Improving Credit (2)

Part
01
of four
Part
01

Tactics to Improve Credit Ratings (2)

Avoiding opening new credit accounts, enlisting for a starter card, having a credit score objective, using alternative data, and improving credit utilization are tactics that can assist the average American to better build their credit ratings. The requested information about the tactics is presented in the attached spreadsheet and a summary presented below.

Summary

  • Having few and no newly opened accounts indicate financial stability, which can enhance one’s credit rating.
  • Setting a credit score objective with an aim of meeting it is a sure of improving one’s credit score.
  • A starter card is the perfect starting point for the average American new to credit.
  • The average American struggling with poor credit ratings can use alternative scores.
  • Using as little credit as possible and keeping ratios low can help the average American to raise their credit ratings.

Part
02
of four
Part
02

Tactics to Improve Credit Ratings (3)

Using different types of credit accounts, seeking a secured credit card, becoming an authorized user, limiting loan application to a short period, and creating a budget are tactics that can assist the average American to better build their credit ratings. The requested information about the tactics is presented in the attached spreadsheet and a summary presented below.

Summary

  • Having a mix of credit accounts and paying them off help demonstrate responsibility to lenders.
  • Using a secured credit card can help the average American to build their credit ratings.
  • Becoming an authorized user on another individual’s credit card account with a good standing can enhance one’s credit score.
  • When shopping for loans, the average American should target to limit their applications to a short time period to avoid creating multiple hard inquiries.
  • With a budget in place, the average American can closely monitor their spending relative to what they earn. They will be able to make smart choices when using their credit cards, leading to low credit utilization. The overall effect would be improved credit ratings.
Part
03
of four
Part
03

Tactics to Improve Credit Ratings (4)

Working with a nonprofit credit counseling organization, disputing credit report errors, obtaining a credit-builder loan, negotiating with lenders, and increasing credit limit are tactics that can assist the average American to better build their credit ratings. The requested information about the tactics is presented in the attached spreadsheet and a summary presented below.

Summary

  • The average American struggling with the various credit situations can improve their credit rating through the guidance of a professional credit counselor.
  • They should also obtain their credit reports and analyze them for errors or any unexpected negative remarks in order to file a dispute with the appropriate bureau.
  • People seeking to build their credit ratings from scratch or recovering from a massive negative credit rating can consider getting a credit-builder loan to boost their ratings.
  • Negotiating with lenders can help improve one's credit rating by avoiding negative remarks.
  • Increasing the credit limit can help decrease debt-to-credit ratio, with a favorable impact on credit ratings.

Part
04
of four
Part
04

Tactics to Improve Credit Ratings (5)

Requesting for a good faith adjustment, avoiding hard inquiries, adding rent payment to credit report or paying online, including utility and phone payments in credit reports, and reporting stolen or lost cards are tactics that can assist the average American to build their credit ratings. The requested information about the tactics is presented in the attached spreadsheet and a summary presented below.

Summary

  • People with a history of paying in time can always request for a good faith adjustment if they miss one or two payments because of unavoidable circumstances in order to improve their credit ratings.
  • Hard inquiries often lead to a decrease in credit score by an average of 5-10 points. To improve or maintain their credit ratings, the average American should avoid them when possible.
  • The average American can improve their credit ratings by including their regular rent payments in their credit reports.
  • People who pay their utility bills and cell phone payments on time can improve their credit ratings by including them in their report.
  • Reporting stolen or lost cards can help the average American to maintain their credit ratings by avoiding fraudsters. It also helps the creditors to close an old account and transfer all relevant data including payment history and opening date to a new account, thus improving the credit ratings.
Sources
Sources