Back to Top
Payday loans in Louisiana Explained.
Everything you should know about same day cash advance loans in LA. (Legislation, APR rates, term and fees)

Credit score repair

First and the foremost, mentioned above are the basic 11 rules to keep your credit score at a healthy level.

 

  1. Don’t open a lot of new accounts at once
  2. Do not close old accounts impulsively
  3. Don’t do a lot of requests to get the loan
  4. Make repayments on the current loans on time
  5. Make payments for utilities on time
  6. Keep your debts at the lowest possible level
  7. Do your best to increase your loan limits
  8. The longer you accumulate your credit score, the higher it is.
  9. Avoid going into bankruptcy (it’s a powerful blow to the Credit Score)
  10. Avoid financial vouch for other people

 

Today we’ll be focusing on the most vital parts of many of these commandments and get started with aspects that impact your score.

 

The number of accounts you have influences your credit score. Bank accounts, credit cards, the amount of loans and mortgages, consumer cards and even club cards matter, even if it is a card issued by a small business you are using once in a blue moon.

The duration of your credit history – i.e., length of accounts ownership. This is where 2 values are frequently: the maximum (the oldest account) and the average (the length of your account ownership.

 

The number of hard credit requests also affects your credit history. What’s the optimal amount you should be aiming for? Generally, the more the better. That is, for example, having 20+ open accounts is awesome. This demonstrates your ability to manage finances and work with bank instruments. Therefore, growing your accounts number is a reasonable direction. If you are just starting to build your credit history, open a bank account, get a loan for your vehicle and get a consumer card at a Walmart-type chain. That should be more than just enough for the first year. Then, as you grow your Credit Score, you will start getting access to better and better financial services. But it is necessary to acquire them gradually. And here’s why.

repair bad credit score

 

Number of Hard Credit Requests
When you open a new bank account, consumer cards in a supermarket or a membership card in the car repair shop credit request to check your Credit Score is made. Basically there are two types of credit score requests: hard pull and soft pull. The party that initiates the pull, hard and soft types differ in the amount of information, and in this case soft pull provides just basic info. Hard pull reveals all your credit history completely. For you, this is a big difference: since all hard pulls are recorded in your credit history and negatively affect your Credit Score.

 

Thus, if you open 10 bank accounts and have 10 consumer cards in different supermarkets such as Target or Macy’s – your credit history will contain the record ’10 Hard Credit Requests’, which is kept for the periods of 2 years. Creating all these cards is so easy and one may think that ‘it’s just a membership card’. But you can’t rid of them all – termination period equals 2 years.

 

Increase your loan limit to the maximum amount
There are two ways to increase the overall credit limit:

 

The increase in credit limits on the accounts you run already is a constant process  extending over a lifetime. People even refer to increase in credit score as ‘gardening’, which includes ‘nurturing’ small accounts, periodic ‘ridging’ and ‘fertilizing’, and patient waiting until they grow into larger ones.

 

Nowadays banks tend to periodically evaluate your activities themselves and your credit limit on the card can automatically grow. But there are certain ways to speed up the process: once every 6 months you can ask banks to increase your credit limit. This process is called Credit Limit Increase (CLI), and it can be requested on the website of the bank, or a simple phone call.

 

Try not to ask a lot at once (if your card implies a $500 limit and you’re asking for $15,000), play intelligently. For example, for the first time you can ask for $1,500, increase, then $2,500, and then higher and higher. If any bank increases the credit limit you may use this information for your advantage, when communicating with the competitor bank where you already have an account. That works as an argument from time to time.

 

Cultivating the Credit Limit is a gradual process, but out of it very much – a couple of years you will have a leverage at $20,000 – 40,000, and monthly use of credit cards, for example, at $2,000 – $4,000, which are quite decent numbers.