Insider Techniques To Raise A Bad Credit Score Fast. . .
If there is one question I’m asked by consumers more than any other about credit, it is “I have bad credit. 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 your 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. In this article, we’ll discuss some additional inside techniques known by very few. In relation to just removing negative items, these are techniques which you can use even if you have no truly 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 mistaken belief I’ve been hearing for over 14 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. Part of that mindset is to think about credit repair in a much broader sense. "Credit Repair" isn't just removing negatives, it is also creating positives. 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 currently owe $2500 on those accounts, 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 them over time. This shows your true (long term) creditworthiness, 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 a not-so-good or bad credit score faster than paying off your bills in full each month. Of course, what do you do if you’re like most Americans and your debt to credit ratio is too high? What if you don't have bad credit, but your debt to credit ratio is just out of whack? For example: You have $10,000 in unsecured revolving accounts but you owe $8,500, thereby giving you an 85% debt to credit ratio. How can you bring it down without selling everything you own? The answer is a simple application of one little-known way to improve your credit profile…
SUB-PRIME MERCHANDISE CARDS The single most cost-effective (and powerful) tool for consumers to increase their high credit limits and decrease their debt to credit ratios 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, and most advisors in the credit repair industry don't even understand or use them, although they are powerful tools to improve a bad credit score. 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. Here’s how it works: the company will approve just about anyone, no matter if he has really bad credit, and give him a card, typically for $5,000 to $10,000, with no credit check and no cosigner. However, the card is only good for merchandise purchased through the company's website or catalogs, and the consumer is required to put down a deposit on whatever he purchases. After the deposit is paid, the remaining balance is financed on his card. For example: A person buys $1,000 worth of merchandise. His deposit may be $300, so he then finances $700 on his merchandise card. With a legitimate Sub-Prime Merchandise Card, his 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. This 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 (low debt to credit ratio) by building and showing potential lenders your creditworthiness. 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. Also, there have been companies which have abused the sub-prime merchandise card and taken advantage of consumers, so it is possible that regulators could place some limitations on their use, destroying their effectiveness in this credit-improving scenario. For this reason, we have set up a free 24 hr teleseminar to discuss this here: 20 Minute
Teleseminar: You may want to listen sooner rather than later if you think that an additional $5,000 or $10,000 in credit might help your credit repair efforts. And, by the way, use these cards gently. Use them as suggested above, to increase your credit lines and reduce your debt to credit ratio. Don't just use them to buy stuff! Finally, not
many people know about… ADVANCED CREDIT PROFILING This is a strategy which, while not complex in its basic form, can be taken to very complex levels. Even in its most basic form, it’s taken advantage of by very few. It involves strategically building your credit report in a way which creates a “profile” that closely fits the sought-after criteria of most lenders (as well as the overall credit scoring system). While many consumers will boast when they have 10, 20, 30 or even 50 thousand dollars worth of credit cards on their report, many of these same people don't have even one mortgage, automotive loan or lease, equipment loan or a even a line of credit with a local bank or credit union. They don't have bad credit, but they could have a much better credit score if they had some of these other forms of credit. These other forms of credit create a much more well-rounded credit profile for the consumer, because of the greater credit account diversity, and experience with multiple types of credit due to the various lines held. For example. a person with $50,000 in credit card limits does not represent near the credit experience as a person with the same $50,000 worth of credit cards, along with a mortgage, an automotive loan and an equipment lease. We have clients who have financed vehicles not because they had to (or even wanted to) but because they needed to, in order to create a credit profile that would position them in the future to secure the lowest possible rate on a mortgage when they applied and needed it. More complex forms of Advanced Credit Profiling involve subscribing to business and professional publications favored by affluent or semi-affluent people, and joining prestigious organizations. These would include magazines, newsletters, trade journals and national associations. The goal is to get one's name into the databases of these publications and organizations. Why? To get on highly targeted lists in order to receive select credit offers. Marketers of credit offers have found that simply renting names of consumers from the credit bureaus does not provide enough information about the person as a credit risk any more. Therefore, many marketers will rent a list from the credit bureau and then cross-reference this list against another list they have secured from a consumer source such as an affluent business or professional publication, trade journal or organization. By comparing the two lists, the marketers find the names contained on both lists. This provides them with one highly refined and targeted list of prospects to whom they can send their offer. This shortens and simplifies the process of securing a new quality account holder, thus lowering the overall account acquisition costs. When a consumer learns how to intentionally put himself into these databases to wind up on these refined lists, the credit building process is sped up exponentially. In the end, all of us need to remember that today our credit score is more important than it has ever been in the history of the credit reporting system. While credit miracles don’t happen overnight, you can create your own credit miracles by applying simple insider strategies consistently over time. Before you know it, you’re a proud member of the 700 Club. The “700+ Credit Score” club, that is! Our Credit Secrets Bible, in print for fourteen years and constantly revised, will teach you everything you need to know to develop a much-improved credit score.
CreditRepairForBadCredit.com is a project of Wealth Instead, LLC. The company was founded as a vehicle to market an Internet-based debt reduction system, although over time we have started to see it in broader terms around the idea of credit, debt, and wealth in general.
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