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Tigriz 05-15-2006 10:25 AM

How can I better my rating?
My husband has wonderful credit, and most of our purchases are based on his credit alone. We are diligent about making sure everything gets paid on time to keep that score up. Due to some extensive college spending, my credit rating is not great. It's not as horrrible as it could be, but it's nothing to write home about either. Is there any way I can increase my own rating without affecting my husbands credit rating in the process?

Benji 05-15-2006 11:34 AM

Re: How can I better my rating?
You might try a credit card in your name alone. The credit limit should be low, but you can use it to make planned purchases and pay the card off each month. If you can show that YOU are capable of paying things off in something that is entirely in your name it can go a long way in restoring faith in your ability to manage credit.

Alternately, a personal loan from the bank that is repaid before the end date for the loan will also help.

angivodka 05-20-2006 06:12 AM

Re: How can I better my rating?
but what can you do if you have really bad credit and cannot get approved for a loan or a credit card?

ninikins 05-21-2006 07:04 PM

Re: How can I better my rating?
Talk to a financial advisor, there are plenty of people in the same position and there are people who are willing to negotiate pay-off schemes for you, during which your credit can be restored gradually.

Green Diva 06-18-2006 04:41 PM

Re: How can I better my rating?
Pay your bills on time EVERY time is one of the best ways to improve your credit rating. Also if you have a credit card be diligent about using it for small purchases and paying it in full each month.

Benji 06-23-2006 04:20 PM

Re: How can I better my rating?
Credit ratingas are a mixed bag of online payments along with a track record of accepting credit. If you never accept credit - there's no hostory to draw from. However, if you have lots of credit and don't pay back in a timely manner it can also knock you out of the running when it comes to loans.

So, two tips if you want to increase your credit rating (at it's been said in this thread before).

1) Accept a moderate amount of credit.
2) Always repay on time.

kelkat 06-24-2006 11:01 AM

Re: How can I better my rating?
The key to getting and keeping a good credit rating is to NEVER borrow more than you can pay. I think the best rule of thumb (and have said it before) is to use only have of your income as a base amount. In other words, when you look at debt to income ratio, only use half your income. This leaves you plenty for savings and investing. If you have the money in savings, you protect yourself incase of layoff or job change.

brian 07-01-2006 09:37 AM

Re: How can I better my rating?
I think someone else suggested elsewhere that getting a store card would be a good immediate step.

Also, you could look to have a credit card set up in your name, and if the bank has any reservations about your application, you could always set up your husband as a guarrantor.

In fact, you could even do that with a small loan to be paid off over a few months - again, if you can't get the loan in your name at first, get your husband to sign up as a guarrantor - ie, if you can't pay it, he'll step in.

My youngest brother had problems with his credit rating, but my mum set herself up as a guarrantor which helped him out.

Certainly applies in the UK anyway, but I'll be surprised if there isn't a similar system in the US.

Oh - and as above - always pay back on time!! IF using a credit card, ensuring the full amount is debited from your account every month, and only make a few small purchases. Same with the loan - make sure there's always enough in the account for repayment!

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