I am rebuilding my credit. Equifax is 632 and Transunion is 594. My scores were higher the end of October, but then I maxed out a $300 card. My Equifax was 651 and I was thrilled. Anyway, I'm learning here, so it's all good. My question - my mom has agreed to add me to her visa that has a 20k limit. She has a balance of 2k on it and have had the account for 10+ years. Her credit is great. While I am excited to see my score increase with me being added as an authorized user I cam concerned that my credit may bring hers down. Is this possible? My last late payment was 11 months ago. I am at the beginning of my credit rebuilding journey. Can my credit pull hers down? Thanks
One of the factors in building a great credit score is income with income being the most important of the two factors. If you have an income of $2k per month and a debt load of maybe $600 the i/d ratio is .33 but with that low level of income it will still be very difficult if not impossible to build a high credit score. On the other hand, if you have an income of $200k and a debt level of $66K you will still have the same I/D ratio but you can build much higher credit scores because you obviously have a much greater ability to pay it off quickly. Another factor is savings. Having a good savings account can also be a big factor in building credit. Many applications ask whether you have a savings account and if so how much money do you have in savings. Savings can be the deciding factor in granting credit. One of the things I do is buy and sell corporations. I buy a corporation by incorporating a new one with a good corporate name then start the credit using savings accounts to get loans from 3 different banks at the same time. Takes a minimum of $1,000 to do that since most banks won't make loans for less than that. The more money you can use the better. Some banks won't make loans for less than $1500 and some demand up to $2500. Whatever amount one decides to use, it must be the same for all 3 banks. The time one borrows the money for also must be the same for all 3 banks. A year is best then pay off all 3 in 12 weeks. The total cost will be under $100 that way. I can keep the net effective interest cost at about 4% with no problem. A $1,000 loan at 4% a year paid off in 12 weeks will cost me $10 times 3 loans costs me $30 to establish great credit at 3 banks. I don't even want them to report the credit for me so I never ask about that. Once the corp has those 3 banks for references getting one or more unsecured cards is easy. I buy a car for the corporation owend by my main corporation. Then my main corporation can be used as a credit reference for the new corporation. Once the second corporation pays the car off I buy it back and the new corporation becomes a credit reference for the first corporation. Each corporation has it's own sources of income. Once a corporation has aged for a couple of years, has income, a great credit score, a domain name and a web site it can be sold for an excellent profit. Corporations with those kinds of assets sell like hotcakes. Individuals can also use that same method to build personal credit provided they have at least a decent income, a good I/D ratio and no adverse listings on their credit. Get rid of the adverse credit, judgments or whatever is holding you down and getting great credit isn't the least bit hard to do. Just don't make the fatal mistakes of paying off a debt collector in hopes of improving your credit, filing bankruptcy or running to a debt consolidation company because if you do any of those three there is little you can do to improve your credit score by more than a few measly points if you can do it at all.
