Repair Your Credit Using Different Types of Credit
Today we discuss the final factor involved in determining your credit score. The type(s) of credit you have on your file, your credit mix. This is important because creditors like to see that you're able to manage different types of responsibilities. Someone with a $50k mortgage would probably look better to creditors than someone with just $50k in credit cards.
This is a fairly simple concept. Look at your file. Do you have at least one of each type of credit account listed? Revolving accounts are easy to obtain. Your credit cards, department and gas cards fall into this category. Next, installment loans. The next two would be auto and mortgage loans.
A good mixture amount can be remembered with the 3-2-1 formula. Three revolving accounts, two installment accounts, and at least one mortgage. Let's see how we can obtain our goals. There are several financial institutions that cater to people with less than perfect credit. They issue credit to persons who have bad credit. Orchard is one such bank.
What if you can't even get a credit card for people with bad credit? All is not lost. Many of the same banks offer secured credit cards that report to the credit bureaus and appear on file just like the unsecured cards.
As for your installment accounts, this can be handled fairly easy also. If you have a car note, this is one for you already. What to do if you don't want to go into debt for a car just to have the installment added to your credit file? Obtain a secured savings loan. Go to your bank or credit union (they're more lenient) and place funds in a savings or cd. Then right after request a secured installment loan. Do this at two credit unions and you have completed this level of the credit repair accounts mixture.
Get professional assistance or do it yourself. Bad Credit Repair
posted by gcpdt @ 4:17 AM
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