Credit Report Repair Tip - Understanding Credit Length
Welcome to today's tip.
Length of your credit file.
More specifically, length of time accounts have been on your file.
The concept is fairly simple.
The longer an account has been on your file, the longer you've been managing your credit (hopefully wisely).
That's why you throw off red flags if you're say 35yrs old with no credit.
Eighteen, maybe a potential creditor can understand because they're just starting out in life.
But otherwise, you're 35 and no credit, what have you been doing all this time.
OK, lets say for some strange reason you no or very little credit history, here's a possible solution.
Piggy Backing.
This method helps to add accounts with years of payment histories to your credit file, thereby helping your credit score.
Of course this assumes that the history you'll be obtaining is a good history.
Wouldn't do much good in adding a history with multiple 30 days late payments.
If you must use the account, be sure the delinquent marks are at least 18-24 months old.
Anything less will hurt your score more.
This is how the technique works.
Find someone , an Aunt, brother, etc.
, to add you to their account as an authorized user or secondary card holder.
In order for this to work, the application must request your SSN#.
If it doesn't, then the history of that account may not transfer to your credit file.
This is one of the strategies undercover law enforcement agencies use to make their agents' records appear longer (in time) than they actually are.
One other thing to watch out for when doing this tactic.
Make sure you're not listed on the account as a 'joint user' or anything similar.
The difference is major.
An authorized user is allowed to use the card and gets the account history added to their file.
A joint user has the same usage privileges, but is also responsible the debt.
A creditor can attempt to collect from you if they are unable to collect from the original card holder.
So be very careful.
Note this strategy may not be as effective for long, seems the fall out from the subprime real estate financing may cause this tactic to become less effective
Length of your credit file.
More specifically, length of time accounts have been on your file.
The concept is fairly simple.
The longer an account has been on your file, the longer you've been managing your credit (hopefully wisely).
That's why you throw off red flags if you're say 35yrs old with no credit.
Eighteen, maybe a potential creditor can understand because they're just starting out in life.
But otherwise, you're 35 and no credit, what have you been doing all this time.
OK, lets say for some strange reason you no or very little credit history, here's a possible solution.
Piggy Backing.
This method helps to add accounts with years of payment histories to your credit file, thereby helping your credit score.
Of course this assumes that the history you'll be obtaining is a good history.
Wouldn't do much good in adding a history with multiple 30 days late payments.
If you must use the account, be sure the delinquent marks are at least 18-24 months old.
Anything less will hurt your score more.
This is how the technique works.
Find someone , an Aunt, brother, etc.
, to add you to their account as an authorized user or secondary card holder.
In order for this to work, the application must request your SSN#.
If it doesn't, then the history of that account may not transfer to your credit file.
This is one of the strategies undercover law enforcement agencies use to make their agents' records appear longer (in time) than they actually are.
One other thing to watch out for when doing this tactic.
Make sure you're not listed on the account as a 'joint user' or anything similar.
The difference is major.
An authorized user is allowed to use the card and gets the account history added to their file.
A joint user has the same usage privileges, but is also responsible the debt.
A creditor can attempt to collect from you if they are unable to collect from the original card holder.
So be very careful.
Note this strategy may not be as effective for long, seems the fall out from the subprime real estate financing may cause this tactic to become less effective
Source...