How To Raise Your Credit Score By 200 Points
How to raise your credit score by 200 points? Did you know that at one point I had a 558 credit score and in just a matter of weeks, I had it over 770? Yes. I literally got my credit score increased by over 200 points.
And now, it’s over 800. I’m going to share with you exactly what I did and how you can do it too. Let’s go. So, when we are talking about credit, we are talking about personal credit scores.
Many of you guys may be aware that there are 3 credit bureaus that report personal credit. You have Equifax, Transunion and Experian. Those 3 credit bureaus will report all of the trade lines for all of the debts that you’ve taken out.
For example if you have student loans, if you have credit cards, if you have a car loan, if you have a mortgage; all of those different things will report on your credit report as a trade line.
They’ll report when you open the account, how much you owe them, what the payments are, how well you pay them. And basically, all of the information regarding that account. You also want a mix of different accounts.
You don’t want all credit cards because those are considered revolving accounts. You also don’t want just a car loan, or a couple car loans because those are installment accounts. You really want a nice mix of the different types of accounts that exist.
And you want to make sure that you are paying everybody on time. Those are the main things when it comes to personal credit. So, let me get into how you increase that score. So, step one, the first thing that you want to do when we’re talking about increasing your personal credit scores, you need to know what your credit score is.
Now, many times I know you’ve heard that you can get your credit report absolutely free. You can go to sites like annualcreditreport.com and get a free copy of your credit report annually.
However, you will not get your real credit score by getting that free report. You’re going to have to pay a little bit of money to actually see what your fico score is. I’m going to give you a link below to a company called myfico.
com. I have found that they are excellent resource for pulling my credit pulling my students and my other clients credits and it’s very accurate to what their real fico scores are. I’m telling you a secret but I really found that Credit Karma and a couple of the other ones, their scores are not necessarily as accurate as my fico has been into what some of the lenders are seeing.
So, if you want to get your credit score and you want to get your credit score up, you got to know where you start. So, go ahead and pull that credit report and pay a little bit of money to find out what your credit score is so that we can go from there.
So, when it comes to personal credit, there’s a major problem that many people have already found and this is one of the things that I found. As I started using a lot of my credit cards, my credit score started to go way down but I needed to use my personal credit in order to build my business.
So, I’ll take you back. Many of you guys know that I started investing in real estate around 2002-2003 and I was a complete disaster. I ended up losing everything and ended up back in my parents’ basement with multiple foreclosures and bad credit.
I was a disaster. But while I was in my parents’ basement, I learned something called wholesaling. I learned how to find people with property problems and I learned how to get those properties under contract and then flip those contracts to other investors for a fee.
I literally started making five and ten thousand dollars per deal and I was able to get myself out of my parents’ basement. The problem is I still kind of had bad credit. I would pay off some of my debts and I started paying down things and trying to get myself back into position.
But I still had a very low credit score because of all of the foreclosures in the bankruptcies that were on my credit report. So, when I was looking to increase my credit score, I had to get creative.
One of the things that I did was I got someone to sponsor me. So, many of you guys know that you can find someone to put you as an authorized user on their credit cards. I did this and my credit score increased by over a 100 points.
I literally was able to ask my dad if he would put me on some of his credit cards. I knew he had very good credit but I knew he wasn’t going to like co-sign for me or anything like that.
So, I simply asked if he could put me on his credit cards as an authorized user especially credit cards that had no balance and a very high credit limit. For example, he had an American Express that had like an $8,000 limit or something like that.
And he didn’t carry a balance on it. Meaning, he never really used the card and he had had that card for like 7 or 8 years. So, when he added me to that account, they started reporting that on my personal credit report as an authorized user and my credit score increased.
He did that on about 5 or 6 of his credit cards and that was how I was able to get my credit score up 100 points. So, that’s how you get your first 100 points. You need to find a sponsor, you need to find someone with very good personal credit and ask them if they will allow you to be an authorized user on those accounts.
They do not have to even give you the credit card so there’s very little risk to them. The next thing that I did to increase my credit score that you can do is you need to get some of that bad credit off of your credit report.
You’ve got to start cleaning up your credit report. So, one of the things that I learned is that you could get errors or omissions or things like that on your credit report off of it.
Because what I learned was the burden of proof was on the person that reported it. So, in other words, if I had a charge off with a t for a cell phone that I didn’t pay, the burden of proof was be on At&T to prove that it was me and to prove that I still owe the debt.
And if they did not verify it, it would have to be removed off of my credit report. Well, you can do the same thing. Once you have the copy of your credit report as I’ve already told you to do when you have all of the accounts.
It’s very simple to just go through them and find any inaccuracies, any errors, anything that you could dispute to get that off of your credit report. You need to find any inaccuracies, any errors, or any misrepresentations.
Or if it’s something that you see on your credit report that you just don’t recognize or you don’t recall, you can also get that removed. So, you can start getting bad credit deleted off of your credit report by starting to file some of those disputes and by locking up your credit.
The next thing you can also get off of your credit is inquiries. Many times when we apply for things, people will pull our credit and they will pull it many, many times with different lenders.
You may go to apply for a car for example and they may shop your loan through all of these different companies and each of those companies is giving you hard inquiries. You literally can take it into your own hands and start to get those hard inquiries removed from your credit report.
I’ve literally made a video about this and I’m going to put a link in there on how to remove those hard increase because it is amazing and it is something that you need to do and this is how you will get even more points.
What happens with those hard inquiries is is probably costing you about 5 points for each one where you got declined from. And if you can get those inquiries removed… Again, they’ll remove from themselves after 25 months, okay? Because it has to stay up there for 2 years.
After 25 months, they’ll automatically fall off your credit report. But if you want to get those removed sooner, you can go ahead by doing that and following the process that I outlined for you and again I made a whole video for you.
So, you want to start cleaning up that credit removing any bad credit and errors, omissions, misrepresentations, things you don’t represent., things that you don’t recall. And then last but not least disputing and removing all of those hard inquiries and getting that credit report cleaned up.
Okay. And last but not least, like I said, I was going to give you a big secret on how you would never have to worry about personal credit again and do all of what Noelle did. So, like I said, I have great personal credit right now but I had terrible personal credit a couple of years ago.
I was in a situation where I didn’t know anything about personal credit but more importantly, I didn’t know about business credit. One of the things that has changed my personal credit situation forever is the fact that now I have a strong business credit profile for all of my businesses.
I’m able to access hundreds of thousands actually millions for some of my business in business funding using my business credit profile. This doesn’t go on my personal credit report as I use those business credit cards, my score is not going all up and down like it was when I was using my personal credit card.
And now, I’m in a situation where I really don’t even have to touch my personal credit, my business credit handles everything that I need. Additionally, when it comes to business credit, the limits are so much more higher.
With personal credit, oftentimes, if you get a capital one card for example, they may only give you $1,000. But with a Capital One business credit card, they’ll start you off with $5,000 where they would have probably just started you off with $1,000 with the personal one.
So, again, the limits, the amounts, everything are so much higher. It’s a different world and you really want to step into the world of business credit. First, follow the steps that I said and fix that personal credit but please take a look and learn about business credit.
I’ve made a ton of videos teaching you all about this absolutely free. Let’s get on that bandwagon. So, there you have it. You now know how to increase your credit score by 200 points.
I’ve given you all of the steps, all of the different things that I’ve done and told you exactly how to do it. Make sure you click that like button. Make sure you subscribe to my channel.
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This is Noelle. To your success.