Michael Petruccelli asks; What are some tips for giving your credit score a boost? (18)

Michael Petruccelli says;  Don’t consolidate your credit

I once worked with a mortgage adviser who would tell customers to consolidate all of their credit card debt into one credit card and cancel the other accounts. That’s bad advice. By closing cards, you shorten your credit history. And consolidating debt doesn’t remove it. It only shuffles it around.

But there’s an exception to this rule: If you’re paying ridiculously high interest on one credit card, transferring the balance to a lower-interest card will save you money. But keep both accounts open if there’s no annual fee.

Michael Petruccelli asks; What are some tips for giving your credit score a boost? (17)

Michael Petruccelli says;  Open a secured card

If you can’t qualify for a traditional credit card, open a secured one. Secured credit cards are backed by money you put into a deposit account, so they’re low risk to the lender and easier to get. You’ll boost your credit score by paying on time each month, and many creditors will allow you to later graduate to an unsecured card. And you’ll get your full deposit back.

Michael Petruccelli asks; What are some tips for giving your credit score a boost? (16)

Michael Petruccelli says;  Shop for credit fast

When you shop for new loans or credit cards, do it quickly. When the credit bureaus see several credit inquiries for an auto loan within 30 days, for example, they assume you’re comparison-shopping and lump all of the inquiries into one. Inquires make up 10 percent of your credit score – the fewer the better.

Michael Petruccelli asks; What are some tips for giving your credit score a boost? (15)

Michael Petruccelli says;  Apply for different types of credit

I’m a renter with two paid-on-time credit cards and no other loans. I should have great credit, right? Yes and no. While my credit score is fine, I’ve been denied credit twice because I don’t have a good credit mix. The types of credit you have makes up 10 percent of your score, and lenders like to see that you can handle loans that are both revolving (credit cards, for example) and installment (a mortagage or car loan).

If you only have a credit card, add a small personal loan to the mix – perhaps a signature loan from a credit union. Paid on time, blended credit boosts your score.

Michael Petruccelli asks; What are some tips for giving your credit score a boost? (14)

Michael Petruccelli says;  Use an old credit card

Credit card companies often stop reporting your account if you don’t use the card for several months or years. Dust off the card, use it to make a few small purchases, and the creditor will start reporting again. Doing so increases your available credit limit and your credit history length, since the old card is showing active again.

Michael Petruccelli asks; What are some tips for giving your credit score a boost? (13)

Michael Petruccelli says;  It’s called pay for delete, and here is a sample letter you can use:

Name of Collection Agency
Address of collection agency

Re: Collection Account for Original Creditor Account Number
Amount: $50.00

Dear Sir or Madam,

I am disputing the validity of the debt referred to above. I am not aware of the account number and you have not informed me of the existence of this account.

I am willing to pay this account IN FULL (or a settlement percentage, whichever is feasible) if you agree to immediately delete the account from the credit reporting agencies (namely Equifax, TransUnion and Experian) that you have reported to, and validated this account. My sole purpose is to get this item removed from my file. This letter should not be interpreted as recognition of the debt or acknowledgment of liability for the debt.

If you accept the terms of this agreement, the certified amount of $50 will be sent to your collection agency provided there is complete deletion of any reference to the debt from my file on all the credit bureaus that you have reported to, and the debt is validated. As the full amount demanded will be paid back, there should not be any waiting period to delete this item from the reporting bureaus.

Your agency should delete all information regarding the account from my credit files within 10 business days from the receipt of the payment, as mentioned in this agreement. The terms of this agreement will not be discussed with anyone but the original creditor. No third party will be informed if contacted and no acknowledgment of the debt, any kind of payment, or settlement will be discussed if I am contacted by the Reporting Agencies.

Following the acceptance of the agreement, please prepare a letter on your company letter head unambiguously agreeing to the aforementioned terms and conditions and have it signed by your agency’s authorized signatory. This letter will imply a legal contract, enforceable under my state law.

If I do not receive an approval letter within 15 days of your receipt of this letter, I will withdraw this offer.

Please communicate regarding this account to the address mentioned below.

Your Name
Your Address
State Zip Code