I am going to be sharing with you the top seven ways to increase your credit score no matter where your credit sits currently. Your credit matters, so listen up!
Today we’re going to talk about seven ways to increase your credit score. Some of these are very, very basic, but some of these are very important to be able to … and some of these things you may not have even thought about.
But I want to make sure that I give you the top seven ways to actually increase your credit score. Some of them, they’re actually reverse psychology. So let’s get right into it.
The first way that you can increase your credit score is to challenge negatives. Okay? If the information is inaccurate or you believe the information is incorrect on your credit report …
Well, the first thing we want to do is we wanna check our credit report. Right? We want to make sure that everything looks like it’s from you.
If there’s information on there like late payments, or collections, or bankruptcy, it’s human error. Things can happen.
Guys, if you find something that’s on your credit report that is absolutely not supposed to be there and it looks inaccurate to you, you can challenge the information.
Now I’m gonna give you a little bit of a tip here is you can legally challenge any information you want on your credit report. Okay? And it’s up to the credit bureaus to come back within 30 days to say it is either deleted or they verify the information is actually you.
So if it looks like it’s incorrect, challenge the information. You could actually do this on the back office. The credit bureaus have this. But you can go on the back office at dispute … TransUnion has one, so it would be dispute.transunion.com.
Challenge the information and then they will come back and they will either say validated or not.
The second way that you can increase your credit score is going to be inquiries.
So when you go to a car dealership, obviously you know that if you apply for a BMW, they’re going to shop you through. If you can’t get approved for BMW finance, they’re going to shop you through about 10 different other places because they want to get the loan done.
You want to get it done. But they don’t tell you’re about to have 10 inquiries on your credit report. So if you find that any of the inquiries are inaccurate, or you did not apply there, whatever the case is, you have the legal right to challenge your inquiries.
Now, for every inquiry that you get removed from your credit report, you’re talking about anywhere between two and five points. If you’ve got 50, 60 inquiries on your credit report, imagine that.
That’s nearly a hundred point increase just by challenging information. You can always challenge the information legally if you feel in your heart that it is inaccurate. So, step number two.
Number three way to increase your credit score is going to be lower utilization.
Now here’s the kicker. If you want to lower your utilization, the best way to do this is start with the card with the highest credit limit.
So the one that is the highest credit limit or what you can do is the card that is the highest leveraged. If you have a $5,000 credit limit and it’s at 4,500, that’s something that is … like, the highest utilization card is the one you want to start with.
As you lower it … because the way the point system works is per card. Not overall.
Let me give you a quick tip on this one. You are better off challenging and lowering the utilization on one card than you would be paying a little bit on each different card.
So if you’ve got three or four cards that are maxed out, it is better off and you will get a much higher credit score increase by challenging one card at a time. And you want to attack the one which has the highest utilization.
Go through your credit report and see which card has the highest utilization. That is actually the card you’re going to start with in lowering the utilization until that one gets down to under 30%, then move to the next highest credit utilization and start attacking that one and paying it down.
That’s tip number three.
Number four ways that you can increase your credit score fast is going to be … and this is a reverse psychology.
Do not close any old or closed accounts. So if you have a closed account or anything that’s old history, put your credit score together.
It’s the glue of your credit score. Right? Because the older the accounts, the higher your score goes.
So as you close these old accounts … you say, “I’m not using that Sears card anymore.” Well, when you close that Sears account that’s been open since 2002, you just lost 17 years of history.
Your score will tank if that happens. So do not close any closed accounts and don’t close any open accounts that you are just saying, “Hey, I’m not using it anymore.” Keep those accounts open. They’re really keeping your score together.
Tip number five is Experian Boost. If you guys don’t know about it yet, the Experian credit bureau is giving you an opportunity to use cell phones and … your cell phones and your payments for your utilities.
So basically what you can do is actually have your payment history for your cell phones and your utility payments calculated into your score.
It’s something they did a few months back, and a lot of people are getting that 20 to 40 point boost just by putting in, “Hey, I’ve been making my utility payment for the last two years.” Well, they will report that data as two years of perfect payment history as a primary onto your credit report.
It is a sick way of increasing your credit score very fast without having to do anything other than letting Experian know that you want to go ahead and get in on your Experian Boost.
Number six … and this is reverse psychology.
Do not miss any payments on your credit cards or installments. One single payment. So if you want to raise your credit score … this is reverse psychology.
Do not do ‘x’ and your score will increase each month as long as you’re making your payments. Because the more payments you’re making on time, your score’s going to eventually go up.
If you miss a payment, set your payments up on auto.
Guys, anything that is credit cards, if it’s an installment like a car payment, or house payment, set the payment up as most as you can. If you set up on auto pay, you will not have the opportunity where something happens. You forget. You went on vacation.
Whatever the case is, you miss the payment. That’s going to affect you and it is the largest factor in your credit score. It’s 35%.
Think about that for a second. You’re up the 750 to cruise along. Next thing you know, you go on vacation, you forgot about your car payment, your car payment went 30 days late, and now you’re at a 525 score.
You just worked so hard to get it to the sevens and you just destroyed it because you forgot. Setting it up on auto pay is a short way to keep yourself together to making sure that your payments are being made on time each month because it will automatically deduct.
And number seven is add trade line.
So for people who have new credit, I’m going to give you an example how you can use this. You have new credit. Maybe you’re 18 to 25 years old.
You didn’t have a lot of credit. You can add trade lines to get the history that you don’t otherwise have. So if you’ve got a couple … A lot of people we deal with have a small Capital One $300 credit limit, and maybe they have a Credit One bank 500 to a 1,000 credit limit.
Small credit limits. And literally it’s six months old. Okay, great.
But you’re not going to be able to get any kind of major credit cards or anything like that with that kind of history.
So what you can do is you can actually add as many years and as much credit limit you want by adding a trade line.
We have trade line packages. We have single trade lines.
But the benefit of doing it is you can put on age onto your account without actually have to wait that time. Also, you can put any kind of credit limit you want on there.
So we’ve got limits from 500 to 79,000. By having that as your high credit, typically what happens is the credit bureaus … excuse me, the creditors see that when you apply that you have a $25,000 credit limit.
And the chances of you getting higher limits go up dramatically because they don’t see a three or a five hundred credit limit on there.
So you can always add trade lines at any time.
If you guys need help with any of this or if you have questions about this video at all, post the comments below.
I make sure I reach out to each and every one of you guys. And again, thank you guys for watching Tradeline TV. I really appreciate it.
Our phone number is 904-515-6698. I’m going to say that again. That’s 914-515-6698. If I can help you in any way, shape, or form, reach out. Let me know.
Again, my name is Mike from Wholesale Tradelines and I appreciate you watching.
As always, I’ll see you tomorrow.