Length of Credit History 15% – Part 2
Most loop holes one tends to find when trying to maximize their positive credit end up being loop holes of fire and trickery that tend to leave you scorched when going through them. There are, however, a few “they” haven’t gotten around to reverse on us yet. Three of them happen to be located in the length of credit history section of your credit score. The question is, how can I gain more credit history without time just slipping away and my credit score crawling up at snail’s pace?
First of all, and I can’t stress this enough, please don’t exercise these options without consulting with us. One positive adjustment in one of these sections of the credit score can often effect multiple other areas in each unique circumstance. To begin, if your length of credit history is calculated by the average time on open active accounts, you can close a revolving account assuming you have more than one and the one you are closing has less credit history than your average (once again the math has to be done because your payment history, amounts owed and types of credit will also be effected when doing this). Another option would be to inherit a revolving account from someone close to you, effectively photocopying their trade line on to your report (there are many pros and cons to this so ask if you want more information). Lastly, if there is a deferred student loan available (or many), it is feasible to remove the oldest and most affordable out of deferment and gain credit history from the very beginning when the account was opened (largest warning on this is increasing the DTI and monthly financial responsibility).
Although this all might seem a walk in the park, the algorithms that calculate the scores are very complex and unforgiving, so this credit tip is only for our use in very specific circumstances. Just don’t forget to send those troubled clients on over to firstname.lastname@example.org or please use your URL LINK.