If you have limited credit lines open, you may want to consider having a family member or friend add you as an authorized user to one of their cards. Although it will show that you are an authorized user, the entire credit history for this account will appear on your credit report. So, for example, if your mom has had a visa card for over a period of years and adds you as an authorized user, that account will now appear on your credit report with it’s entire history. Of course, you want to make sure that it is a clean credit history before doing this! And if your family member or friend has concerns they can always add you to the account without actually issuing you a card to use.

To increase your credit score you can also limit the number of credit inquiries that you have against you by limiting the amount of new credit applications you complete (stop applying for the credit cards that offer a free gift giveaway when you apply). You can also make sure that you don’t close old accounts because the length of your credit history plays an important role in credit scoring. A long established credit history is much better than a short patchy credit history.

How you utilize the available credit that you have will affect your credit score. Don’t max out your credit cards and don’t close credit card accounts after they are paid off. Always try to keep your credit card balances, or revolving credit, at 20-40 percent of the credit limit’s. The longer these accounts are open the better it will be for your credit scores too. The credit bureaus want to see an established length of credit history, not that you get a credit card pay it off, close it and then get another one and go through the same process again. Keep that first card and provide a long established credit history with an account that is much older and still open and available to use. Also, by leaving these accounts open it will give you more revolving credit available and help with your credit score too.

the following will analyze the five factors of what comprise your credit score. The five factors are as follows: 1. Payment history-35% of total credit score, 2. Outstanding credit balances-30% of total credit score, 3. Length of credit history-15%, 4. Inquiries-10%, and 5. Type of credit 10%

national credit bureaus collect information from creditors and provide reports to lenders. These reports include a summary of all of your credit accounts. Based on the information collected, each bureau, using an algorithm created by various vendors, also calculates a credit score for the borrower. Factors that can impact a credit score include: poor payment history approaching your credit limit short credit history too many credit applications too few credit accounts too many credit accounts past credit problems, such as late payments, can stay on your credit report for up to 7 years from the date the original payment should have been made. Bankruptcies can be reported for up to 10 years. Lenders do tend to give more weight to the most recent payment information. And no matter what your credit is like now, you can take steps to improve your credit for the future.

You would think that pay cash for everything shows that you are financially responsible. The best solution is to open small credit lines to establish a credit history. Non use of the accounts will still help you establish a rating.

If you pay cash, try saving your monthly statements for cable, electric, and cell phone. Most utilities will not provide payment histories so it helps if you save your statements. This will allow you to build up an alternative credit history.

The four main things that affect your credit score are: 1) payment history – whether or not you make your payments on time.2) account balances – on revolving accounts should be kept under 50% of the available credit limit. Under 30% is actually preferred.3) amount of accounts open – it is best to have about 5 accounts open at any given time. This number can be higher if it includes student loans, but it is always best not to have multiple credit cards open, especially if they carry balances.4) length of credit history

When you have limited or no credit one of the easiest ways to establish credit is to have a family member add you onto a credit card so that you can start to gain a credit history based on their good credit. Make sure that the credit card provider reports an authorized user to the credit company before doing this.

Another solution may be to get a co-signer, like an immediate family member that has good credit history and who would sign on the loan along with you. Of course, they should understand that they take the responsibility for paying if you don