When each of my 3 children reached 18 yrs of age, I co-signed with them for a $500 limit Charge Card. They would use it for just a few items and then they would pay off the balance each month religiously so as not to accrue interest. After a year or so, the card companies would send a notice that they wanted to raise their limit because of the good payment history on these small "loans".
At that Point I would contact the agency and request that MY NAME be taken off the account, reasoning that my kid was now establishing a history that was worthy of reward. These card companies did so and my kids were off an running towards a good score. When my oldest got married, she had a good credit score, but her husband to be had NO history, so she was in better shape that he was.
Below are some tips that and info that were provided by Michelle Baker, a loan originator with Executive Mortgage of Michigan. You can click on her picture at the right at go to her web site or email her at firstname.lastname@example.org. Thanks Michelle!
What are Credit Scores?
-There are three major reporting agencies that keep track of these histories, they are : Trans Union, Equifax and Experian.
-The scores range from 336 to 850 (higher is better)
-Not all companies report at all and some only report to 1 or 2 of the agencies, not necessarily all three. This is why the credit scores range from one agency to the next as the may all have completely different information.×
How do they break down your score?
-For the general population, the following is how these scores break down:
-35% based on payment history
-30% based on amounts owed
-15% based on length of Your history
-10% based on new Loans
-10% based on types of lending in use
-79% of these reports contain errors. These errors can result in:
-Tips for building and maintaining positive scores.
-apply for at least one charge card
-do not apply for too many cards in a short period of time (too many inquiries)
-have a good mix, two charge card accounts for every one installment loan
-never charge more than 30% of your limit on a Charge card
-do not dispute items on line
-request that these agencies stop selling your information to solicitors by opting out.
Go to optoutprescreen.com or call 888-567-8688. If you opt out on line, this prevent your
Information from being sold for 5 years. If you print out and mail the form, it is a permanent .
Michelle Baker-Loan Originator