Your debt ratio makes up about 30% of your score. If you divide
your existing credit card balances by the total amount of credit
available to you, you can get an idea of your debt ratio. While this may be an oversimplified calculation, it
does demonstrate one overlooked area of your credit report which is
easily manipulated.
Use any or all 5 of these strategies to push your debt ratio into a more favorable position and watch your credit score climb.
1. Increase your credit limits
- Call any lender with whom you've made prompt payments for the past 6
months and ask for a credit limit increase. Repeat this process every 6
months.
2. Reactivate old accounts - Most lenders will
deactivate your credit card if it goes unused for 3-6 months. Inactive
card limits are not counted towards your debt ratio. Simply use your
card to make a small purchase once every 3-6 months to keep it active.
3. Apply for a new credit card
- By adding a card you are adding to your available credit without
adding to your balance. The larger the limit the better for your debt
ratio. Click here if you need to add a credit card with a $5,000.00 or $10,000.00 limit to quickly and legally establish a credit history and drop your debt ratio.
4. Become an Authorized User - It normally takes
some time to build a large available credit limit with most lenders.
You can take a short cut and request a friend or family member add you
as an authorized user to their account. Make sure they make their
payments on time first. You get the benefit of their credit history and
limit without the responsibility of making payments.
5. Pay down your balances
- If you have the money, try paying down your existing balances to
under 30% of your total available debt for a quick credit score
increase.
Leave your comments below.
Best,
Brian Diez
PS: Just click here for your FREE cd, FREE ebook, and FREE coaching call with me!
PPS: Ready to get the credit score you deserve? Click here to schedule your free credit review.
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