Having a strong FICO score (the credit score used by lenders to grant credit to consumers) is important for financial prosperity. It will determine what interest rate you will pay for your mortgage or even if you can qualify for one. Most of us find this process intimidating and confusing. Here are some proven ways that you can maximize your FICO score and start restoring and rebuilding your credit.

• Have a trusted family member or friend with excellent credit add you as an authorized user on a major credit card account. The secret to this technique is that you must have a trusting relationship with this person. You must trust that they will not default on the payments or it will hurt your score. They must also trust you as they will be legally responsible for any charges you make. I recommend giving them back the credit card and make an agreement that you will both honor. It is also important that the account be established at least a year (the longer the better) and they don’t carry a high balance on this card (or it will hurt your debt/income ratio). This technique has the power to increase your FICO score dramatically.
• Never use more than 25-30% of the available credit limit on your credit cards. For instance, if you have a credit limit of $3000, never go above $750-$1000.
• If you need to establish credit, open a secured credit card. This is a credit card that is backed by a bank account with a balance. Generally, the credit limit will equal the amount in the account. Just remember to always check and make sure that the credit card company reports to all 3 credit bureaus. Of course, all payments need to be made on time. You can find a list of secured credit cards at bankrate.com.
• Never close an old account. Part of your credit score is based on how long you have established credit. Therefore, if you close an older credit card (perhaps because you now have a card with a lower rate) you will decrease your FICO score!
• Intermittently use all of your credit cards so they will not become inactive and cancelled by the credit card company or not reported to the credit bureaus because of inactivity.
• Make all of your payments on time. One late payment (especially a mortgage payment) can decrease your FICO score by 50-100 points!
• Even if you pay all of your bills before the 30 day late period but after the due date you could be labeled a “slow payer” which will decrease your scores.
• If you are planning to get a loan in the next few months do not try to open any new accounts or get any new credit cards.
• The best “mix” for a strong FICO score is to have a mixture of trade lines. For instance, a mortgage, a car loan, perhaps a student loan and between 2-4 major credit cards. More or less than this can be viewed slightly negatively. (However, if you happen to have more than 4 credit cards do not close them.)

At Andorra Credit Repair Corporation our mission is to empower consumers to strengthen their credit scores through education as well as removing inaccurate, misleading, unverifiable information from the 3 major credit bureaus. We spend up to an hour with each client in a face to face evaluation (or telephone e valuation) where we will strategize and help you implement a plan to raise your FICO scores quickly. Then we will dispute all the negative items on your credit reports for you. 4 out of 5 credit reports contain errors or misleading information. Did you know that TransUnion, Equifax, and Experian can put anything on your report without doing any verification? The only time they have a responsibility to verify information is when you, the consumer initiates it. This is what we do on your behalf. We have a proven system to raise your scores quickly so you can save money on the interest rates you pay. We also have a 100% money back guarantee. We would be happy to answer any questions you might have. Call us for a consultation at (480) 219-9161!