BAD CREDIT SCORE FIX

How to dramatically increase your credit score and quickly and most importantly, for free with no B.S I found some absolute gems that anyone can use to dramatically increase their credit score quickly. We’re talking about potentially increasing your score by 100 plus points in just a few months without buying any programs. Without dealing with any B.S., you shouldn’t have to spend any money besides what you just normally spend on on your life. You just have to switch up a few things. So my research, I found that there are really three types of credit scenarios. And I’m going to address all three scenarios where you’re trying to increase your credit. My goal here is to make the most comprehensive and easy-to-follow simple steps. So here we go. The first scenario, scenario one is you have poor credit or OK, credit, and you just want to increase your score as fast as possible. Maybe you’re looking at buying a house. Maybe there’s some other lending that you need soon. You want to bump that up as quickly as possible. There’s another scenario where you have zero credit. You don’t know where to start, but you want to get some credit. Maybe you’re trying to finance a car in the future. You just want credit for the future and you have none right now. And then scenario three is you have OK or poor credit and you’re trying to increase that to its highest possible potential. And you’re willing to do that in the long term, like two to five years from now. Each of those scenarios has slightly different options. So we’re going to go over each scenario. But first, going to chat about how your credit score is calculated because understanding how this works will help build your knowledge here so you can understand what you need to do to build up the score. So taking a look at this chart, you can see all the various factors that go into calculating your FICO score, your credit score, from least important to most we can see at the bottom of the list, new credit accounts for 10 percent of your score. The type of credit used is 10 percent of your score. Basically, a mortgage is more important than your credit card, for example. The different types of credit have a little bit more weight, but that’s only 10 percent of your total score. The length of your credit history is 15 percent. This is how long you’ve been using credit and what is the average length of each of your forms of credit? We’re going to discuss that a little bit more later. Next, we have the amounts owed and that is 30 percent of your score. So that is very important. What is the total you owe and how much of your credit do you use? What is the utilization of your credit? Now, this one makes a huge difference and you’ll see that this comes into play in a big way and a little bit here. And then finally, we have a payment history, which accounts for 35 percent. And that one is pretty obvious. Do you pay your debts on time? Do you have outstanding debts? So depending on each individual situation, we’re going to focus things slightly differently. With one exception. You must pay all of your credit bills on time. If you’re missing payments, your score is going to stay low. There’s just no way around that. You absolutely have to pay off your debts on time. There’s no way to miss payments and dramatically increase your score at the same time. So pay off your debts and your credit on time. I can’t stress that enough. If you’re able to pay your bills on time, you are absolutely able to increase your credit score dramatically in just a few months. So we’re going to start with the first scenario here where you have no credit and you just don’t know where to go or how to secure any credit. You’ve maybe you’ve tried applying. Nothing’s working. I know this is the case for millions of people. I’ve talked to friends and family who have had this issue and they just can’t figure it out. And the first and biggest solution here is becoming an authorized user, not for whatever reason. This isn’t talked about very much. And it’s it’s like a true life hack. Now, this is. Only going to work for some people, though, so if it doesn’t apply for you, don’t worry, there are other options that will work well, too. This is just kind of like the life jack version. So this is the easiest way to increase your credit this way. You need to become an authorized user on a credit card or two of someone who has a very high credit score already. So if you have a parent or a spouse who has great credit and they trust you to be an authorized user on their credit account, you can become an authorized user. And within a couple of months, your credit score will take off like a rocket. It will increase hundreds of points potentially. I mean, depending on where your score is at right now, you can’t go from 800 to 1000 because that’s not a thing. And so where the bank is basically like, oh, you know you know, Suzy, with the 800 credit score, I should have let us know. You know, here’s some credit for here. Let me give you some credit just because, you know, Suzy, with 800 credit score, so this works if you have low credit or no credit and it’s it seems too good to be true, but there are, of course, risks. If you’re signed on as the authorized user for someone, they could potentially be hurt if you use their card and go on a spending spree or cause some issues to them. So there are some risks there. And I know not everyone has this option to be an authorized user. So let’s move on to ways that anyone can take their score from zero to a good or great score. You have to start getting credit, obviously enough. Now, you might have tried applying at various credit cards and you’re just simply getting denied because you have no credit. So here’s what you need to do. You need to go to a bank, preferably a big bank, like a big name bank, Wells Fargo, Chase, whatever, big bank, because they’re actually treated a little bit more highly when it comes to credit. Go to a big bank and get a secured credit card, but a few hundred dollars on it and pay that thing off every single week to a balance of one dollar before your statement date. Then when you get your statement of one dollar, pay that off in full. And I’m going to explain exactly why and the next section of this video. But that’s really important. And if you really want to double down here, you can get multiple secured credit cards or you can get a secured credit card and a secured personal loan. If you really want to double this down and then do the same thing, pay it off completely to one dollar before your statement date and then pay off that one dollar after you receive your statement. One caveat here is if you open several accounts, don’t just start spending like your royalty because also you have access to more funding and more credit. Don’t spend anything extra, don’t overspend. Otherwise, you’re going to get yourself into worse problems in the long run. And really, it’s that simple. You just get that secured card, you follow that protocol, you’re good to go. And your credit score will go through the roof. And I’m going to go more in-depth than that one dollar thing just in a second here in this next scenario. So this next scenario is you have OK or you have poor credit and you’re trying to increase your credit score as quickly as possible. Maybe you have a big purchase coming or for whatever reason, you need to try and get that thing bumped up as quickly as possible. This