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Charles Kirkland : Contributing Editor
Financial Advisor/ Loan Officer
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The Quick Fix For Credit     More Articles...

I was going to call this article “How to cheat at the credit game”, but what I am about to tell you isn't cheating, its just understanding the rules, and playing by them.

Being a mortgage lender I usually do not have the luxury of time in helping improve the borrowers score. Usually a borrower will not come to me until they have a purchase contract, usually with a 30-45 day closing period {not much time to work}. So I have some simple things to do just prior to having your credit pulled that may increase your score.

Being Scottish (that means I'm cheap) most of these things will not cost you any money - and the others are cheap.

The closer you are to your credit limit the lower your score. So, if you are carrying a high balance on your card, call all your credit card companies and ask them if they can increase your limit, without pulling your credit. Most will look at your payment history with them and make a decision. You do not need a large increase, any will do. For example: you have a credit card with a $500.00 limit that you owe $450.00 on – you are using 90% of your available credit. Now lets say you call and they increase your limit just $200 to $700.00 – now you are at 64% of your available credit – and your score GOES UP !!!!

Not all credit companies will increase your limit, but each one that does will help you. The next technique (trick) would be to shift balances between the cards. For example the card you use most has a limit of $1,000.00, but you owe $900.00. You have another card with a $1,000 limit that you only owe $400.00 on. Transfer $250 from one card to the other so now they each are reporting a balance of $650.00 – and your score GOES UP!

The last technique is the one that costs some cash and that is to just pay-down the balance to under 67% of the credit limit.

One factor that changes your credit score is how soon your next payments are due. The closer you are to the due date, the lower your score. Therefore, if someone is going to be pulling your credit soon, make your payments NOW – even if your a a couple of weeks early.

The next technique is my personal favorite, I call it THE WHITE KNIGHT. In order to do this you need someone who actually likes you (could be a parent, brother, sister, best friend from high school etc) and has a credit card they have never been late on. It doesn't cost them anything and it can definitely improve your score.

The best choice is a credit card that is more than 5 years old; $5,000.00 limit or more; with little or no balance. Now beggars cannot be choosers so the minimum is a card they have had for at least 6 months. All they have to do is call the credit card company and issue another card in your name. When the card arrives (it goes to their address), they activate it and then cut it up and throw it away.

Now the entire credit history will show up on your report, just like it was your card. If it is someone you have never shared a common address with then you need to make sure that when they get  your  card issued they give the customer service person your Social Security number OR date of birth – that wll make sure the information finds its way to your credit file. You can have one WHITE KNIGHT with lots of cards or lots of WHITE KNIGHTS with just one card each. A WHITE KNIGHT can even be someone with horrible credit, but they have the one card they have never been late on.

Too many people focus on the removing of the Bad info, but ignore the more beneficial technique of building positive history.

So lets take a look at how the rule book is coming along:

1. Don't close any open accounts, unless you want your score to go down for six months.

2. Don't let anyone run your credit (unless absolutely necessary).

3. Don't open any new credit, within 6 months of getting a mortgage.

4. Only contest derogatory information if it is less than 2 years old.

5. Only contest derogatory information older than 2 years if it is reporting a 'double negative'.

6. Don't payoff old debt JUST BECAUSE you think it will help your score.

7. When looking for a mortgage always contact Charles Kirkland (OK, so this one isn't exactly a credit rule, it's more of a life rule)

8. Don't let the balance of your credit cards exceed 67% of the available credit.

9. Make your payments before credit is pulled.

10. Be nice to everyone, you never know who your White Knight will be.

11. Get you mortgage from Charles Kirkland, he can lend in all 50 states and he knows all this credit stuff, and more.

"My Mortgage Man"

Charle's E-mail  

Charle's Website

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