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Looking for Tips to Raise Credit Score Fast


win2011
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Hello,

I'm in the process of cleaning up my credit and it is going well but I will soon need to begin the next phase which is to build credit. I'm already aware of a few ways to build credit fast but can anyone offer further ways to be credit fast?

 

I know about...

Being an authorized user

Secured loans

Secured credit cards

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Well...I think the reason nobody jumped on this is there is really no magic and you already listed the common ploys...

 

The problem is...being an AU doesn't really help...the sucker score wants your payment history, not somebody else's.  Secured CC's means you're paying somebody else to hang on to you money...put that money in a savings account and let them pay you.  Same thing goes for .secured loans.

 

My advice?  Open a checking account at a credit union...get your pay automatically deposited...open a savings account there...wait 6 months...apply for a CC there.  (This will even work at many large banks).

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Well...I think the reason nobody jumped on this is there is really no magic and you already listed the common ploys...

 

The problem is...being an AU doesn't really help...the sucker score wants your payment history, not somebody else's.  Secured CC's means you're paying somebody else to hang on to you money...put that money in a savings account and let them pay you.  Same thing goes for .secured loans.

 

My advice?  Open a checking account at a credit union...get your pay automatically deposited...open a savings account there...wait 6 months...apply for a CC there.  (This will even work at many large banks).

Thank you for the advice.

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There is no "fast" way to build credit.  Even if you applied for an unsecured card your score will take an initial dip due to the inquiry and new credit line lowering average age of accounts.  Then you have to spend time building a good payment history and managing the account(s) over time.  At least 6 months.  Creditors want to see a LONG good payment and credit history not a flash of brilliance.  

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See i wondered about that too, but my friend had a 617 fico score disputed and deleted all bad items So he said, but His Mom and Dad added him to there credit cards as Au's and it jumped his Fico score to 730 just by being added on. The whole point on that though is when was the Au's account opened. The longer when that credit card was opened the better score you will get and what people tell you about it doent work yes it does. But credit cards company are sometimes dicarding the Au's as to why your score is so high. BUT once agin thats why it is best to have a least 5 of them that has a credit history of being opened for 10+ yrs (you only need one Of those but more helps) and that will take you where you want to be, remember the majority of the time you dont get approved by a real person its a computer it looks at payment history and how estabished your profile is.

not including you have NO- late payments (dipute if there are any), you balance is under 30% of your limit. So say you have $3,000.00 limit then you devied that numer by 3 and you will get your actual credit limit of = $1,000.00

 

you go over that and that will hurt your score BUT please if you can check out the payment history and balance before your added as a A.U. because your going to take up there credit card history you can ask a close freind ,brother or sister and maby a stranger as long as the history looks good

Oh yeah here is something to think about: If you have a glass of dirty water would you add clean water to make it better? NO right, then why would you want to add anything good to your report when it is still drity ? its not going to help. Just clean up it up first getting rid of the bad stuff then add some postive things and also you wont be stuck with a high intrest rate for not so good credit

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I say again...the AU ploy DOES NOT INCREASE an  actual FICO score.  The "score" your friend saw jump was probably FAKO...one of the CRAs guess as to what FICO would calculate...nobody who's going to lend you money looks at FAKOs.

 

And, the FICO score that us consumers are allowed to see is closest to the FICO Bank Card score (the "sucker score") which predict who CCs are likely to make money off of.  I assure you, the CC companies are NOT interested in someone else's payment history.

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Oh yeah, another thing...the "utilization" rule (i.e., keep your CC at or below 30% of available credit) is another case of "common knowlege" not being entirely accurate.  A consumer has many different FICO Scores.  Its the FICO Bank Card score, again, that is most influenced by utilization.   The CC companies want suckers that carry balances and therefore pay them interest.  In fact, some CCs, like Crap 1, prefer utilization much higher than that...because they make the most money on people who go overlimit every once in a while.  This is why Crap 1 is delighted th give someone with a FICO score around 600 mulitple $300 limit cards.

 

The FICO Mortgage Score prefers debtors with only 1 or 2 CC...and $0 balance.  The FICO New Car score doesn't care.

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Oh yeah, another thing...the "utilization" rule (i.e., keep your CC at or below 30% of available credit) is another case of "common knowlege" not being entirely accurate.  A consumer has many different FICO Scores.  Its the FICO Bank Card score, again, that is most influenced by utilization.   The CC companies want suckers that carry balances and therefore pay them interest.  In fact, some CCs, like Crap 1, prefer utilization much higher than that...because they make the most money on people who go overlimit every once in a while.  This is why Crap 1 is delighted th give someone with a FICO score around 600 mulitple $300 limit cards.

 

The FICO Mortgage Score prefers debtors with only 1 or 2 CC...and $0 balance.  The FICO New Car score doesn't care.

I didn't know there were three different FICO scores. Thank you for all of that valuable information. It's greatly appreciated.

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There are actually many more FICO scoring algoritms.  First, FICO builds a separate set of scores based on each credit reporting agency...there are 3 common CRAs (TU, EX, and EQ) and then there are several others...Lexus/Nexus for example.

 

FICO has Bank Card Scores, Mortgage Scores, New Car, Insurance, Employment, Medical...and many others...I once counted 17 different models.

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There are actually many more FICO scoring algoritms.  First, FICO builds a separate set of scores based on each credit reporting agency...there are 3 common CRAs (TU, EX, and EQ) and then there are several others...Lexus/Nexus for example.

 

FICO has Bank Card Scores, Mortgage Scores, New Car, Insurance, Employment, Medical...and many others...I once counted 17 different models.

