Have you thought about how good it would feel to increase your FICO credit score as quickly as you possibly can?

But before I jump ahead of myself, let’s get one thing perfectly clear…your FICO credit score can only be sold to you from Equifax. 

In essence, the credit scores you receive from other credit reporting agencies have been uniquely created by each individual agency. 

What I am talking about is the scoring models differ from agency to agency.

What does this mean for you?

In short, every agency will give you a DIFFERENT credit score. 

So, make sure you got a copy of your credit score from each agency to know exactly where you stand.

Just in case you are wondering…the three major credit reporting agency are: Equifax, Experian, and TransUnion.

And here’s something else you need to know.  All credit-reporting agencies are required to SEND you a free credit report (upon your request) once a year.

On top of that – if you are denied credit for any reason – you are entitled to a free credit report from the agency that the creditor used.

Chew on this for a minute…your FICO score is the score that the majority of lenders look at before they extend credit to you.

Aside from that, one thing’s for sure…if your credit score is low, getting credit will be a tough nut to crack.

Now, pay close attention to the different scoring models used by credit reporting agencies…

1.    The broad-based next generation credit bureau risk score is called NextGen.
2.    Equifax calls their FICO scoring model the BEACON.
3.    TransUnion’s scoring model is called EMPIRICA.
4.    Experian chooses the Fair Isaac Risk Model.
5.    Credit Card issuers, Car loan lenders, Personal financing lenders, and those offering other installment loans used the Industry Option SM

As you might have guessed now that you’ve come to the end of this article…it is to see how important it is for you to understand your FICO credit score. 

And guess what?  This is only just the beginning.

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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: The single most cost effective (and powerful) tool for consumers to increase their high credit limit and decrease their debt to credit ratio is the use of Sub-Prime Merchandise Cards which report to one of more of the major credit bureaus.

Unfortunately, despite their immense benefits, these are the most misunderstood cards in the credit industry. A large portion of the misunderstanding is due to marketers misrepresenting the cards and the growing number of companies promoting them. When you learn how they work one quickly understands why they have been the subject of much misrepresentation.

A Sub-Prime Merchandise Card is nothing more than a card attached to a line of credit which allows you to buy merchandise from a specific vendor (usually the company that sold you the card). The merchandise (in most cases) will be purchased through a catalog or online mall.

Where the problem arises is that the cards are marketed almost exclusively to the sub prime market via email, telemarketing and direct mail etc. The reason for this is they can advertise almost irresistible offers like “$5,000 Credit Card… GUARANTEED! No Credit Check! NO Cosigner! You cannot be turned down!” or “Unsecured $10,000 Credit Line! Everyone Approved!”. I’m sure you get the idea…

While there are many companies which do this and are a “shady at best”, there are a few which do it legitimately and it’s the best kept secret to build your credit and build it fast.

Here’s how it works: the company approves anyone with a pulse (literally) and gives them a card for $2,500 to $12,500 with NO credit check and NO cosigner. However, the card is only good for merchandise through their website or catalogs and the consumer is required to put down a deposit on whatever they purchase. After the deposit is paid, the remaining balance is financed on the card.

For example. A person buys $1,000 worth of merchandise. Their deposit is $300 so they then finance $700 on their merchandise card and make payments. Sound like a scam? If you say “Yes” like most people then you’re missing the point… big time.

With a legitimate Sub-Prime Merchandise Card your credit line WILL be reported to at least one major credit bureau (or more). This means if you get a $5,000 card and you finance $500, on your credit report it will look like any other credit card and will do three extremely important things for you.

1.) It will increase your current “High Credit Limit” by $5,000 almost overnight as the account “looks” like any other unsecured revolving account.

2.) By carrying a small outstanding balance it will positively impact your credit report by building and showing potential lenders your credit worthiness.

3.) With a good payment history you are virtually guaranteed to receive “legitimate” pre-approved credit offers in the future due to other lenders renting your name from the credit bureaus.

This technique is hard to beat for both cost and effectiveness. Of course, the whole key is knowing exactly which cards report to the credit bureau and offer the best rates. The only thing more effective is…

PIGGYBACKING: Despite its’ virtually unlimited potential, piggybacking is not used by nearly as many consumers as it should be. It’s easy, effective, and extremely fast. Unfortunately, it’s mostly used among parents and siblings while those who can really benefit stay in the dark.

