Show Stability
Some credit scoring models—such as those used by mortgage lenders—also
look for stability in your history. They can consider things like how long
you’ve lived at your current address, and how long you’ve held
your current job. Some models also factor in whether you own or rent your
home.
You shouldn’t stay in a bad job or substandard living conditions
just to improve your stability score. But you may want to consider limiting
these sorts of changes right before you refinance your house or apply for
a large chunk of credit.
You also can use stability concerns to improve your credit score. For example,
when you look over your credit reports, you may notice that one or more of
your longtime satisfied creditors do not report information to a credit bureau.
Many creditors do not, including some (but not all) of the:
- department stores;
- gasoline credit card providers;
- travel and entertainment cards;
- local banks; and
- credit unions.
If you have a good history with one of these companies and you can convince
it to provide your account information and payment history to the credit bureaus,
it can have a positive effect on your credit scores. Give this creditor a
call.
Another way to show stability and increase potential lender confidence is
to open a savings account at your bank and keep putting at least some money
into it. This shows discipline, and it also shows that you have some funds
on hand to repay debts.
Next: Advanced Tactics |