Wow you are a wealth of information! So the score we purchase is the Bank Card score... How many points different is it from the new car score or the mortgage score?

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Actually, what we buy is the FICO Consumer Score...its supposedly identical to the FICO Banc Card, but there are some minor variations.  As to how close it is to the others...there really is no way to tell.  The new car score puts more emphasis on past negatives regarding car loans (doesn't mean a lower score won't get you a loan...just you may pay more for it).  The mortgage score does look at past mortgage loans, but is concerned with what else may be on your reports that might get you sued.

 

The basic thing to remember is that its never as simple as whether the actual number is high or low.  The credit industry would like us to beleive that a high score reflects "responsible use of credit" when in fact, the money lenders are more interested in who they will make money on.

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Actually, what we buy is the FICO Consumer Score...its supposedly identical to the FICO Banc Card, but there are some minor variations.  As to how close it is to the others...there really is no way to tell.  The new car score puts more emphasis on past negatives regarding car loans (doesn't mean a lower score won't get you a loan...just you may pay more for it).  The mortgage score does look at past mortgage loans, but is concerned with what else may be on your reports that might get you sued.

 

The basic thing to remember is that its never as simple as whether the actual number is high or low.  The credit industry would like us to beleive that a high score reflects "responsible use of credit" when in fact, the money lenders are more interested in who they will make money on.

All of this is very interesting. Thank you for providing a better understanding of how different lenders view credit.

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  • 2 weeks later...
  1. Check your credit report for inaccuracies
  2. Pay your bills on time
  3. Don't close accounts unnecessarily
  4. Keep your credit utilization ratio under 10%

 

There is no magic bullet. I'd grab a couple of secured cards with no annual fees and then if you don't have any installment accounts you can look at getting a car loan in the future. 

 

Not really worth worrying about too much, there is no quick fix. 

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  • 3 months later...

@MindBend  ...lenders don't get to choose the scoring algorithm...FICO does that.  And FICO now looks at WHO is the primary account holder and WHAT their relationship is to you.  

 

On the other hand, FAKOs are not so picky.  After all FAKOs are intended to sucker you into using more credit (i.e., incurring debt) so being an AU may increase FAKO scores.

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So, trying to understand: only some users get benefit of AUTH for true FICO (from what I've gathered it's Spouse and children who actually gain it).

Wouldn't that be EXTREMELY difficult for CRA and FICO to ascertain with names being different even within households? Address would be the only other way I suppose, but then what about college kids, etc?

 

Do all credit card companies and lenders use FICO or some use FAKOs? I haven't pulled my true FICO in years, but would be curious as to how they compare. Usually higher? Lower?

 

Fortunately I have little debt and no specific credit needs, but am just "playing with numbers."

 

Thanks.

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Since the FICO algorithms are trade secrets, its unclear how they know...but...my guess would be name, address, and other common attributes.  For example, if you live in PA and you're an adult and you're an AU on someone's account in TX, I would expect it to be ignored.

 

Theoretically, CC companies use the FICO Bank Card score, which predicts who they will make money on...which is not the same as who has "good" credit.  I'm not aware of any that use FAKOs.

 

As for relationship between FICO and FAKO...none whatsoever. 

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  • 1 month later...

Yes, the banks, credit card companies, and mortgage brokers caught on to the game.

That's not entirely true. Plenty of married couples structure their cards as AUs, often without particular regard for their credit profiles. There's a specialty scoring model biased for just about any type of lending and surely one exists that specifically excludes AU from consideration as much as possible but I've yet to encounter one that used it:

In fact, after having just made a series of real estate and automotive purchases which my spouse and I financed ONLY for the sake of ongoing credit management, I can state with certainty that our scores were both above 800 and within a point or two of each other.

Something doesn't jive between the sweeping generalization and real world implementation.

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That's not entirely true. Plenty of married couples structure their cards as AUs, often without particular regard for their credit profiles. There's a specialty scoring model biased for just about any type of lending and surely one exists that specifically excludes AU from consideration as much as possible but I've yet to encounter one that used it:

In fact, after having just made a series of real estate and automotive purchases which my spouse and I financed ONLY for the sake of ongoing credit management, I can state with certainty that our scores were both above 800 and within a point or two of each other.

Something doesn't jive between the sweeping generalization and real world implementation.

 

That is because when it involves married couples there is a legitimate reason to have a spouse as an authorized user.  The household income is paying the debt and the home as a whole benefits from the use of the card.  Therefore the credit should be attributed to both even if only one opened the credit line.

 

The type of AU this thread is referring to that no longer works in that way is when a friend, sibling, grandparent, parent or someone else with good credit places someone on there account as an AU.  It has NO affect on credit anymore in most scenarios.  Once in a while one slips through the cracks but for the most part creditors have caught on to that game of adding an AU account to create a false impression of credit worthiness.  

 

Of course you and your spouse did this with new accounts recently:  you have a vested interest in both maintaining the accounts and credit score.  Not to mention some states are community property states where both spouses are liable for the debt therefore the AU account would count towards credit score.  

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I added my DD as AU on both my Target Visa and my NFCU CC.  As a result, she had a score in the 700's (her only 'other' credit was student loans in deferral), got a motorcycle loan from Navy and her own Navy CC.  (The CC had an $8K limit!).  When she and hubby (who got his own NFCU accts when he graduated basic (has a BA degree in Business)) applied for a vehicle loan, these young 20 somethings flabbergasted the loan officer....he said that he had never seen scores that high in someone so young!

 

They have kept balances low or PIF each month.  Son-in-law's NFCU CC is now $22K!

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