RULE #1

Keep Credit Card balances below 30%,

Pay down credit cards to less than 30% of credit limit.

Ask the credit card company to increase you limit: here are the questions to ask

Will you increase my limit without pulling my credit score?

If I request a specific limit, will you deny me all together or will you counter offer?

If you have multiple credit cards and some have low balances, you can transfer funds from one card to another so that each one has less than a 30% balance.

If you are four (4) months from needing a mortgage, obtain a new credit card and transfer balances so that each current card has less than a 30% balance.

 

 

RULE #2

Maintain 3 active revolving credit lines

Revolving credit lines are credit cards like VISA, Master Card, Discover (they are not department store cards, debit cards, or gas cards)

The oldest credit cards with the highest balance have the biggest impact on your credit score.

Wait six months between opening new accounts

Never close a credit card account

 

 

RULE #3

Take yourself off the credit bureau marketing list

Have you ever wondered how you get offers for insurance and credit cards in the mail from companies that don’t even know you? The credit bureaus are huge data bases of information and they sell your information to companies that want to offer you credit cards, loans, insurance.

 

By removing yourself from their list, you can increase your score by 5 – 10 points, you also decrease your chances of identity theft.

Visit www.optoutprescreen.com and permanently opt-out.

 

 

RULE #4

Have at least one installment loan on your credit report that is active or paid off

      a. installment loans are auto loans, leases, boat loans or other credit attached to personal property (furniture, computers)

     b. If you purchase furniture or household electronics, make sure it is an installment loan and not just another revolving line of credit.

 

 

RULE #5

Maintain a good credit mix

(1) mortgage

(1) installment

(3) open/active revolving

 

RULE #6

Review your credit report a minimum of 2 times a year and remove all errors

Concentrate only on high priority errors that happened in the last (2) years.

Negative payment history

Bankruptcy items that still showing as past due accounts

Accounts that are not yours

Collections notices that are not yours

Duplicate items

Social security numbers and names that are not yours

 

RULE #7

       Negotiate a letter of deletion before a collection is paid

       Try to get the collection deleted by getting a letter of deletion from the creditor or collection    agency Collections that are 2 years old only hurt your score minimally, after 4 years not at all.

 

For all your Credit and Debt Concerns –

Premier Credit Management –www.pcm-credit.com

Premier Debt  Solutions www.primodebt.com

House Votes to Move Up Credit-Card Law, Citing Rates

 http://www.bloomberg.com/apps/news?pid=email_en&sid=ay5OyRgpBtIs

 

 

Contributed by Mario Romero, CRS, CDPE, CLHMS
602-252-4191 office, 602-254-9810 fax
The Romero Team - Melcher Agency
www.TheRomeroTeam.com
www.ShortSaleTeamAz.com
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