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business Friday 28 January 2022
How to score points in the credit game

By BEV O’SHEA sumer finance company
of NerdWallet that issues credit cards
Credit scoring can feel like across a variety of indus-
a frustrating game — falls tries. He says Synchrony
can be sudden and swift, uses VantageScore 4.0 as
and climbing is a slow slog. part of its decision making
In reality, “all scoring mod- and may also consider oth-
els and lenders are aim- er factors, such as banking
ing to do the same thing, activity, customer history
which is to minimize risk and cell phone payments.
and things like missing pay- Store credit cards tend to
ments, high balances,” carry high interest rates,
says Jeff Richardson, senior so try to pay in full every
vice president of marketing month or finish a 0% pro-
and communications for motion plan well before it
VantageScore, one of the ends.
two leading credit scoring SECURED CREDIT CARDS: As
companies. their name implies, secured
The traditional advice of credit cards are secured by
paying on time and keep- a deposit with the issuing
ing balances low will even- bank. Your credit limit is typ-
tually result in decent cred- ically equal to your deposit.
it. But you can speed it up. As with any other credit
CHECK YOUR CREDIT Credit cards as seen Thursday, July 1, 2021, in Orlando, Fla. card, it’s best to keep your
To start, take a look at your Associated Press credit utilization well under
credit reports by using An- it at once — credit checks your spending stays about radar or to rehabilitate a 30%.
nualCreditReport.com. can nick your score. the same, the credit limits damaged score. CREDIT-BUILDER LOANS:
Check to see that the in- — Letting card balances on the new cards will re- AUTHORIZED USER: If you These turn traditional loans
formation is accurate, es- stay above 30% of the limit duce your overall credit uti- have a friend or relative upside down. Instead of
pecially for addresses you — credit utilization, or the lization. And if your card is with a long credit history, getting a lump sum at the
don’t recognize, since that portion of your limit you lost or stolen, you still have a high score and relatively beginning and then pay-
can suggest fraudulent have in use, has a major access to credit. high credit limits, ask if they ing it back, you make pay-
accounts or same-name impact on scores. You can move credit card are willing to add you as an ments and get the lump
mix-ups. Also make sure While paying down bal- debt to a personal loan or authorized user. Authorized sum at the end of the loan
account numbers and ac- ances is a good idea, it’s even a 401(k) loan, essen- user status allows addition- term.
tivity are what you expect. not always realistic. tially making it disappear al good data to your credit CO-SIGNED CREDIT: Some
You can dispute errors, and BE STRATEGIC from credit utilization cal- history, such as on-time lenders will approve you
the change in score after a If you’re whittling down culations. But if you have payments, credit age and for a loan if someone with
successful dispute could be credit card balances, be not addressed the circum- low credit utilization. Au- stronger credit co-signs the
significant. strategic. The number of stances that led to the thorized user status is most loan. It can help credit even
AVOID COSTLY MISSTEPS cards with balances influ- high balances, a new loan powerful for people who if the primary borrower was
Next, avoid doing things ences credit scores, says could be a step deeper have no credit report or a never expected to pay (as
that work against building credit expert John Ulzheim- into debt. thin file. Its impact can be with parents buying their
your credit. These include: er. The “snowball method” ADD POSITIVE INFORMA- felt as soon as it’s reported child a car). However, both
— Paying late — the im- of debt repayment focuses TION to the credit bureaus. signers are fully on the hook
pact is large and lasting. on wiping out your smallest Credit slip-ups can hurt, but STORE CREDIT CARD: Retail for the loan, and the loan
— Closing credit cards — balances first. adding positive information credit cards typically have could limit the co-signer’s
it can reduce your overall Relatedly, if you have only to your credit reports can more flexibility in approv- borrowing power. If the pri-
credit limit and the length one credit card, Ulzheimer help counteract the dam- ing applications, says Max mary borrower doesn’t pay
of your credit history. says adding a card or two age. There are at least five Axler, deputy chief credit or pays late, the co-signer’s
— Applying for a lot of cred- could be useful. Assuming ways to get on the credit officer of Synchrony, a con- credit is on the line.q

Lowe’s teams up with Petco to offer

pet supplies, services

By DEE-ANN DURBIN centers by the end of 2,200 stores in the U.S. and
AP Business Writer March, the company said. Canada.
Lowe’s is teaming up with The Petco mini stores will “For many of our custom-
Petco to offer pet depart- offer food as well as pet ers, their pets and their
ments within its stores, bet- services, including vac- homes top the list of things
ting that customers want cination clinics. Mobile that matter most, espe-
cans of dog food along grooming services will also cially after two years spent
with their cans of paint. be offered. mostly together within the
The first Lowe’s with a Pet- The is the first store-within- same four walls,” said Bill
co is expected to open in a-store pairing for both Boltz, Lowe’s executive Shoppers walk in the lot of a Lowe’s home improvement store
February in Alamo Ranch, Lowe’s and San Diego- vice president of merchan- in Philadelphia, Wednesday, Nov. 17, 2021.
Texas. Fourteen additional based Petco. Petco oper- dising. Associated Press
Lowe’s locations in Texas, ates more than 1,500 stores The move could set Lowe’s food, and help it com- which also sell pet food
North Carolina and South in the U.S., Mexico and apart from rival Home De- pete with stores like Men- and home improvement
Carolina will get Petco Puerto Rico. Lowe’s has pot, which doesn’t sell pet ards and Tractor Supply, products.q