Wednesday, May 26, 2010

Will this increase my credit score?

If I am added to my grandmother%26#039;s Jcpenny card that that is in good standing as a joint user? Will this increase my score. I need a 50 point increase in my score to get a home loan. My goal is November. I%26#039;ve already raised my score 64 points this year. I just need that next boost! Please help.

Will this increase my credit score?

In short, there isn%26#039;t much you can do in such a short period of time to bring your score up to where you want it. A couple of points, though.

First, do not get involved with your grandmothers JC Penny card. The best thing to do is keep your credit independent of another person unless you are married. No joint accounts.

Some people might also suggest getting another credit card. This is a bad idea for a couple of reasons. First, just applying for the card will trigger a credit check on the part of the credit card company which will bring your score DOWN a few points. Then, if you don%26#039;t actually get the card, it stays down. Second, if you get the card, it could take a few weeks to get the card and many companies will not start reporting your score until you have a balance. This could take a few months. The fact that you have a revolving credit line with a balance, no matter how small, could potentially bring the score down.

The best thing you can do is tend to any bad debts you have on your account and pay down a few other debts. Even this, though, may not increase it enough by November. It just depends on what is on your report.

You could also try a different lender. Some lenders require a minimum score to get the good rates (which is what I assume you are trying to do), but there are others that aren%26#039;t as concerned about this. The disadvantage here is that the rates are usually quite higher. A score as low at 600 is good enough for some lenders. Anything lower and you shouldn%26#039;t even bother trying to buy a home.

Here%26#039;s what I suggest. Contact a broker and have them find a lender that will work with your current circumstances. Tell them you want a 2 year ARM (Adjustable Rate Mortgage). This will get you the best rate for your score. Once you get the home your credit score will shoot up quite quickly (3-4 months) because mortgages score REALLY well. Keep paying on time and after two years, refinance on a 30 year fixed. This will not only secure you a lower rate, but your equity earned through principal and appreciation would be enough that you could potentially walk away with cash in your pocket at closing! In short, lower payments and cash in your pocket. Such a sweet deal!

Will this increase my credit score?

If your Grandmothers card has a long and good payment history and she adds you as a joint signer or co-signer, then yes it will help your score.

Will this increase my credit score?

It depends on which credit reporting agency JCPenny reports to. As of next month, one credit reporting agency will not factor in accounts of authorized users. The two other companies are phasing out the practice in September 2008. It may help if you act quickly, but it shouldn%26#039;t hurt your score if she has a good payment history and the account has been open for a long time

Will this increase my credit score?

If you are a joint, it might help but not that much. If you are just authorized, it won%26#039;t count at all -- the rules have changed on that.

I REALLY hate to suggest this because I personally think it is a bad idea to have an excess number of credit cards, but getting a new Visa or Mastercard would increase your score about 15 to 25 points, PROVIDED you don%26#039;t charge anything on it (or increase the balances on other cards). The hit for the credit inquiry would rebound before November.

Of course, the best way to improve your score, is to pay all your bills on time.

Will this increase my credit score?

It will as long as she adds you as a co owner, not just as an authorized signer. A joint owner option however is not available for american express issued cards. You can be an authorized signer until September, b/c that is when Fair Isaac is changing it%26#039;s model so that auth signers don%26#039;t have those credit cards count towards their good( or bad) credit. There is obviously more to this story though. To continue to increase your score make sure you are paying every bill before it is due, that the outstanding debt on any revolving credit line is less than 33% of the total that you can borrow(preferably even less than that), and that if you can%26#039;t get your total owed on credit cards lower than that 33% you may want to open a new card and do a balance transfer to get you under that mark. Again, there is more to it than that, but hopefully this helps.

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