Credit Score Secrets

Here are 3 credit score secrets that many people do not know. If you would like to learn some tricks that can help you raise your credit score, please check out our credit guide tips.

1. Every time you do request a loan and a lender pulls your credit report, it generally reduces your score by a few points. It is part of the credit score formula to handle people trying to apply for credit and loans to live beyond their means. As another general rule, keep your loan processes within 2 week periods so that all of the credit report lookups are bundled together to appear as one single request. Such as trying to recieve the best rate for a mortgage.
2. Avoid using credit card introductory offers if you can. They might help you in the short term financially, or get you out of difficult debt, but as a long term solution they will most likely hurt you. Lenders want to aquire customers that are loyal because there is a cost associated for each loan. They would rather lend money to someone who is likely to stay than someone who has a very unlikely to stay and move their money over at the next good looking introductory offer. See improvement tip number 5.
3. If you have little or no credit score, a quick way to bring up your credit score is to aquire debt. If you don't pay off any debt, then how can you show that you are a good borrower? Aquire some debt and pay it off. I have heard of too many people looking to get ther first mortgage denied simply because they have never aquired any previous debt before. They have paid everything in cash and they're very proud, which they should be! However you still need to establish a track record before someone will loan you larger amounts, such as a mortgage. You need to prove your trustworthiness. Buy a car with a loan, or get a secured visa card, and basically establish some track record. At a bare minimum, borrow at least a few times before you go looking for larger loans.