Credit Repair Tips {Understanding Credit} More Credit = High FICO Score!

Understanding how your credit score works and why having credit is one of the most important things you can do in relation to having a great credit score!

00:00 Introduction
0:15 Credit Availability
1:03 Authorized User
2:00 Credit Usage
2:50 Catastrophic Events

30% of your credit score is based on credit availability. That is a huge chunk of your possible credit score that you would be missing out on!

Without credit cards, you have no credit availability. An installment loan or car l9oan does not give you credit availability. If you have a 10,000 car loan and make a few payments, can you receive more credit on the same loan? If you pay off $5,000 of it can you charge up the other $5,000? No of course not - that is why there is no credit availability.

If you have a $1,000 card, you have credit availability. Obviously paying the bill on time is important, but equally important is your usage of the credit. Do you max out the limit on your credit card? If you do you'll be rewarded with a lower score!

If you keep your usage under control, perhaps no more than 30% of the credit card limit, you will be rewarded with a considerably higher score.

Also important is the age of the cards. a 6-month-old credit card has limited seasoning and history, therefore it will not tell the credit agencies much. A 10-year-old card provides a strong indicator of how you handle your finances.

So... how to do suddenly establish 10-year great credit history? You can't! But people you know with this great history can easily do this for you. If a friend or relative has this great history:
3 rules for doing this
1) less than 30% of the limit owed (otherwise you do not want it on your credit report)
2) always paid on time (otherwise you do not want it on your credit report)
3) the older the credit card the better - preferably over 5 years old,

then the credit card company will send them a credit card with your name on it. They can cut up the card. You don't use their credit.

You just get to use their great history on your credit report.

People often ask - will it affect their credit - not at all. Not even one point. It does not affect them in the slightest!

http://www.FireYourLandlord.info for FHA loan application online. Apply online. even FHA Loans bad credit!

FHA Loan guidelines for FHA mortgage loans are the same in California and nationally.
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#creditcards #creditscore #fico

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Chris Trapani
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Cell: 310-350-2546

Fire Your Landlord ®
800 N. Haven Ave, Suite 240
Ontario, CA 91764