, an alternate credit bureau that lends service in the summation and verification of on-time payments at an affordable fee. Some lenders would be willing to examine a small-time but up-to-date rent and utility payments when considering lending risk. A regular monitoring on one’s account history is still the best way to determine the chances of acquiring higher credit score points.
