Piggybacking For A Higher Credit Score

 When CRUSA's  CEO Yuntwine English and CFO Andy Snyder met their motives were that of the same "Helping Those Who Feel There Is No Hope". Coming from two different worlds and culture the two decided that if they pull together and put their heads together they can reach out and help alot of people nationwide. Setting up a company to do credit restoration is the one way to help those people who needs better credit scores which equals to lower interest and zero down in most cases. But also to educate those who comes through their programs on how and what to use credit for. One service they have in place is the Authorized User Service that boost your scores up on average 45-100 points per account.

They add you as an authorized user to one of the tradelines that has the available limit and positive payment history. The issuing bank i.e. (Bank of America, Chase, Discover, Wells Fargo, CITI) then reports the positive credit history including the age of the account, the limit to the tradeline and the positive payment history to Experian, TransUnion and Equifax. The payment history, age, and limit have direct impact on the FICO credit score module which impacts your utilization ratio, average credit age and payment history. To further understand how it may impact your score please refer to graph below:

FICO Score ranges from 350 – 850, where 350 being the lowest credit score and 850 being the highest:

• 350-579 – Poor
• 580-619 – Below Average        
• 620-659 - Average
• 660-719 – Good
• 720-850 – Excellent

Now let take a look at how Experian, Equifax and TransUnion calculate your score:

Now that you have a basic understanding what your credit score consists of, imagine what will happen when CRUSA add $25,000 of available credit with perfect payment history of 10 years to your credit file. Your credit score will sky rock almost overnight! By adding this history to your file, it will have an impact on your 35% payment history, 30% amounts owed and 15% length of history metrics and raises your credit score.
Credit Restoration USA rents out such lines of credit, called tradelines. Once they add your name to a tradeline, or usually several tradelines, you inherit the benefit of that account as if you were the owner from the date that account was opened.

How do you know how many tradeline(s) to buy?
To achieve maximum results they recommend to start with a minimum of 2-3 tradelines per file with similar limits and age.

                                               For Information on tradelines. Click Here

4 Ways Your Credit Scores Can Empower You

The members of the credit elite — consumers who reside at the top of the scoring ladder — are no strangers to the hard work having good credit requires. Maintaining good or excellent credit can help you qualify for the best financial offers. Here are four ways this can pay off and might leave you feeling financially empowered.

1. Credit Card Perks & Rewards

When you have good credit scores, you open up the doors to new credit opportunities. For example, you may now be eligible for some of the more premiere credit cards on the market that offer great rewards. (You can read more about reward credit cards here.) Before you apply for a new card, it’s a good idea to verify where your credit currently stands. You can see two of your credit scores for free, updated every 14 days, on Credit.com.

2. Negotiation Power

As an attractive borrower, you can expect to wield greater negotiation power in your financial dealings. For example, an Experian analysis found that “85% of the rental applicant population is in one of the three lowest Vantage Score credit ranges (501 to 799), compared with a national average of only 64%.” You may be able to use your excellent credit score to distinguish yourself from the competition and negotiate better terms and conditions in several situations.

3. Lower Insurance Premiums

Insurance is the business of risk, and the premium you pay is based on several factors, including age, city of residence and past behavior. Based on the latter, it’s no surprise that many providers look at your credit to set insurance rates (California, Hawaii and Massachusetts have laws prohibiting this practice). Consumers with excellent credit may been seen as a lower risk and may be rewarded with lower auto, homeowner or health insurance rates.

4. Prime Interest Rates

Borrowing money can be easier with high credit scores. A stellar ranking may qualify you for some of the best available mortgage rates, auto loans and revolving APR. Depending on the value and length of the loan, excellent credit could help save you thousands of dollars over time.

Accounts That Builds Credit

Building good credit isn’t an exact science. It requires a combination of patience and strategy, which may sound vague, but you’re in luck: the credit bureaus provide an overview of the latter. Consider the following accounts as you carve a path in the world of credit, as the right mix can help you build a stronger credit profile.

Revolving Accounts
Revolving credit is a line of credit with balances that can carry from month to month and usually have a different payment each month, depending on your current balance. These accounts don’t close when your balance reaches zero, either.
Credit cards are the most common type of revolving account. This can include a card issued by a bank or credit union, as well as one from a retail store. These cards affect your credit in a few ways, including your payment history (paying your balance on time) and debt utilization (how much debt you have vs. your credit limit).
If you haven’t had a credit card in the past, you may have trouble getting approved for a card on your own. But there are still options, which will help you build credit so you can consider a different type of credit card in the future. These are two of those options.

1. Be an Authorized User: Benefitting from someone else’s credit is possible when you are an authorized user. College students often do this with a parent or guardian so they can build credit. Once a user is added to an account, they’ll receive a personal card and will be tied to that line of credit. Authorized users also benefit from the established credit history of the original user and (ideally) timely payments. Keep in mind that the authorized user can also affect the original users credit, which can be harmful if they don’t pay their bills on time or drive up their debt utilization.
2. Get a Secure Credit Card: Like a traditional credit card, a secured credit card appears on your reports and can help build your score. Unlike a credit card, there is no credit “line” or “limit.” However, to use the card, you must pre-load it with funds and can only charge up to that amount.

