| The credit crisis has left millions of consumers with lots | | | | the dark when it comes to ensuring their true credit |
| of questions regarding where they stand in the credit | | | | limits are being accurately reported on their credit |
| lending arena. Easy credit and nothing down | | | | reports. This of course impacts the credit score and |
| mortgages are a thing of the past. One of the most | | | | impacts what type of interest rate or loans a |
| important things you can do to ensure that you can | | | | consumer qualifies for. |
| qualify for a loan when you need to is to shoot for the | | | | American Express and HELOCS (Home Equity Lines |
| magic number. | | | | of Credit) are known for not reporting the accurate |
| What is the magic number? | | | | credit limits of an account. For example, the American |
| Your credit score can range from 300 to 850. Lenders | | | | Express green card does not have an actual credit |
| will usually consider you for a home loan or car loan | | | | limit so the limit reported on the credit report of a |
| with a credit score of 525 and up. However, due to | | | | consumer is actually the maximum amount that you |
| the recent credit crunch and the huge losses from the | | | | have ever spent on that card. So if all you have ever |
| sub prime market lenders have tightened their belts | | | | charged on your AMEX was $3,000, and you paid it in |
| and obtaining credit has become harder than ever | | | | full when the statement came and then you spend |
| before. | | | | another $3k the following month, the $3,000 limit |
| The ideal credit score is considered 720 and above. | | | | reported would show that you are using your card at |
| This score pretty much opens any and all doors for | | | | 100% of your credit limit. |
| you when it comes to getting approved for credit. | | | | How do you leverage the true credit limit reporting to |
| Keep in mind that just because you have a 720 credit | | | | your advantage? |
| score does not mean you may qualify for any type of | | | | You basically have the power to set your own credit |
| home loan or any amount. There are other factors to | | | | limit with AMEX on your credit reports. The question is |
| consider when it comes to qualifying for a home loan | | | | what's the percentage you want to shoot for on your |
| such as debt to income ratio. | | | | debt to credit limit ratio with AMEX? |
| If you don't have a 720 score, then the first step is to | | | | No more than 30%! So, if you know that you regularly |
| shoot for a 660. The 660 score range means you can | | | | charge let's say $3,000 per month on your AMEX then |
| qualify for most major credit cards. When applying for | | | | you want to make sure that the true credit limit |
| a home loan lenders pull a tri merge credit report and | | | | reporting for your AMEX account on your credit |
| consider the middle score when it comes to lending | | | | reports is $10,000 or more. Why? Because if your limit |
| approval. For example, your Equifax score is 670, | | | | reporting is $10,000 for AMEX and your charging $3k |
| Transunion 640, Experian 610 then the middle score | | | | monthly then you are right at 30%, therefore your |
| considered for lending qualification would be 640. | | | | score will boost tremendously! |
| One of the sure fire ways to increase your credit | | | | How do you set your own credit limit? |
| scores is to make sure your true credit limits are being | | | | To increase and leverage that AMEX credit limit higher |
| correctly reported. Credit limits showing on your | | | | on your credit report, you should use your AMEX card |
| personal credit profile have an important impact on | | | | and spend over $10,000 such as travelers checks or |
| your credit score because it reflects your true debt to | | | | something like a TV then pay it off when the |
| credit limit ratios. | | | | statement comes. Go back to spending $3,000 again |
| After numerous consumer complaints nationally one of | | | | like normal. Your AMEX credit reporting limit would |
| the largest creditors in the country finally decided to | | | | then increase to $10,000 as your limit and your regular |
| report the credit limits of its customers. Have any idea | | | | spending habit of $3,000 would be below 30%. |
| who the company is? It's Capital One, and because of | | | | You will need to reset your limit again in about 7-8 |
| this change many consumers credit scores increased. | | | | months so keep that in mind. This strategy alone can |
| Unfortunately, some creditors have not adopted this | | | | boost your credit scores 25 or more points! |
| and as a result millions of consumers are left out of | | | | |