One sure way to raise your credit score is to dump your credit card debt or bury it into your mortgage. A consumer with tons of maxed-out credit cards is considered a high risk, regardless of their income or on-time payment record. It is possible to be a “sub-prime multi-millionaire.” A CEO with a national corporation recently had a major charge card canceled by Citibank for “revolving accounts too high” and “balances too high relative to credit lines.” This, despite an average charge volume of $25,000 per month to the Citibank card and a flawless payment history. The cardholder also has a mid-six figure income and an eight figure net worth. The high debt was largely attributed to VISA and MasterCard business cards co-signed by the CEO and to consumer credit cards offering 0% APRs. His credit score dipped to the low 600s. Three months after dumping about $90,000 in card debt, the credit card score rebounded to the mid 700s and is still rising. Bottom line: credit bureaus do not track income and assets, and high credit card debt is a real score killer, regardless of your wealth.
This week, a group named Your Credit Card Companies offered the following tips:
* Shop for a loan within a focused period of time.
* Pay bills on time.
* Check credit reports for accuracy.
* Pay off debt, don’t move it around.
* Contact a legitimate credit counselor for help with financial difficulties.
FICO scores can be ordered at “http://www.myfico.com”:http://www.myfico.com.