 Clean Up Your Credit
Scores... Now!
Insider Techniques To Raise Your
Credit Score... FAST!
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:
-by Terry Price
(C) Copyright Terry Price
All Rights Reserved
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