The Lazy Person’s Way To Improve A Credit Score

I am the laziest person that I know. Seriously, if given a choice between eating lunch and taking a nap, I’m going to get some rest. I play it off that I work two jobs, but it is really because I am just plain lazy. To a gentleman who prefers to procrastinate and enjoys a leisurely pace, improving one’s credit score can be a daunting task. Luckily, there are several ways to improve your credit while doing my favorite thing…nothing at all.

Leave things as they are

For this all you need to do is let your current credit card accounts get older. According to the Fair Issac Corporation (FICO), the length of your credit history accounts for fifteen percent of your score. So, all you need to do is keep making your payments on time. You will find a pie chart at this link that fully explains how FICO builds a standard credit score.

Stop shopping for credit

Each time you apply for a new line of credit, your credit report is pulled. These hard inquiries reduce your credit score by about 5 points each. If you are shopping for the best rates and terms by applying for a loan through multiple lenders, credit reporting agencies group the multiple applications into one inquiry, so you will only lose 5 points as long as all of the applications are in a two-three week period. The drop in your credit score will disappear after 60 days, but the hard inquiry will show on your credit report for two years.

Actually getting a loan will lower your credit score in two ways. New credit accounts for ten percent of your credit score and the amounts you owe account for 30 percent of your credit score.

Take a piggyback ride

You can improve your credit score by piggybacking on someone else’s credit history. There are two ways to do this. With credit cards, you can be added as an authorized user on an account of someone with a good credit history. Secondly, you can find someone who is willing to cosign a loan for you.

Let your bank pay the bills

Your payment history accounts for thirty-five percent of your credit score, so making all of those pesky payments on time is very important. At the same time nothing is more aggravating than having to write checks or authorize electronic fund transfers every month. So, why do it? Sign up for auto-pay and let your bank take care of it all for you. All you have to worry about is having enough money in your account when the payments hit.

Many people think that improving their credit is something that they have to work at every day. Fortunately, it is a lazy man’s game and you can take a nice leisurely approach and still move toward excellent credit.

More New Cars Sold In Colorado Than Anywhere Else In The Nation

It’s no surprise that the Denver Auto Show looks poised to be a success—Colorado is selling more new automobiles than any other state.

The Colorado Auto Dealers Association reported that almost 16,000 new vehicles were registed in the month of March. That figure represents thousands more than were registered in the previous months of January and February. Incredibly, Colorado auto sales are nearly 50 percent higher than the American average. And these figures continue to rise every year.

The notable change in increased sales comes with good reason. Tim Jackson, President of the Association, explains that the sales are in part due to Colorado’s low rate of unemployment, as well as their strong real estate market. These encouraging developments help to keep consumer confidence high. People are feeling more secure in their incomes and lifestyles and their confidence is translating into more new automobile sales.

The Denver Auto Show offers a variety of cars: eco-friendly electric and hydrogen-powered vehicles, as well as classic cars, including the Ford Mustang, which is celebrating its 50th anniversary. They offer a large variety of automobiles for everyone. Denver’s new car industry is booming and the high caliber show is a reflection the pride Denver has in it’s new found status.

Read the full article here:
http://denver.cbslocal.com/2014/04/08/colorado-is-the-leading-state-in-new-car-sales/

How Long Does it Take to Rebuild Your Credit with a Loan?

Credit ReportWe would like to be able to give a simple answer like it takes X months to rebuild your credit with a loan, but we just cannot. The truth is that a single loan will not rebuild your credit, not completely. Experts say that a loan could boost your credit by 5% per month, but in reality, you will need to take a multi-step approach over 12-24 months before you will see a significant improvement in your credit scores.

Step One

The first step to rebuilding your credit is to get a copy of your credit reports. You can get them from the three largest credit reporting agencies by visiting www.annualcreditreport.com. With your reports in hand, you can look at all of the negative activity. Is any of that information incorrect? If so, dispute the account. If you have documentation, the agency my take the account off your reports. Additionally, if the information is disputed and the creditor does not respond, the account will be removed from your account. Take care, though. Most negative accounts stay on your reports for seven years. If that deadline is approaching, let the time limit expire instead of risking having the account reactivated for another seven years.

Step Two

Credit cards are the easiest line of credit credit to open, much easier than obtaining a loan with bad credit. You will want to start by obtaining a new card. Even if you have to open a secured credit card account. Note that I said a secured credit card, because a pre-paid card is not the same. Pre-paid cards do not report activity to any credit reporting agencies and will not help your credit score. You will want to keep the balance on this card under thirty percent of your credit limit in order to maximize the effectiveness of the account. Your best bet is to charge a tank of gas, then pay the balance on the card the next day. This will show a positive payment history, while keeping the balance at zero. After making six payments like this, apply for a second card, but do not use it. This will show a higher credit limit and build a positive credit history on multiple accounts.

Step Three

Now, back to the title: ”How Long Does it Take to Rebuild Your Credit with a Loan?” After obtaining the second credit card, wait another three months to allow the ding from having your credit report pulled during the application process fade. With the two positive accounts, your score should be at least 520, hopefully, anyway. There are many specialty lenders who are willing to work with a credit score of 520 in order to arrange a car loan. Most likely, a car loan will be the only one you will qualify for if your score is under 600. You will need to be prepared for a high interest rate, short repayment terms, and a high down payment requirement. Additionally, to see the greatest boost to your score, the payment should be in excess of $150 per month.

You will see your credit score drop the day your new loan is posted to the credit reporting agencies. You can look at this chart on FICO.co to understand why, but the main reason is that credit scores take a short term drop when you obtain a new line of credit. After three months, you credit score will return, at least to where it was when you got the loan. It will take twelve on time payments before you see a significant improvement to your score. After eighteen on time payments you will see the maximum benefit from this first loan.

While you will see an improvement in your credit score after eighteen months, you will need to obtain a second, or third loan, before your score will approach a ”good” rating of 680 or higher.