5 Steps To Become More Lendable – Are You Lendable Part 2
Part Two to five-step to becoming lendable. The most common codes are too many accounts with balances recent inquiries, the proportion of balances to credit limits is too high and the time since the most recent account opening is too short.
These codes are often not applicable or not to the degree in which the Bureau’s want you to think there are several ways to combat the codes and maximize your legibility.
Adverse account adjustments. This includes authorized user accounts or accounts that can easily be adjusted and removed to enhance your scores. If you are an authorized user on an account with a high balance, you can request to be removed as an authorized user and the debt will fall off of your credit report.
If you have limited credit or a high overall debt to credit ratio, adding an authorized user card with a low balance can help to broaden your credit profile. Be mindful that anything the primary borrower does with this account, high balance, late payment, etc will affect your report. So only add yourself as an authorized user to an account of someone you trust.
The Balance Of An Account
The Bureau’s make mistakes and so do the creditors. Keep track of your payments and balances and make sure everything is being reported correctly. The balance of an account can be reported incorrectly if you are not submitting your payments early. checking your credit can hurt.
Having excessive inquiries within a six-month time frame will hurt your scores and your likability credit lenders don’t like to see potential clients seeking credit from other sources. If you’re applying for a new account, limit your credit exposure prior to applying, auto dealerships can run your credit through multiple systems to find a good interest rate.
It is easier to explain auto loan inquiries to a lender, but they still don’t like to see it. Once you have your auto loan finalized, be sure to remove the inquiries.
Removing recent inquiries is important to keep your scores high on your report clear lenders have different expectations on how many inquiries are considered excessive. For some, it’s up to three inquiries within six months, and for others, it’s up to six inquiries within six months. Either way, don’t limit your possibilities with inquiries.
How to Remove inquiries
Check all three credit bureaus, creditors generally only pull one or two bureaus. So you may have a different amount of inquiries on each bureau. Write a letter to the credit bureau listing the inquiries you want to be removed. The Bureau’s legally have 30 to 45 days to respond to all disputes, and we’ll respond by saying when the inquiries have been removed.
A fraud alert may be placed on your credit file which is a very common practice and meant for your protection. You can easily remove a fraud alert by calling each bureau and telling them you want the fraud alert lifted.
When applying for business credit. It is especially important to remove the inquiries because they are in reference to business accounts and should not be on your personal credit report. If you’ve been denied by the Bureau’s to remove inquiries or simply don’t have the time to go through the dispute hassle, you can contract a professional credit repair company to dispute and remove the inquiries for you.
There are also basic tips for long-term lendability and maintaining a solid credit profile. We’ve included these below to help you stay lendable once you get there.
- Maintain positive payment history by paying all your bills on time or early and by making higher than the minimum required payments.
- Utilize a credit monitoring service to keep in tune with fluctuations and changes to your credit report. Everything is updated on a 30-day cycle. So once a year monitoring is not enough to stay current with your credit.
- On accounts with smaller limits try to pay them off monthly. If you have a store card with a $300 limit at a $100 balance, try to pay the balance in full. Showing an aggressive payment history will help encourage lenders to increase their limits and offer promotional benefits. Some lenders will tell you exactly what you need to do to boost your limit. Capital One will review your accounts automatically at three months in six months to determine if a credit line increase is due to you following the steps and they will be up to your limits automatically.
- Make good with all your lenders. If you had a previous charge off with a lender, it does not mean they will never work with you or lend to you again. If you do a Past Due balance, try to pay it off or make a repayment plan. Lenders will see that you’ve made an effort to maintain a positive working relationship and that can help to improve your long-term lend ability with that bank.
Now that you know how to make yourself more lendable, take the necessary action you need to take hand go get that money