Companies that want you to lie about credit history or create a new credit identity can get you into legal trouble. Companies that provide “new” identifying information use stolen Social Security numbers, and if you use this number then you are committing fraud. Likewise using an Employee Identification Number or Credit Profile Number provided by these companies is a crime. Rather than committing fraud, take the steps below to improve credit on your own.
Everyone is entitled to one free credit report per year from each of the three credit reporting agencies. Your credit report contains the information used to compute your credit score. It can be obtained by visiting www.annualcreditreport.com(Opens in a new window) or by calling 1-877-322-8228. Your credit score won’t be included in the free report, but can be purchased at the same time your report is pulled for a small fee.
The scoring system wants to make sure you aren't overextended, but at the same time, they want to see that you do indeed use your credit. 30% of the available credit line seems to be the magic "balance vs. credit line" ratio to have. For example; if you have a Credit Card with a $10,000 credit line, make sure that never more than $3000 (even if you pay your account off in full each month). If your balances are higher than 30% of the available credit line, pay them down. Here is another thing you can try; ask your long time creditors if they will raise your credit line without checking your Credit Report. Tell them that you're shopping for a house and you can't afford to have any hits on your credit report. Many wont but some will.
Making your credit payments on time is one of the biggest contributing factors to your credit scores. Some banks offer payment reminders through their online banking portals that can send you an email or text message reminding you when a payment is due. You could also consider enrolling in automatic payments through your credit card and loan providers to have payments automatically debited from your bank account, but this only makes the minimum payment on your credit cards and does not help instill a sense of money management.