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Are There Tricks To Improve Credit Score?

By Tim H Lambert

Any person who has a poor credit score is eager to find some tricks to improve credit score. Why do they need good credit score? It is for the approval of the loans they applied. Good credit score also get them good insurance rates compared to poor credit score. Remember that creditors or lenders will look up to your credit score in evaluating your risk as a borrower. Here are some of the effective tricks that can boost your credit score in a short time.

The best and easiest trick to boost your credit score is by reducing your ratio of limit-to-balance in your credit accounts. Try to reduce you ratio in the range of 30% to 50%. For example, if you have a $10,000 limit on your credit account, you will want no more then $3000 to $5000 in your balance. Your credit will drop anytime you overuse your credit and the ratio exceeds the limit. The proven and fastest way in reducing your balance-to-limit ratio is to pay down all your balance, if you can. It is also good to give a call to the lender and then ask them to give you an increase in your credit line. If the two options do not materialize, you can choose to spread your balances to other credit cards while keeping all their ratios below 50%.

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Another trick that will work for your good is to link an old credit line to your credit history. This is an old credit repair trick. In order to be successful in this trick, you will need a close friend or relative, and that friend or relative must have nice credit and a credit account having a low balance-to-limit ratio. You can add them as an authorized user in your account; this will help you placed a positive credit history in your credit report.However, this trick is not applicable to all. The key point here is that there is a person close to you that will not make a poor credit. If person suddenly starts late payment, it can affect your credit.

One of the most probably and best tricks to improve credit score is the utilization of a secured credit card. Secured cards can give quick positive history in your credit report that will definitely affect your score positively. Secured credit will work because it is like an ordinary credit card in terms of reporting, however, it is easier to get. All you really need is a job and the capability to re-pay the card.It is typical that the lenders hold cash deposit that equal to your credit limit in an account. This is an assurance that they will not lose their money. Defaulting on your account will prompt the lender to take the amount you borrow from the deposit. However, cancelling the account or getting upgrade to an unsecured account makes the deposit refundable.

Another simple trick you can do to increase your credit scores is by investigating your credit report. If you find any false or old items, dispute it. Most of the time, creditors, or lenders will not face disputes especially on the accounts that are three years old and above. Disputing is possible through the websites of the credit bureaus.

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