My Fleep:
Finance
Finance
Insider Techniques To Raise Your Credit Score... FAST! (Part 1 of 2)
If there is one question I'm asked by consumers more than
any other about credit, it's this "What's the fastest way
to raise my credit score?". My response is always the same
"How much do you want to raise it?"
If you wish to increase your score from 580 to 650 then
your strategy will be very different from someone wanting
to go from 670 to 725. Why? Because you starting point is
different which requires a different approach. Also, while
the removal of negative items from a report will almost
always lead to an increase in score, it's a basic concept
at best. Therefore, within this article, we'll discuss
somewhat inside techniques known by very few (since this is
what our company specializes in publishing).
In relation to just removing negative items, these are
techniques which you can use even if you have NO derogatory
information on your credit report. We'll start with the
most overlooked strategy first and that's your...
DEBT to CREDIT RATIO: The most fraudulent belief I've been
hearing for over 15 years is "I have excellent credit, I
pay all my bills off in full every month!" This is a false
belief for one to buy into and understanding your debt to
credit ratio holds the key to getting your "credit mindset"
right.
Your debt to credit ratio is your ratio of debt to total
available credit you have been extended (revolving accounts
only). For example. If you have $10,000 in total
unsecured revolving credit accounts and you're currently in
debt $2500, then your debt to credit ratio is 25%. Since
the main way lenders make money is by charging interest,
one of the elements of the credit scoring model is driven
by your ability to maintain balances and pay over time.
This shows your true (long term) credit worthiness which is
most profitable to lenders since they make money primarily
via interest and not annual fees.
Over the years we've discovered without question that
carrying the proper debt to credit ratio will boost your
score faster than paying off your bills in full each month.
I have argued with the Better Business Bureau on this
topic for and they still disagree (despite my sending them
proof from Fair Isaacs own website www.MyFico.com the
organization which invented the credit scoring software
used by credit bureaus).
Of course, what do you do if you're like most Americans and
your debt to credit ratio is too high? For example. You
have $10,000 in unsecured revolving accounts but you owe
$8500, thereby giving you an 85% debt to credit ratio. How
can you bring it down without selling everything you own?
The answer is simple and takes us to the next technique
which is...
SUB-PRIME MERCHANDISE CARDS: The single most cost effective
(and powerful) tool for consumers to increase their high
credit limit and decrease their debt to credit ratio is the
use of Sub-Prime Merchandise Cards which report to one of
more of the major credit bureaus.
Unfortunately, despite their immense benefits, these are
the most misunderstood cards in the credit industry. A
large portion of the misunderstanding is due to marketers
misrepresenting the cards and the growing number of
companies promoting them. When you learn how they work one
quickly understands why they have been the subject of much
misrepresentation.
A Sub-Prime Merchandise Card is nothing more than a card
attached to a line of credit which allows you to buy
merchandise from a specific vendor (usually the company
that sold you the card). The merchandise (in most cases)
will be purchased through a catalog or online mall.
Where the problem arises is that the cards are marketed
almost exclusively to the sub prime market via email,
telemarketing and direct mail etc. The reason for this is
they can advertise almost irresistible offers like "$5,000
Credit Card... GUARANTEED! No Credit Check! NO Cosigner!
You cannot be turned down!" or "Unsecured $10,000 Credit
Line! Everyone Approved!". I'm sure you get the idea...
While there are many companies which do this and are a
"shady at best", there are a few which do it legitimately
and it's the best kept secret to build your credit and
build it fast.
Here's how it works: the company approves anyone with a
pulse (literally) and gives them a card for $2,500 to
$12,500 with NO credit check and NO cosigner. However, the
card is only good for merchandise through their website or
catalogs and the consumer is required to put down a deposit
on whatever they purchase. After the deposit is paid, the
remaining balance is financed on the card.
For example. A person buys $1,000 worth of merchandise.
Their deposit is $300 so they then finance $700 on their
merchandise card and make payments. Sound like a scam? If
you say "Yes" like most people then you're missing the
point... big time.
With a legitimate Sub-Prime Merchandise Card your credit
line WILL be reported to at least one major credit bureau
(or more). This means if you get a $5,000 card and you
finance $500, on your credit report it will look like any
other credit card and will do three extremely important
things for you.
1.) It will increase your current "High Credit Limit" by
$5,000 almost overnight as the account "looks" like any
other unsecured revolving account.
2.) By carrying a small outstanding balance it will
positively impact your credit report by building and
showing potential lenders your credit worthiness.
3.) With a good payment history you are virtually
guaranteed to receive "legitimate" pre-approved credit
offers in the future due to other lenders renting your name
from the credit bureaus.
This technique is hard to beat for both cost and
effectiveness. Of course, the whole key is knowing exactly
which cards report to the credit bureau and offer the best
rates.
