Ways to increase credit score? Authorized user? (mortgage broker, credit card)

[BayAreaGuy]

I've been reading online about possible ways to boost my credit score.

One method is being added as an authorized user to a family member's credit account with a long history, low balance, and good payment history.

Has anyone done this?

Does it work?

[EscapeCalifornia]

I read that the credit card companies are on to that manipulation of the system and have taken measures to prevent it.

[Lovehound]

Originally Posted by BayAreaGuy

... being added as an authorized user to a family member's credit account with a long history, low balance, and good payment history. ... Does it work?

Nope.

Originally Posted by EscapeCalifornia

I read that the credit card companies are on to that manipulation of the system and have taken measures to prevent it.

Yep. Or that's what I've heard.

Otherwise the credit companies would have to be idiots.

[bhcompy]

quick way to raise your credit score is to lower your debt to available credit ratio. the mortgage brokers ive spoken to say that for each individual account, keep the balance below 50% of the available credit as it makes a significant impact

[suzie02]

Originally Posted by Lovehound

Nope.



Yep. Or that's what I've heard.

Otherwise the credit companies would have to be idiots.

I thought they were about to change the rules but they are delaying it.

[Lovehound]

Originally Posted by suzie02

I thought they were about to change the rules but they are delaying it.

I think it's more about charging practices that credit card issuers use to milk the customers rather than any credit score. I'm talking about abuses like jacking up your interest rate because you missed one payment, or even worse jacking it up because you were late on some other credit card. It's also about the practice of making the credit agreement so complex that nobody can understand it until you're hit with unexpected fees and increased interest rates.

In other words it's more about what they charge you than how they set your limit. But I could be wrong. As far as I know this issue is still rather murky. Or to put it another way, "They're delaying it."

[bayarea-girl]

Pay for everything in cash and stop using credit. Credit is the biggest scam out there. When you save enough to pay in cash you have more options and you don't have to worry about credit scores as much.

[SOON2BNSURPRISE]

I agree with bayarea-girl on this one. Chances are though most of you are wondering about how to have a good score so you can buy a home. I would say get 2 cards, use them and pay off the balance each month. Never keep a balance on a card. It will show a history of using the card and that you have nearly all your available credit. don't use your card for gambling, trips to Vegas, or even at a thrift store. Credit card companies don't like those things at all. Amazingly you can buy a car with cash. The fact is that instead of making 60 payments for a car, you can save for 48 months and pay cash. We just seem to live in a society that wants instant gratification and doesn't want to work our way into items we may not need.

[bayarea-girl]

If you save to pay cash it is always the better way to go. Even in buying a house or a car one can save up to buy these things. When you calculate the interest you will be paying on these things it makes no sense to take out the loans. If you can't buy a house cash out then rent. If you can't afford to buy a nice shiny new car buy used or take public transportation. Look at what is happening in our country with people who couldn't buy their homes, after spending all that money making payments on a place they didn't own the bank took it. Cars, clothes, homes, will all go down but the interest to pay for these things will go up. You will get a better deal by paying cash.

[Lovehound]

A mortgage to purchase a house is an exception. Other than that it's better to pay cash for everything, or put things on your credit card but only if you pay off the card's balance every month.