How it works. Almost every credit card or credit account will allow the primary account holder to add on (at a later date) what’s known as an “Authorized User” or “Secondary Account Holder”. In most cases, when this is done, the entire account history (retroactively) gets posted to the authorized users credit report regardless of their current age or credit history!

For example. If it’s a credit card with a $10,000 limit which has been paid as agreed for the last 10 years, then that complete history will be posted to the authorized users’ credit report. I once saw a clients’ credit report who used this technique with his mother. He was only 24 at the time and he had a $15,000 Gold credit card on his report with history going back 11 years! I laughed as I thought to myself that this kid would have had to be approved when he was 13 years old for this account to be his!

As you can see, this strategy is usually only used by parents and their children and in most cases with no regard to the benefits the children are reaping credit wise! In fact, in recent years, due to its’ effectiveness, this technique has led individuals with excellent credit scores to “rent out” authorized user accounts on one or even multiple credit cards in return for a fee! I once recall seeing an ad in USA TODAY for just such an opportunity. Like most good credit loopholes, I’m sure this methods’ days are numbered much like what may be the case with…

ADVANCED CREDIT PROFILING: This is a strategy while not complex, can be taken to very complex levels. Even in its’ most basic form, it’s taken advantage of by very, very few. It involves intentionally building your credit report in a way which creates a “profile” that closely fits the criteria of most lenders (as well as the overall credit scoring system). Again, this is a technique which can be used in a myriad of complex ways, but for simplicity I will explain it in its’ most basic form.

While many consumers will boast when they have 10, 20, 30 or even 50 thousand dollars worth of credit cards on their report, many of these same people do NOT have even one mortgage, automotive loan or lease, equipment loan or a even a line of credit with a local bank or credit union. These other forms of credit create a much more well rounded credit profile for the consumer. This is achieved by showing greater credit account diversity and experience with multiple types of credit due to the various lines held.

For example. A person with $50K in credit cards does not represent near the credit experience as a person with the same $50K along with a mortgage, an automotive loan and an equipment lease. We have clients who have financed vehicles not because they had to (or even wanted to) but because they “needed to” in order to create a credit profile that would position them in the future to secure the lowest possible rate on a mortgage when they applied and needed it.

More complex forms of Advance Credit Profiling involve one subscribing to affluent or semi-affluent business and professional publications and organizations. These would include magazines, newsletters, trade journals and national associations. The goal is to get ones name into the databases of these publications and organizations. Why? To get on highly targeted lists in order to receive select credit offers.

Marketers of credit offers have found that simply renting names of consumers from the credit bureaus does not provide enough information about the person as a credit risk anymore. Therefore, it is speculated that many will rent a list from the credit bureau and then cross-reference this list against another list they have secured from a consumer source such as an affluent business or professional publication, trade journal or organization.

By crossing the two lists together the marketers find the names contained on both lists. This in turn provides them with one highly refined and targeted list to mail their offer to. This results in shortening the process of securing a new quality account holder thus lower the overall account acquisition cost of new accounts.

When a consumer learns how to intentionally put themselves into these databases to wind up on these refined lists, the credit building process is sped up exponentially. Of course, many would call this “highly speculative” but we have undeniable experience that it works.

DEPOSIT LOAN PROGRAMS: This is a technique so unbelievable that I myself proclaimed it had to be a scam before researching the facts. It allows the consumer (or business) to have a $25,000 to $250,000 loan appear on their credit report as “Paid as Agreed” by way of very creative financing. This method is extremely effective and not within the budget of most ($750 to $7,500 upfront). Also, because this technique takes advantage of certain banking laws, I have reason to believe it could be made unavailable at any time if those banking laws were to change. This method can be used with consumer credit files on SSN’s as well as business and corporate credit files done on TIN’s as well as Dunn and Bradstreet.

In the end, all of us need to remember that today our credit score is more important than it has ever been in the history of the credit reporting system. While credit miracles don’t happen overnight, you can create your own credit miracles by applying simple insider strategies consistently over time. Before you know it, you’re a proud member of the 700 Club. The “700 Plus Credit Score” club that is!

