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How to Quickly Improve Your Credit Score by Adding Positive Payment History to Your Credit Report

How to Quickly Improve Your Credit Score by Adding Positive Payment History to Your Credit Report
Most consumers are aware that negative items can be disputed on a credit report with the three major credit reporting agencies. Often, this process can lead to a significant improvement in credit quality score by deleting the exceptions elements that a reduction in the score.

To achieve excellent credit quality, but it is enough to remove not only negative entries. Why? Since a lack of positive payment history is also an obstacle for those with good> Credit. You need to show a record increase on-time payments in relation to your credit score.

In this article I will describe two simple techniques for the integration of good credit entries to your file.


All that is necessary to add many years of excellent credit quality, is the love and trust of a friend or family member who has good credit.

Credit card companies are always willing to have their bestCustomers add additional cards for family members. By adding your name to one or more of their accounts, they will actually be issued a new credit card in your name. The "catch" is that it will be the signatory on the account, which means that they are responsible if you miss payments.

Of course, you never want on the creditworthiness of a friend or family member of danger, they simply have their own address on the application for the replacement card. In this way the card isbe sent to them, and although your name on it, the card will remain in their possession. You can even cut if they want it.

The simple beauty of this approach is that the new card to show on your credit report, and usually it is the opening date of the original map (not just the application date for the replacement card), and the entire credit History shows this card! It is, as always, the years have good credit, to file with thestroke of a pen.


The "savings account Savings Loan Technique" is a great way to add positive payment history, your credit file. It will benefit you with a link to excellent credit quality for most types of financial instruments applications. This technique does require some cash - at least $ 500 to $ 1,000. However, this amount in a savings account as loan collateral held and the entire out-of-pocket costs for this procedure will be completed shouldwell below $ 50.

Here is the passbook savings loan technology in detail, so you can see exactly how everything works.

Step 1 - Find a small bank that meets your needs

I recommend that you work with smaller community banks and not the big chains. The smaller banks are more likely to understand the nature of the account that you need to be opened, and they are more likely to work with you and be flexible. Savings and loan crisis institutions and credit unions canalso used to be assumed that they meet the requirements. The desired product is called the "passbook savings account," which is basically just a simple savings account. And the type of loan you take is a "passbook savings loan." This is the easiest way to get loans, because it is completely backed up with your own cash. Most banks are only willing to loan you 85% of the amount you have on deposit, so there is always some reserve money in the account.

Your bank will targetsuitable for this method if it meets the following three requirements:

A. The bank must have a passbook savings account product no monthly fee on balances of $ 500 to $ 1,000.

B. You must be able to credit up to 85% of the account balance on a 12-month loan schedule. This is typically a passbook savings loan.

C. CRITICAL: The bank must report on activities that account for the three major credit bureaus (Experian, TransUnion and Equifax).

WhenUsing this product does not meet bank requirements do not, then the bank. There are thousands of small banks across the country, so it should be fairly easy to make sense for you find in your area.

STEP 2 - Open a passbook savings account

Go to the bank, you have chosen, and open a passbook savings account for $ 1,000 or less --- depending on what you have to work with. Take your savings account at home and wait a week or so, because youdo not want to see how you opened the account only for the purpose of taking the loan.

Step 3 - You receive a passbook savings loan

Back to the bank and ask for a loan officer to see. Looking for the best, courteous, and explain that you are at the following passbook savings loan for $ 850 (or 85% of what amount you want to actually deposited).

If you are of your loan, your savings into account frozen. But every time you make a payment to release an amount equal to yourPayment, less a few dollars for interest. Be sure to ask that the loan for at least one years duration, with minimum monthly payments. Do not be a simple one-year loan with no payment. This will not benefit at all, because you are trying to establish a history of payments.

You will not be for this type of loan, regardless rejected what your previous credit history and in most cases it will not be reviewed again. If you have bad credit, make sure you tell your loanOfficer before he or she pulls your credit history. Tell the bank representative that you are trying to restore your credit and that a good credit rating is very important to you now.

STEP 4 - Make your payments

If one starts from an interest rate of 6% cost of your monthly payments for the $ 850 loan is $ 73.16. (Remember, this is a secured loan, so that the interest rate should be relatively low.) Since you've borrowed "$ 850 in cash, you'll use the money tokeep the payments go to the loan. Be sure to make your payments well before the due date. Always pay early on to be on the safe side to be on the creation of good payment history.

STEP 5 - pay off the loan early

After six months early repayment of the loans. At this point you will be around $ 980 remaining from your original $ 1,000 bail, a part of it as cash on-hand, and some remain in the savings account. They will have a whopping $ 20.31 paid in interest have (assuming that thelag) at 6% for the secured loan. I am sure you will agree that $ 20 is a small price to pay for adding six months worth of good payment history, your credit report!

STEP 6 - Make sure that the loan Shows on Your Credit Report

After you have paid to obtain loans from the fresh copies of your credit reports to check whether the loan payment history shows, is correct. As you select a bank that reports regularly to the three major credit bureaus, Every effort should be displayed correctly. But mistakes can happen. If the loan is not duly reported, then ask the bank directly to the omission, or ask the credit bureaus in writing to the credit bureaus to correct your report to add.

The Passbook Savings Loan Technique is a simplified version of the more complex "three bank technology." Basically, the concept of the secured loan is going to open a bank account to another account at a secondRepeat> bank, and then the operation, the third for a bank. The math is much more complicated, but the principle is the same, with the added advantage that the same three loans Add positive payment history of your credit report. The procedure costs a little more In the interest expense and requires a lot more work, but really turbo-charge your positive credit history.