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Every time you apply for credit and are turned down, you should get a letter in the mail explaining this and with that comes the right to a free credit report (been there, done that, many many times).
So take this letter and follow the instructions to get your free report. Challenge any negative info on there- just deny it. This means the credit info company has to verify the claim, which mostly never happens. So just on the first try you can expect things to improve.
Then do it again. And again And again And again And again And again,
and constantly stay on top of your business affairs in this way. Bad info will sometimes disappear, only to re-surface some time down the road. It's a game of Ping-Pong with no end. Sometimes you can use this "temporary supression" to obtain credit, when your profile "looks" cleaner.
After the initial effort, get yerself a couple of secured credit cards, and other lines which means putting down a deposit. Although this may not be necessary, as many companies will give out small amounts of unsecured credit (think 500 bux). Some will require a deposit but give more credit over that.
this will establish your credit and the more you use it, and pay it back timely, the better your "score" will be, and the more credit will be offered down the road.
Ideally one has 5 open lines of credit w/o being "maxed out", at least one year of history, no late payments etc, and let them earn a couple bux interest now and again.
Some good starter cards are from CAPITAL ONE, there is ORANGE, ORCHARD, some others- do internet search for "credit cards bad credit no credit"
Once you get started be careful and make all your applications on the same day- repeated apps. and refusals are 'point-killers'. And then be diligent and return to the field every 6 mos. only.
A mortgage would be great, these can be gotten easily for 'stated-income' situations (you just claim 'I make so-much' on the application, like w/ other credits- cards etc)
I state that I make a high 6 figure income because-
this income may come from outside of taxable sources and still count for credit!!!!!!!!
and I am bonded for that amount ( my guarantee) !!!!!!!
This 'income statement' provision is just for calculation purposes- the lenders cannot legally offer you more credit than you can afford, based on your application
this is also called 'self-certification'. If you believe it and admit to it, it's true.
Also (like w/ your cell phone) if you can get a co-signer w/ better credit, you will have access to better credit your self, and be awarded "good" cards and lines- so your own score will rise dramatically. Then, after a 6 months have passed, and your score is high, drop those "co-signed" lines, be removed from them, and establish your own w/ your new higher rank.
Be careful- while on the co-signers lines they are also responsible and you want to keep them right. Dont you actually spend any of that money, let them hold the cards or whatever, run their expenses through these accounts, for the sole purpose of adding to your "points".
Be responsible.
It's a game, play it by the rules and succeed.
Last edited by farmer_giles_of_ham : 01-25-2008 at 08:29 AM.
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