Jay Peters
http://www.articlesbase.com/non-fiction-articles/insider-techniques-to-raise-your-credit-score-fast-83961.html

Ok, past credit messed me up. I have a judgement thats almost paid off. I am trying to Raise My Credit Score.I have 3 new accounts that I’ve paid on time for over 1 year. I read that one way to raise your score is to " piggy back" on a relatives good credit ( have them add me to one of their good accounts and not use it) Is this safe, is it legal. I would love to hear constructive ways to increase my credit score. Please don’t judge me. Almost all of my " bad" credit accounts have been paid off. I put my sons first when the divorce came. They lived in the house that I paid for while I lived in a basement.

Here are a couple of things you can do to raise your credit score quickly.

1) Have a relative with great credit add you to their credit card account. This can raise your score over 100 points instantly, and has not risk to them! Even though your relative can add your name to their credit card account, they don’t have risk if they don’t give you a credit card.

2) Use your credit cards for monthly purchase, then pay balance down to zero every month. If you have the cash, this is a very quick way to raise your credit score. Remember, creditors cannot "see" your income from the credit report, but they can tell you have financial strength when you pay down your card balances every month. This technique can raise your credit score up to 80 points.

3) Use time. Most people don’t realize that a bad credit item has the most weight only in the first two months, then hurts your score even less after 6 months, and even less after 2 years. After 2 years, many bad credit items don’t even hurt at all. I know a friend with 6 chargeoffs that are 4-6 years old and her credit score is 620, good enough to buy a house. Sometimes waiting even a month or two for a bad item to age is all you need for your credit score to bounce back.

It doesn’t mean you are a bad person when you have a lower credit score. Bad things just happen. Good luck with your credit score!

I’m working on raising my credit score…I have a few credit cards and have paid off one completely. Does your credit score raise immediately or does it take time? How long?

About a third of your score is based on the ratio of credit card debt to limit. Carrying balances of 30% hurts your score; 50% takes a big bite; 90% kills your score. As you pay off your overall credit card balances below those percentages, your score will improve.

Just a few short years ago, a law was enacted which said that you could get a copy of your credit history report free once per year. This was a great idea, and a lot of people took advantage of this. But still, the one thing that puzzles me is why more people are not taking advantage of this law?

It is because not everyone knows that their credit report contains more errors that it is worth. Thats right, it contains errors, and the number of errors it contains is anybodys guess. The reason for this is the sheer volume of data that the credit bureaus need to process and keep track of. And then one lender who had a contract with say Experian changes their contract so that now they report to Equifax, and the problem becomes even greater.

I would encourage you to spend a couple of minutes to think about this. All businesses and all consumers, past and present, plus all account they currently have plus all accounts they have ever had equals literally BILLIONS of data records that they need to keep track of and maintain. That is a database nightmare. Now if only 1% of that data is in errors, that means that several MILLION erroneous records are in there, and the actual estimate for the amount of errors is greater than 27%, according to recent studies.

But something that most people are not in tune with is that it is THEIR responsibility to get those errors corrected. The errors do not correct themselves, and will never get corrected if you do not initiate action to get them corrected. One of the things that compounds this problem even more is that you need to dispute that error with each of the three credit bureaus Equifax, Trans Union, and Experian because they do not share data between them.

One of the biggest problems with having errors in your credit report is that your credit score is not reported accurately. This could be good or could be bad, but for the most part, you need to assume it is bad and that the credit score assigned to you by the credit bureaus (individually) is lower than it should be.

So how do you get the wrong information removed from your credit report? The first thing to do is get a copy of your credit report, and get a separate copy from each of the three credit bureaus. Then you start the pain-staking process of going through the report, line by line, and noting everything that is not accurate, and then you file a dispute form with that credit bureau.

What happens when you dispute something is that the credit bureau has 30 days in which to either verify the information, or to remove it. If it cannot be verified, then they have a legal obligation to remove it. So for an account that has been paid off for 3 or 4 years, what incentive is there for the lender to verify that information? There is none, and chances are good that the negative information will be removed.

Now there is the question of the stuff that is REALLY in error, instead of just the stuff that while technically accurate, still reflects poorly on you. But with this, the procedure to file a dispute is exactly the same, and the credit bureaus have those same 30 days to either prove the information or to remove it from your credit report.