one’s a little bit more complicated than the last one. First, you can still use that authorized user trick that I mentioned earlier. If that’s applicable to you, absolutely do that because that will make your score jump up. I mean, watching this video alone is worth learning about that trick because that trick is mind blowing. How well that works for people. Next, you want to go to annual credit report dotcom. This is a free service. It’s not a sponsor. I’m not affiliated or anything like that. And look at your detailed credit report for the big three credit agencies, all three of them. This is free once per year. So absolutely do that if you’ve never done it before. Make sure all your reports are completely correct with zero errors. And if there are any errors, dispute those errors. It’s usually just a couple clicks to dispute them. If there’s anything that looks unfamiliar, dispute it, dispute everything. And to highlight how important this is, here’s a statistic that I found. The FTC found that one in five Americans have errors on their credit reports and one in four of those people have an error that resulted in them paying higher interest on a personal loan. So absolutely, take a look at that and report any errors. So now we’ve done that. The errors are disputed. If there are errors and they’re disputed, that’s going to by itself increase your credit score. Now, what you want to do is focus on your credit card, use utilization or your credit utilization. This is assuming that you’re already paying off all your debts on time because remember, that is most important. Pay off all your debts on time. Then we’re going to focus on credit utilization. So this is a huge factor in how your score is calculated. This is that 30 percent chunk that this is the percentage of your available credit that you use every single month. So, for example, let’s say your credit limit is a thousand dollars. If you spend four hundred dollars a month and your statement is four hundred bucks on each of your credit card statements, that means your credit utilization is 40 percent, which that doesn’t. Sounds so bad, but how this is calculated, they look at that as bad to have the best possible results, you want that credit utilization under 10 percent and really one percent is ideal. And you might be thinking this sounds ridiculous. And I agree. It seems absolutely ridiculous that one percent seems ideal. Who in their right mind could spend one percent of whatever their credit amount is and still survive? But I don’t make the rules here. I just found some workarounds that you’re going to be able to keep your current level of spending well, fixing your utilization and bumping up that credit score. So there are two ways to keep your current level of spending but fix your utilization. First, you can increase your credit availability by either opening new accounts or requesting higher limits on your existing accounts. First, try requesting higher limits, but opening new accounts initially will drop your credit score. So if you’re trying to bump this thing up as quickly as possible, you probably don’t want to open new accounts. So what we’re going to do is work the system by playing by its rules. This is what I mentioned earlier. You can kind of trick the credit utilization system by paying off your credit card every single week as opposed to every single month and then leaving that total balance to one dollar before your statement. So let’s say your statement happens on the 30th. You’re going to leave that one dollar on the 29th and your statement goes through at one point you pay off that one dollar completely. And the reason for this is major banks. Most major banks. Report your credit data to the credit bureaus after your statement date. And by having a balance of one dollar, they’re going to report to the credit agency that your credit utilization is around one percent and this is going to dramatically increase your score. This is where people see their score go from 600 to 650 in two months or six hundred to 725 in four months. And it’s just it’s honestly it’s kind of insanity. So I cannot stress enough how important credit utilization is. So here, do this set a reminder on your phone and title it. Max says check your credit score and for the next four months, follow that protocol of paying off your credit cards weekly every single week, pay off all your credit cards and then leave a one-dollar balance before your statement date and then pay that in full after you receive your statement. And four months from now, when that alarm goes off, come back here and let me know what your credit score increased to. Let me know what that increase was. I’ll be waiting and I just let you know what I’m excited for you in four months from now when you see the results because it’s going to be mind blown. All right. Now, the third scenario is the scenario where you have OK or poor credit, but you want it to be as high as possible in the long run. You don’t need it to jump up super fast right away. And you’re willing to take some short-run hits in order to have the highest score possible years from now. If we’re focusing on the long term, we don’t worry about those little hits of opening new accounts. So with us, we’re really building on everything we already talked about and adding a few additional steps so No. One, you can become an authorized user on the account of someone with good credit. If that’s available to you, do that. If it’s possible. Number to check, annual credit report, dotcom report, any errors, any and all errors. Number three, and this is where things start to differ. Open new credit card accounts at large banks. Again, large banks are a little bit more attractive when it comes to calculating your credit score. Then a relatively unknown bank is probably not going to make a huge difference. But for sure, a bank is going to be more effective to increase your credit score than a store credit card would be like a Wal-Mart credit card or something like that. And you want to have three or four lines of credit open. This will help your utilization and show that you can juggle more than one account and you’re a more reliable debt payer. But this is going to temporarily dip your credit score when you open new accounts. This is because of the age of your accounts. Remember, that was a factor. You want the average age of your accounts to be as high as possible. Well, if you open new accounts, that drops down the average. But in the long run, you’re better off that way and your utilization is a little bit better. Now, number four, call your existing credit cards and request an increase in your credit limit. Again, this will help out your utilization. Number five, use that credit utilization trick where you pay off your credit card weekly. Leave that at a one-dollar balance right before your statement, then pay off that one-dollar balance after you receive your statement and just do that. Not only is it going to help bump up your credit score, but you also can have a better idea as to what you’re spending. So you don’t just receive this bill at the end of the month and you’re like, oh, jeez, I overspent. So now every week you’re seeing this thing and you’re like, OK, I got to calm things down a little bit. And now you have a much better understanding of how the credit system works. I hope to hear you hear back from you four months from now. And I hope you’re profitable day.