Monitoring Your Credit
Most credit monitoring sites will provide an overview of what factors are impacting your credit scores. A tri-merge credit report will list “codes” that the credit bureaus list along with your credit scores to show what is making the biggest impact in the factoring of your score.
The most common codes are: too many accounts with balances, recent inquiries, proportion of balances to credit limits is too high, and time since most recent account opening is too short.
These codes are often not applicable, or not to the degree in which the bureaus want you to think. There are several ways to combat the codes, and maximize your lendability.
Adverse Adjustments
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 that 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.
Mistakes
The bureaus 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.
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