Increasing Credit Worthiness
If you have none to little credit history, there are steps you can take to start building that credit history and in turn, improve your personal credit worthiness. Until you have a history of favorable transactions in your credit file, lenders do not know whether you are a good credit risk or not. Here are some unique steps you can try to increase your credit worthiness:
· Try applying for multiple credit cards within 1 year. Although they say that any inquiry into your credit file as a result of a credit card application automatically lowers your score, there is a hidden secret behind this. An inquiry for 1 credit card application has the same effect as 10 inquiries from 10 different applications if they hit the credit bureaus within 1 calendar year.
· Try to buy as much as you can using your credit card. The more often you buy and make timely payments on your credit card, the faster your score will go up.
· Try to borrow as much as you can from willing lenders. Especially, try to take advantage of 0% APR’s and no balance transfer fees. The only thing you have to remember is, don’t borrow to spend. Keep the money in your savings account and make at least the minimum payments, without ever being late. Once the promotional period is about to end, repay the loan in full. This will do wonders for increasing your credit worthiness. When lenders pull your credit report, they will see a good history of payment making and will gladly do business with you.
· Call your credit companies, and ask them to raise your credit line. If your account remains in good standing with a credit card company, they will give hidden increments to your credit line every 6 months. However, you will not see the increases unless you APPLY for them. Try to get your credit lines increased as much as possible, without using up a majority of the credit.
Read other articles like this on Creditreportblog.com to help you become a more savvy credit consumer.
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