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Improve Credit Score - 2 Tips

An effective method to improve your credit score is to have an open unsecured mastercard or visa. This card should carry a monthly balance of about 10% of your credit limit.
If your credit limit is $1,500 then you want to keep the balance at $150. This will show the credit bureaus two things:
1. You use credit.
2. You have a good ratio of available credit to debt.
This means you have available credit that is not being used. The credit bureaus place a large emphasis on your available credit to debt when they calculate your credit score.
By showing you have credit that is not being used; your score will get a bump. This method is most effective with a revolving line of unsecured credit.
If you have trouble getting approved for new lines of credit, then consider being added as an authorized user. Find a friend or relative with good credit and ask them to add you as an authorized user to their credit card account.
This is commonly referred to as piggyback credit. There have been recent reports that the credit bureaus are no longer going to give any credit score benefits to an authorized user.
However because of the size of the credit bureaus and how difficult it is to change credit scoring between all three credit bureaus this change will take time to implement. It is estimated that authorized user's will still receive a benefit for the next 6-8 years.
If you choose this route then make sure that you trust the credit card account holder and their financial position. If this account goes delinquent or gets behind it will hurt your score.
For you to be added as an authorized user, the account holder needs to call the credit card issuer and request you to be added as an authorized user. This can all be accomplished over the phone.
The credit card issuer then sends a copy of the credit card to your home with your name on it. I suggest returning this copy of the credit card to the account holder.
All the details on the account will then be reported on your credit and the account holders' credit. This is an opportunity for your credit to reflect on time payments and available credit.
It is in the works to discount this method as a way to build credit. However right now it works and it's very cheap and easy.

Article Source: http://articles.yournetguru.com

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