Our mission today is to help you understand the TRUTH about why banks and credit bureaus profit off your low credit scores…and help you learn how to raise your credit score by 100 points. Though there’s no magic bullet to fix your credit, you CAN raise your credit score by 100 points quickly.
Many consumers make the mistake of underestimating how much money they can save by a modest increase in their credit score. Let’s say you’re buying a home for $200,000. A low credit score causes you to pay a 2% HIGHER interest rate, and that 2% ends up costing you in excess of $100,000 over the term of the loan. In other words, you’ll throw away over $100,000 just because your credit score was low.
Of course, many people will tell you that this doesn’t matter. They’ll tell you, “Oh, you’ll never stay in the home for the life of the loan, anyway! Plus, you can always ‘refinance’ later.” Rhetoric like this is perfectly designed to maximize profit for the banks and credit bureaus.
Based upon our 16 years of experience, we’ve found consumers rarely (if ever) improve their credit and refinance. The monthly payment gets all the attention, and consumers look for the lowest one possible. However, small monthly payments actually mean MORE interest paid over the term of the loan for the banks. That’s in their best interest!
As a result, it’s not uncommon for 100 points in a credit score to cost a consumer over $100,000 because of this mindset. Prioritizing the monthly payment makes more money for the banks in total interest charges over the life of the loan.
On the flipside, improving your credit score by as little as 100 points can put over $100,000 back in your pocket that you’d otherwise be giving freely to the bank. Yes, please!
So, what’s the fastest way to raise your credit score up to 100 points?
The answer to that question lies within the ANSWERS to these THREE questions:
1.) What is the HIGHEST SCORING credit you can ADD to your credit reports?
2.) What is the FASTEST way to ADD this type of credit to your credit reports?
3.) What impact will this have on your overall DEBT to CREDIT ratio?
Let’s get rolling!
What is the HIGHEST SCORING credit you can ADD to your credit reports?
Contrary to popular belief, the HIGHEST SCORING credit you can add to your credit report is any type of UNSECURED revolving credit account (please note: debit cards and prepaid cards do NOT count).
Many consumers believe car loans and home mortgages represent the highest scoring credit one can add. In our experience, this is simply NOT true. UNSECURED revolving credit accounts are the RISKIEST type of credit for the lender, and they’re easiest for the borrower to abuse. So, when they’re used properly, we’ve found them to be the HIGHEST SCORING.
A car loan or home mortgage is actually difficult to abuse; if you quit paying, the home will be foreclosed or the automobile repossessed. These loans are a lower risk for the lender, so they’ll be lower scoring compared to unsecured revolving credit accounts.
What’s the FASTEST way to ADD this type of credit to your credit report?
The fastest way to get this type of credit on your report is by obtaining what’s known as an “authorized user account.” This means that you’ll become a secondary account holder on someone else’s credit card.
First, you’ll need to determine who will be willing to place you as an authorized user on their account. For this to be MOST effective, you need to have the same last name and mailing address as the primary account holder. Otherwise, this technique will be limited in its impact. So, if you have a brother, sister, father, mother (or spouse) with your last name, living at your address, then talk with them and see if they’d be willing to help.
Ask them to add you onto their unsecured credit account with the highest credit limit, and you should be looking good in no time flat!
What impact will this have on your overall DEBT to CREDIT ratio?
Your debt to credit ratio is the relationship between the credit you can access and the debt you currently owe.
How is it calculated? Let’s say you have access to $5,000 worth of credit on the unsecured, revolving credit accounts listed on your credit report. You have a “high credit limit” of $5,000. Now, let’s say that you’re currently in $4,000 of debt on these accounts. Take $5,000 and divide it by $4,000; you have an 80% debt to credit ratio.
You want a debt to credit ratio of LESS than 30%. Ideally, 10% will give you the best results.
The majority of consumer credit scores suffer from a poor debt to credit ratio. Your debt to credit ratio is VITALLY important to your credit score, because it tells the story of how responsibly you’re using the credit you’ve already been granted.
Now, let’s say you took my previous advice, and you added another unsecured consumer credit account for an additional credit limit of $5,000.
Your high credit limit will instantly increase, going from $5,000 to $10,000. What happens to your debt to credit ratio? It drops dramatically; down from 80% to 40%! Your high credit limit doubled, but your debt stayed the same. This changes the story for the credit bureaus; you’re using the credit you’re allowed in a responsible manner.
These are the FASTEST ways we’ve seen clients improve their credit scores by up to 100 Points – guaranteed.
For more information please visit us at creditexperts.io and book an appointment today. We are Indianapolis’s only Full Service Credit Consulting Company, InCreditable Advisors, give us a call today and let us help you improve your credit at 317.202.1297 to schedule your appointment today.