If there is one question I’m asked by consumers more than any other question about credit, it is “What is the quickest way to improve my credit score?” My answer is always the same, “how much do you want to raise it?”
If you wish to increase your score from 580 to 620 then your strategy will be very different from someone wanting to go from 670 to 725. Why? Because your starting point is different, it requires a different approach. While the removal of negative items from a report will almost always lead to an increase in score, it’s still a very basic concept at best and typically never leads to the increase score most are seeking.
Believe or not, improving your credit score could be as easy as adding new revolving credit. Of course there are several credit cards available to get you back in “financial trouble” or secured/credit accounts that don’t add any value to your credit score. The most effective tool to increase credit limits and decrease debt to credit ratios (two major factors of credit score) is the use of online merchandise cards or credit lines that report to at least one or more of the three major credit bureaus.
I recommend subprime merchandise cards. Unfortunately this is the most misunderstood card in the industry so most people shy away from use…which is a huge mistake if your goal is to increase your score specifically for the purpose of purchasing a home. The merchandise credit lines typically report high credit limits with low balances and the approval is guaranteed. Sound like a scam…if you say “yes” like everyone else you are missing the point and the opportunity to get out of credit prison. This technique is hard to beat based cost and effectiveness. If you add a secured credit card for the same cost, you do not get the bang for your buck because it will only increase available credit by $300. Which may be okay if your strategy is to raise your credit scores over the next six months versus the next 30 to 60 days, Basically a revolving credit line that reports to two of the three major bureaus, gives you a high credit limit, but it also gives you the security of a “secured card” by allowing only to finance a set amount (keeps you out of trouble) For more information on this secret weapon email me at markita@weststarmortgage.com or visit www.getnewcreditline.com to sign up.
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Markita Aldridge-Woods is a mortgage banker that is passionate about helping clients get out of credit prison. Visit website at www.queenofmortagages.com or call (703) 497-3936.
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