Minggu, 11 Juni 2017

How to Build Credit Score Fast ?

if we talk about credit score, the most common that most financial company use are FICO Socre! since fico put heavy weight on 5 factors! e.g Payment History, Amount Owed, Length of Credit History, Credit Mix, and New Credit! if you pay attention to those 5 factors, actually Credit length only 15% from over all score! it mean if you focus on other 4! such payment history, Amount Owed, Credit Mix, and new Credit! actually you can get 85% score! 

But I have to be honest, I never said, you can build Good credit score with in 1 month! :D because it's almost impossible to do that! at least if you choose 12 month billing cycles payment! FICO can give score after 12 month! but there's a chance, if you choose 6 month payment, and always pay on time, and also already have other credit such as auto loan, mortgages loan and etc(credit mix) and also you have decent debt utilization and not more than 80% lets say 50%, or if you can before 6 month, you already pay fully of your debt ! there's a chance  less in 6 month! you already have decent credit! 

But for most company most of them will prefer with 1 year credit history rather than less than 6 month or 1 year!  because credit  history in 1 year are not short time, so the idea is to filter some bad guys, that have bad intention to credit cards company so they can short out, these people! but for people that already pass 1 year, and have good credit most of the time you will get approval for any credit application that you apply! but of course you need to have good Credit history! 

So, if you want to build Credit History fast less than 6 month! here what you do!

First, purchase something! and choose 6 month billing cycles! use maximum limit of you credit card! then pay 50% of your total debt! with in first month! so now you have 5 month to pay full of your debt! if I were you, I will not pay minimum payment! because 80 % credit utilization are red flag! but it doesn't mean you can't use maximum credit line! it's just don't pay to long and make them nervous! :D lol! anyway, if can and possible, pay off your debt less than 6 month! and then, the next things is try to make variation such cash advances, or transfer balance! again use maximum your credit limit! or 80% at minimum! the idea is, not only to build credit score but also you want to increase your credit line!

If you use maximum credit and always pay on time! and credit utilization never exceed more than 80% before grace periods! there's a chance, that your credit line will increase very fast! for several cases, your credit card limit will increase automatically! even though if you give a call to them and ask to raise credit line! I don't think they have reason to say no!😁

just remember it's okay to spend maximum credit limit! but it's not okay to pay to long! because who don't want profit ? but who want lend money to people that always pay to long ? for sure nobody want that! so in short, max your credit cards, pay fast, and use variation! credit mix it also mean auto loans, mortgage loans and etc! as long you make late payment to other credit bills, the chances your credit score are on decent rates! because credit company realize, they also should aware, that other credit payment such auto loans and mortgages loans are in good records! afterall, most creditor are in same boat! 😂

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