I recentley attended a realesate seminar in FL. The methods involved had the focus on buying realestate in high volumes. Obviously as they described one would suffer credit strikes due to heavy inquires and new accounts. A section inside the course dealt with this. I wanted to share that proposed method and see if anybody had heard of it and does it sound like it would work:
1. Take 4 Zero balance and put them into rotation.
2. Begin to use Card # 1 at the beggining of a month and use the card for things that you would normally buy(groceries, gas, monthley bills, etc).
3. Then pay that card off immediatly during the grace period(i.e. no interest)
4. Put that card up and then use Card # 2 at the beggining of the next month, and charge the same normal items and bills you used the last month. The idea is keep it low( a couple hundred bucks, and that they are normal expenditures and nothting that would cause you to need to carry a balance.
5. Then use Card # 3 and then Card # 4 in sucession. Charging and paying the balance off each and every month PERIOD
6. After the 4th card is used and payed off, you then revert back to the 1st card and continue the cycle.
The teacher said that inside the formula's used to compute a credit score, a balance payoff has a heavy weight. I think we all know that one, but what he said about the rotation preplexed me:
He said that under this method you would after the rotation cycles thru the first time you would then be getting a balance payoff every month. He said this works because an account has to be dorment 3 months before a balance payoff is used in your score. You then charge a balance to the card the forth month and then pay it off at the end of that forth month. He said that you should see a increase as much as 20 points or so each month(after the first rotation and you are receiving a payoff every month). That is if your score is low, he said and I think it is reasonable to think that if it is higher it would have less of an effect.
Anyway, he said every body's scoring is different because everybody has different situations. But he said that he has been doing this for about 2 years and the method does help his score get boosted. Now keep in mind that he does have heavy inquires and new accounts so it may have a bigger effect on him because is is really having a lot of activity on his credit record.
Just thougts, and I was wondering if anybody has heard of this and does it sound like it would work.\
It does sound reasonable to me, but..............