Fixed Accounts
Fixed accounts are debts that are paid off in equal amounts each month and typically close after they reach a zero balance. These are three examples of installment accounts.

1. Student Loans: Building your credit with education is possible thanks to student loans. If you are unable to pay for the education to get a degree, student loans — which come with a fixed repayment plan — can provide funding. Before you take out a student loan, make sure you understand the repayment expectations. You may also consider reading our free e-book, Student’s Guide to Credit.
2. Mortgages: If you are able to make the payments, home ownership could help you take your credit score to the next level. A 30-year fixed mortgage is a big commitment, but it’s also credit score gold (if you can maintain good repayment history, of course). You may want to talk with a financial planner about your options first to make sure you aren’t taking on more than your finances can handle.Putting down roots can be an effective way to grow your score.
3. Auto Loans: If you’re in the market for a new car, auto financing has the power to boost your credit score as you hit the road. You can even add to your auto loan benefits by finding an affordable car with good ratings and fuel economy.

Sources That Can Potentially Harm Your Score
While these accounts aren’t typically going to be reported to credit bureaus and can’t help improve your scores, they can harm your scores if something goes wrong.

• Rent: The average landlord doesn’t report tenant accounts to the credit bureaus, but that doesn’t mean it isn’t possible. If you’re behind on rent, talk to your landlord about making a change for the better.
• Utilities: Electricity, water and gas are necessities, but it may be a good idea to contact your service providers and ask about their reporting policies.
• Phone Service: Cell providers often look at a version of your credit report before issuing a contract, but most do not report account details to the credit bureaus.

These are just some of the types of accounts that can help you build a strong credit profile. Having a variety of these accounts can benefit you, but that doesn’t mean you should take out a line of credit just to increase the types of accounts you have appearing on your history.

Start building good credit in your 20s

When you're a carefree twenty something with few financial responsibilities, building good credit may be the last thing on your mind. You may think you will not have to worry about your credit score until you start thinking about making large financial decisions like buying a home, but it takes a long time to fix a bad score. Planning ahead is the best way to ensure your ability to make these large purchases in the future. Well that is what was in the minds of Credit Restoration USA Founders Yuntwine English and Andy Snyder. The two plans to help teens establish great credit and teach them how to keep it that way.
Forbes contributor Alexandra Talty spoke with finance experts about why it is vital to build good credit in your twenties."It's imperative to understand that an 'I'll fix it later strategy' is not a good one and it could significantly impact your quality of life in the future," English said. "Fixing a credit score can be a tedious process and can prolong your goals and dreams."
Snyder, Entrepreneur and Motivational Speaker, explained to English that most young adults are perfectly capable of maintaining a good credit score. Mistakes are often made from disorganization rather than an inability to pay. In addition, many young people simply lack the knowledge of what factors can make or break a credit score. Educating yourself on how to build good credit is the first step to actually doing it. As U.S. News and World Report emphasized, this is the only time in your life you have a completely clean credit slate. It is your one and only chance to start from scratch, and it is important to seize that opportunity by being as financially responsible as possible.

Credit cards are not just for adults anymore—in fact, one third of all American teenagers are cardholders. However, because it is so easy to get into financial trouble with that little piece of plastic, it is very important to learn how to use it before ever uttering those first magic words: “charge it!”

       

How to build good credit in your twenties
The number one way to build good credit is to make your credit card payments on time. Late payments can severely hurt your score, so make sure not to overspend. Even more, make sure you remember make the payments. Set reminders or set up automatic payments. You don't want to hurt your score by simply forgetting to make a payment. And keep a Credit Advisor close just in case.

"Don't buy things you can't afford and make your payments and pay off your loans on time."

Liz Weston, author of "Deal with your Debt: Free Yourself from What You Owe" told consumer advice website Clark Howard that young adults should spend as if they are broke college students for a little while after starting their first jobs. Doing so will help you build up savings and figure out about how much you will need to spend per month on necessities.
U.S. News and World Report also suggested regularly checking your credit report. Not only will this help you realize how your actions can result in an increase or decrease to your score, but it will also help you catch any errors or signs of fraud. As explained by the Federal Trade Commission, each of the three major credit bureaus is required by the Fair Credit Reporting Act to give you one free credit report per year.
In the end, it is all about being smart, organized and responsible. Don't buy things you can't afford and make your payments and pay off your loans on time. Yuntwine English did say, however, that one type of debt you shouldn't focus on paying off too quickly is your student loans because they generally have low interest rates. While you should do what you can to make those payments on time, it might be better to focus on building up savings, saving for retirement and paying off other debt.