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Find Out What You Need To Know About Your Credit Score

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Chin-Ho

Have you ever asked yourself one question about your credit--- "How to erase bad credit and raise my credit score quickly?"

If your answer is YES. Well the next question you should think about is ""How much do you want to raise it?"

Raising credit score from 500 to 570 is far more difficult from 650 to 720. Why? Because of the starting point, raise from these two credit score are quite different approach. Also, one of the basic concepts at best of raising your credit score is the removal of negative items from a report. Therefore, in this article, we'll show you some techniques that will improve you credit score only know by very few people.

While talking about the removal of negative items, even if you have no derogatory info on your report, you can still apply the techniques to work. OK, let's begin the overlooked methods.

DEBT to CREDIT RATIO: One of the falsest belief is "I have excellent credit, I pay all my bills off in full every month!". Understanding your debt to credit ratio play an important role getting your "credit mindset" right . What is debt to credit ratio? Debt to credit ratio is your ratio of debt to total available credit you have been extended.

For example: Total unsecured revolving credit account: $20,000 Currently in debt: $5,000 Your debt to credit ratio: 25%

The primary way lenders make money is by charging interest. So, the purpose of credit scoring model is to make you maintain balances and pay over time. This is the real credit worthiness and that is why lenders make money, because the main profit comes from interest and not annual fee.

We've discovered one thing, having a proper debt to credit ratio will increase your credit score faster than paying off your bills in full each month.

So, what to do if your debt to credit ratio is too high?

For example: Total unsecured revolving credit account: $20,000 Currently in debt: $15,000 Your debt to credit ratio: 75%

So, how to get debt to credit ratio down without selling everything you own?

There is one technique you can use:

SUB-PRIME MERCHANDISE CARDS: A report from one of more of the major credit bureaus - a good and powerful tool for increasing high credit limit and decreasing debt to credit ratio is "Sub-Prime Merchandise Cards".

Sub-Prime Merchandise Card is a card attached to a line of credit which allows you to buy merchandise from a specific vendor. In most cases, the merchandise will be bought via a catalog or online mall.

Here's how it works: the company give someone who applied the card for for $3,000 to $15,000 with no credit check and no cosigner. However, the card is only good for merchandise through their website or catalogs and the consumer is required to put down a deposit on whatever they purchase. After the deposit is paid, the remaining balance is financed on the card.

For example: Someone buys $1,500 worth HDTV, and their deposit is $500, so they can finance $1,000 on their merchandise card and make a payments.

That sounds great, right?

With Sub-Prime Merchandise Cards, your credit will be reported to at least one credit bureau. This means if you purchase something worth $1,000 and your card limit is $10,000. you finance $9,000. Your credit report will just like other credit card and do three important things for you

1.) Increase your "High Credit Limit" by $5,000 overnight, just like any other unsecured revolving account.

2.) By carrying a small outstanding balance it will positively impact your credit report by building and showing potential lenders your credit worthiness.

3.) With a good payment history you are virtually guaranteed to receive "legitimate" pre-approved credit offers in the future due to other lenders renting your name from the credit bureaus.

This technique is good and hard to beat for both cost and effectiveness. The most important thing you have to know about is which cards report to the credit bureau and offer the best rates.

We must remember one thing, our credit score is more important than it has ever been in the history of the credit reporting system. Credit miracle is what we want, but it doesn't happen overnight. So we can create our own credit miracles by applying simple insider strategies consistently over time.

Are you struggling with your credit score? Info that I recommend: How to raise your credit score up to 249 points in under 90 Days. You may visit: Credit Secrets Bible