When your credit report is squeaky clean, your resulting credit score will be as high as it should be, and that is, after all, what you wanted to accomplish!

Jon Arnold
http://www.articlesbase.com/finance-articles/raise-your-credit-score-and-start-your-new-life-120847.html

I recently got my student refund money from school for this semester on September 5 and I paid off all of the debt that me and my husband owe on September 6(about $6,000 worth). We are trying to buy a house, but in order to achieve that goal our credit score has to be 50 points higher than what it is already to even get approved for a loan. We pay our bills on time and now we don’t have any debt. When will we see our credit score raise drastically, or what are some tips to speed up the process?

Your on the right path, just pay your bills on time, don’t miss a deadline, and you should see your credit rating soar!

I currently Have a Platinum Mastercard with no balance on it, and I want to keep it that way using it for only small purchases. My credit line is for $10,000 as of now, should I increase my credit line to $20,000 and keep no or a minimal balance on it to help my credit score. Will that be beneficial to raising scores and receiving good interest percentages on home loans and car loans in the future? I really just want to have the best score possible to save the most money later in life.

You need to do just a bit more research, and understand exactly what makes up your credit score.

Having too much of a credit limit can actually hurt your score. Unless you have a huge income you really don’t need too much limits.

But another major factor is how may different sources of credit you have. It is generally recommended that you have 3-5 credit cards.

So, I would prefer that you keep the card as it is, and get a second card with $2000. And unless you have a huge amount of income, don’t get to crazy with the credit limits.

An option that can help you raise necessary fund even if you do not have a perfect credit history will certainly be welcomed by you. Well, then you can consider the option of bad credit secured loan. Since it is specially crafted for borrowers with bad credit record, you can avail it even if you have factors like CCJ”s, bankruptcy, arrears, defaults etc. against you. This is not simply a method of availing some ready cash, but also helpful in improving the credit score.

The main idea behind bad credit secured loan is to facilitate the borrowers with specially designed, tailor-made financial solutions. According to the market trend, consumers disturbed with bad credit history are debarred from taking traditional loans. So, the options that are accessible despite adverse credit record remain suitable to them. Bad credit secured loan is such an option that can be availed by them.

With bad credit secured loan, things can be even more hassle-free. This loan has the backing of collateral. It means that the lender has strong assurance of money recovery. If any such situation occurs where the borrower fails to repay the loan amount, the collateral will be there to help the lender retrieve his money. This fact makes the loan easily accessible and enriches it with facilities mostly in favour of the borrower. Involvement of the security ensures that the borrower gets a competitive interest rate and a longer repayment period. Along with this, there will be flexible terms and conditions.

In addition to enjoying these advantages, the borrower can improve his credit score through successful dealing of the loan. If he can make the repayments in time without skipping any, then his credit score will go up. This will ultimately help him to regain his standing in the financial market. His potentiality as a borrower will be increased and the progress of his personal finance will become speedier.

Eric
http://www.articlesbase.com/loans-articles/raise-fund-better-your-credit-score-as-well-95497.html

My husband applied for an FHA loan but was told he neeeded to raise his credit score from a 615 to a 620. Within the last couple of weeks we paid off whatver credit card amount he had. His employment and salary were fine, just the credit rating needs to increase. Our lease is up soon and we really do not want to sign another one. Does anyone know what else we might could do to raise his credit rating in a short amount of time??

Thank you!

Сredit repair workеd fine to fix my credit. They disputed and removed lots of bad items from my credit report. I used this service – creditreport.fateback.com

I am on my first credit card with a $250 limit. I read that having a balance of no more than 30% each month would raise credit scores, but my dad says I should spend more since it is such a low limit. Is the 30% percent rule still true for low-limit credit cards?

First you have a low limit credit card – if you just charge 75.00 a month – and pay 75.00 a month, and you always pay double the minimum payment – they will be inclined to raise your limit (usually double each increment) This can only happen if you buy something that costs more than 250.00. You have to be able to accept it if your purchase authorization comes back NO. If you’ve been good, for at least 6 months – you can expect the limit to rise, by increments.
After one year w/this CC – apply for another account. You can do this every six months, and that will raise your limits.