What’s up party people? This is Jason white, your personal cell phone credit guy. Today, we’re, going to be talking about a huge misconception when it comes to improving your credit scores and a lot of credit repair experts for companies.
Go about to helping people improve their credit, scores that actually doesn’t produce the results that people like you want, and today I’m, going to be talking about that and hopefully helping you make the right decisions when it comes to You improving your credit score either on your own, or you know when it comes to looking for someone for help.
Okay, so a lot of people have the idea that, when it comes to improving their credit scores the best way to go about that is by deleting negative information off the credit report. I can understand the idea behind that, but in reality that won’t get you the results you want and what I mean by that is.
When you look at your credit reports, your credit report is meant to show potential creditors. How well you are at managing debt? Okay and when you remove information off of your credit report, that has history along with it that can potentially hurt your score even more um, and in order for you to better understand this, you need to understand what makes up a credit score in the first place.
There are five components to your credit: score: payment, history, credit utilization, length of history, types of credits and enquiries. Okay. So when you look at your credit score, you need to understand that is deeper than just negative accounts.
It’s. Also, the history associated with those accounts: okay, um. So when you go about deleting information off your credit report and you’re, removing payment history, credit card information, length of history and then that that kind of credit you know either an installment revolving or open.
You know those components affect your credit score and when you remove that information off your credit report on that can actually result in a worse score as an effect and the best route to take. When approving your credit score is not to focus on the negatives, because I’m going to give you some insight.
What’s most important when it comes to your credit report? Is recent activity? Okay, your credit score is graded heavily on recent activity and when I say Rison I mean from from now until 36 months ago, after that, that negative history, after that, it really no longer hurts or greatly impact your credit score slightly, but not not very much.
So when you remove that information, that’s older than that you’re, actually hurting yourself and what you want to do. Is you want to find a better approach to credit repair and the best approach that you can ever take when it comes to improving your credit is looking at those five components I talked about earlier and manipulating those areas to your advantage, for example, payment history.
What’s, the best way to improve your payment history? Of course, it is to pay your current bills on time, but another strategy, along with that, is to add even more payment history to your credit report, if you have to open accounts on your credit report right now that are currently reported on your credit report.
Over 12 months, that’s, 24 months of positive information being reported 12 times. Okay, a better idea would be to, in addition to those two accounts, maybe opening up another two to three accounts over the year.
That could potentially add another 36 months of payment history to your report. 36 plus 24 equals 60, so you’ll, have 60 months of payment history and over a year being reported on your credit report compared to the two, the two re, the the 24 months from the to acomplish.
You already had open that strategy. Um credit utilization, instead of trying to close accounts, closed credit cards. How about we work on one lowering your credit card balances, of course, but also work on increasing your credit limits, adding another credit card requesting a credit line, increase being an authorized user on someone else’s.
Credit card that strategy, instead of just lowering credit card balances, of course we can do that, but you have to be strategic length of history. You never want to close accounts, because when you close an account, you lose future payment history from that account.
Okay, never close! It comes you never want to remove old accounts, because when you remove old accounts, it shortens your length of history. On your credit report, don’t, close accounts and don’t. Remove older comes whether it’s, positive or negative.
The only information that you want to work on getting removed off. Your credit report is recent activity and when I say recent again, I mean from now from today from 36 months ago, if it’s older than that, let’s, leave it alone and focus on rebuilding that strategy.
On your credit file mix, you know you have two instalments on your credit report. That means you don’t have any revolving accounts. You don’t, have any credit cards, look at the opening up a couple credit cards and mixing it up a little bit.
If you have two credit cards and no installments, maybe look into going to your bank and taking out a small personal loan and making sure, of course, it reports to the credit bureaus. But using that to rebuild your credit history and I’m.
Not talking about a $ 10,000 loan, I’m talking about a small five hundred one thousand dollar loan. You put that money to the side, and then you use that money to pay their comp back. You don’t have to spend the money that’s strategy.
You have to be strategic when it comes to improving your credit score now, of course, there are other strategies out there. I’m, not going to give you all my gems right now, but I just want you to get the right insight on real credit repair credibility.
Okay, you don’t want to just remove all negatives off your credit report. You don’t want to worsen your score even more okay. So when it comes to improving your credit score, one make sure you’re. Getting the right information.
You don’t want generic information. Generic information gets you nowhere, but a generic lifestyle. Okay, and at the end of the day, we’re, trying to massively improve your credit score, and in order for you to do that, you have to have the right information.
So stop listening to just anybody and make sure you’re, getting the right information for the right people, okay, um! So you know there are a lot of credit repair experts, credit repair companies that use the tactic of will remove all negatives off your credit report.
Within 30 days we’ll work on removing negative and inaccurate information off your credit report report. You want more than that. You also want someone who’s, going to help. You build your score, that’s.
One thing that they don’t market. Is we’re, going to build your score? Okay? What you need is someone or something, a strategy that’s, going to help you build your score, so make sure you focus on that and you focus on okay me removing this negative information off my credit report.
How is that going to result? In me, getting a better score, okay, so I say this all the time for every action there’s, a reaction. The action with a lot of these generic companies or people is, will remove negatives off your credit report.
Okay, that’s. The action, what’s, the reaction? What is that going to do for my credit score? That’s? The question you should be asking anyone who is looking to help you improve your credit score. How is this going to help me improve my credit score? Okay and usually the answer that they give.
You will be generic okay, so when it comes to you looking to work with someone or whether you’re doing it on your on your own, it doesn’t matter. May sure you have the right information that’s. Going to help you boost your credit score, hey.
This is Jason white. I’m, your personal cell phone credit guy. Hopefully you found this information to be insightful, helpful and inspiring. I specialize in helping people boost their credit scores every day.
If you ever needed help, I would love to help you do the same. You can learn more about how I can help you at WWDC is calm and also you can check the about area below and look at that information there.
At the end of the day, what matters is what you’re, going to do next.