----------------------------------------------------
The "CREDIT SECRETS BIBLE" has been in print since 1994 and
is published by Consumer Publishing Group. For more
information on the "CREDIT SECRETS BIBLE" you may visit:
http://www.credit-secrets-bible.net
If there is one question I'm asked by consumers more than
any other about credit, it's this "What's the fastest way
to raise my credit score?". My response is always the same
"How much do you want to raise it?"
If you wish to increase your score from 580 to 650 then
your strategy will be very different from someone wanting
to go from 670 to 725. Why? Because you starting point is
different which requires a different approach. Also, while
the removal of negative items from a report will almost
always lead to an increase in score, it's a basic concept
at best. Therefore, within this article, we'll discuss
somewhat inside techniques known by very few (since this is
what our company specializes in publishing).
In relation to just removing negative items, these are
techniques which you can use even if you have NO derogatory
information on your credit report. We'll start with the
most overlooked strategy first and that's your...
DEBT to CREDIT RATIO: The most fraudulent belief I've been
hearing for over 15 years is "I have excellent credit, I
pay all my bills off in full every month!" This is a false
belief for one to buy into and understanding your debt to
credit ratio holds the key to getting your "credit mindset"
right.
Your debt to credit ratio is your ratio of debt to total
available credit you have been extended (revolving accounts
only). For example. If you have $10,000 in total
unsecured revolving credit accounts and you're currently in
debt $2500, then your debt to credit ratio is 25%. Since
the main way lenders make money is by charging interest,
one of the elements of the credit scoring model is driven
by your ability to maintain balances and pay over time.
This shows your true (long term) credit worthiness which is
most profitable to lenders since they make money primarily
via interest and not annual fees.
Over the years we've discovered without question that
carrying the proper debt to credit ratio will boost your
score faster than paying off your bills in full each month.
I have argued with the Better Business Bureau on this
topic for and they still disagree (despite my sending them
proof from Fair Isaacs own website www.MyFico.com the
organization which invented the credit scoring software
used by credit bureaus).
Of course, what do you do if you're like most Americans and
your debt to credit ratio is too high? For example. You
have $10,000 in unsecured revolving accounts but you owe
$8500, thereby giving you an 85% debt to credit ratio. How
can you bring it down without selling everything you own?
The answer is simple and takes us to the next technique
which is...
SUB-PRIME MERCHANDISE CARDS: The single most cost effective
(and powerful) tool for consumers to increase their high
credit limit and decrease their debt to credit ratio is the
use of Sub-Prime Merchandise Cards which report to one of
more of the major credit bureaus.
Unfortunately, despite their immense benefits, these are
the most misunderstood cards in the credit industry. A
large portion of the misunderstanding is due to marketers
misrepresenting the cards and the growing number of
companies promoting them. When you learn how they work one
quickly understands why they have been the subject of much
misrepresentation.
A Sub-Prime Merchandise Card is nothing more than a card
attached to a line of credit which allows you to buy
merchandise from a specific vendor (usually the company
that sold you the card). The merchandise (in most cases)
will be purchased through a catalog or online mall.
Where the problem arises is that the cards are marketed
almost exclusively to the sub prime market via email,
telemarketing and direct mail etc. The reason for this is
they can advertise almost irresistible offers like "$5,000
Credit Card... GUARANTEED! No Credit Check! NO Cosigner!
You cannot be turned down!" or "Unsecured $10,000 Credit
Line! Everyone Approved!". I'm sure you get the idea...
While there are many companies which do this and are a
"shady at best", there are a few which do it legitimately
and it's the best kept secret to build your credit and
build it fast.
Here's how it works: the company approves anyone with a
pulse (literally) and gives them a card for $2,500 to
$12,500 with NO credit check and NO cosigner. However, the
card is only good for merchandise through their website or
catalogs and the consumer is required to put down a deposit
on whatever they purchase. After the deposit is paid, the
remaining balance is financed on the card.
For example. A person buys $1,000 worth of merchandise.
Their deposit is $300 so they then finance $700 on their
merchandise card and make payments. Sound like a scam? If
you say "Yes" like most people then you're missing the
point... big time.
With a legitimate Sub-Prime Merchandise Card your credit
line WILL be reported to at least one major credit bureau
(or more). This means if you get a $5,000 card and you
finance $500, on your credit report it will look like any
other credit card and will do three extremely important
things for you.
1.) It will increase your current "High Credit Limit" by
$5,000 almost overnight as the account "looks" like any
other unsecured revolving account.
2.) By carrying a small outstanding balance it will
positively impact your credit report by building and
showing potential lenders your credit worthiness.
3.) With a good payment history you are virtually
guaranteed to receive "legitimate" pre-approved credit
offers in the future due to other lenders renting your name
from the credit bureaus.
This technique is hard to beat for both cost and
effectiveness. Of course, the whole key is knowing exactly
which cards report to the credit bureau and offer the best
rates.
----------------------------------------------------
The "CREDIT SECRETS BIBLE" has been in print since 1994 and
is published by Consumer Publishing Group. For more
information on the "CREDIT SECRETS BIBLE" you may visit:
http://www.credit-secrets-bible.net