Two Tips to Raise Your Credit Score

You can improve your credit score by having an open major credit card. On this credit card you should try and keep the monthly balance around 10% of your available credit line.

In other words if your limit is $1,000 then try to keep the balance around $100. This shows the credit bureaus two things:

1. Your credit is being used.

2. You have a good ratio of available credit to debt.

In other words you have available credit at your disposal. The credit bureaus weight this factor heavily when they calculate your score.

By showing you have credit that is not being used; your score will get a bump. This method is most effective with a revolving line of unsecured credit.

Another tip, if your credit is to low to be approved for an unsecured credit card. Then ask a friend or relative with good credit to add you as an authorized user to their credit card account.

This is commonly referred to as piggyback credit. There have been recent reports that the credit bureaus are no longer going to give any credit score benefits to an authorized user.

However the credit bureaus are such large bureaucracies that this new policy will not take effect immediately. It is estimated that authorized user's credit score will still get a bump for the next 6-8 years.

Make sure to use good judgment when choosing a friend or relative. The account will show both positive and any negative information that can be reported. So if the account became delinquent it could hurt your score.

For you to be added as an authorized user, the account holder needs to call the credit card issuer and request you to be added as an authorized user. This can all be accomplished over the phone.

You then will have a copy of the credit card with your name on it mailed to your house. I recommend returning the credit card to the account holder.

The accounts' details are then reported on the original account holders' credit and yours. This way you receive the benefits of on time payments and available credit.

This method of building credit is in the process of being discounted. However for the time being it is by far the easiest and cheapest method to building positive credit.

For more credit repair tips or for a free sample dispute letter to remove negative information on your credit report or to learn how to dispute equifax visit us.