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Anyone know of a way to get a good credit rating?

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quixotron

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What i mean is. does anyone know how to up their credit rating w/o taking loans or applying for new credit cards? i heard those prepaid debut cards work. who knows?
 
I heard that if you overpay your credit card so that the CC company owes you money, it helps. BUt I've never seen it in writing.
 
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Heard a good one today --

Fellow said someone stole his identity and his credit rating went up. LOL
 
I know that everything is different depending on the location, but those prepaid credit cards really do work (as long as you pay the bills on time). They are a horrible deal as far as what you get -- you start out with a $300 balance or so, plus you paid to get the card in the first place. But if you make the minimum payments plus a few dollars, you will have it paid off in a year. The idea is to make minimum payments to extend the amount of payments that you make on time. By the time you have it paid off, your credit score goes up dramatically. My sister-in-law and her husband went from bankruptcy to a 700+ credit score in a year and a half. He also went to myfico.com and signed up for the paid monitoring service. They have a "calculator" that allows you to see your estimated score if you do certain things. Like it shows you what would happen to your score if you max out a credit card, or if you pay all your bills on time for a year. That helped them to see the absolute maximum that they could raise their score in as little time as possible.

Hope that helps

Mike
 
Personally, I think credit ratings scores are a scam. Your reward isn't usually more then 2-3%. Hardly enough to justify all the money wasted on interest you paid to earn it. Most banks and lenders will negotiate rates if you ask or shop around. As long as you don't have a lot of negative issues, your score doesn't really amount to much. Just pay your bills responsibly, and you can get decent rates. Mostly credit ratings are used to justify higher rates (greater profits), but most are willing to do anything to get your business. They can always slip something into the agreement, which allows them to raise their rates, or high penalties for late payments later (sneaky bastards).

Use credit only when you need it, not just to earn a basically useless and arbitrary number on paper and you'll be much better off in the long run.
 
Don't take anyone's advice! =) Call a consumer credit councilor (make sure you find a legit one) and find out what your credit really is and what you need to do to improve it, they'll explain pretty much anything you need to know. A pre-paid card is only going to help you if you can't get a regular credit card even if you're out of debt. If you have current debt that's causing your score to be low the only way to improve your credit is to get rid of it.
 
I've heard of using a credit card to purchase short-term CDs (certif. of deposits) and even though their return is less than the card's APR, you don't lose very much in exchange for building credit.
 
pay your bill on time

Robert-Jan

Well paying your bill on time doesnt raise your credit above your base rating. it does indeed lower it if you're late or overcharge during a monthly billing cycle.

I was going to go with paying more than my minimum, paying off my credit card and then some and the debit card thingy.
 
I was around a 780 before I bought my house by doing nothing more than paying my bills on time. I've never had a late payment on my credit history. A year after purchasing my house, my credit score has gone up to 804 and still the only thing I'm doing is paying my bills on time.
 
Score=Credit Availability.

Your credit score is equal to the amount of credit someone is willing to lend you.

For instance if you have three credit cards each with a limit of 2,000 a balance of zero then your score is up. However use them all with a balance of x and include all your expenses then you might have a Debt to Income ratio. That can set you out of balance and your score drops ?

If I'm wrong someone please correct me but that is my basic understanding. Not width standing the timely payment of any debt. Late payment reflection will always become a score dropper.

My only business lesson:

When your (out-go) exceeds your income, then your (up-keep) is your downfall.:D
 
It's still pretty much a scam. Credit scores are a guideline, not a guarantee of anything. The lender still has free rein.
 
Not really a scam, it's good for the consumer if they play it right. A high credit score gives you more headroom to negotiate with lenders that don't rely wholly on an automated systems for interest rates and terms. Shopping around for interest rates and a little creative fibbing can save you a lot of money if you have a good credit score. Where if you have a lower credit score such a lender is going to be more likely to point out that you have a lower credit score to use against you trying to get such rates or perks. A matter of perception really, but real none-the-less.
 
I have an excellent credit rating because my credit lenders don't know I am retired without a job and receive only a small government pension.
I don't think they know about the fortune I have saved that keeps growing nearly every day. It grows faster than I can spend it.
I have never missed a payment on the single loan I have. My car loan has an interest rate of only 0.9% per year and my house is payed for.
 
Where's the money go when you kick it? =)
 
Most lenders deal with credit scores and Rx ratings, not caring how it came to be that way. If you go to a short-term lender ( loan shark?), you pay a higher interest rate and get a new debt to pay off. If that new debt is paid regularly and on time, your rating goes up with them only, not overall. I see that Manitoba has regulated the payday loan industry.
 
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