If you’re buying a home for $200,000 and a low credit score causes you to pay a 2% larger interest rate… that 2% ends up costing you in excess of $100,000 over the time period of the loan. In other words, you’ll throw away more than $100,000 just because your credit score was low.
Of course, many people today will share the opinion this doesn’t matter as you’ll by no means remain in the home for the life of the mortgage and you can always later “refinance.” It would be good if that were true but, based upon our 16 years of experience we’ve found consumers rarely (if ever) do this. They’re too caught up in the “Monthly Payment” and more compact monthly payments mean more interest paid over the term of the loan.
As a result, it’s not uncommon for ninety points in a credit score to cost a client over $90,000 simply because of this type of thinking. Only focusing on the month-to-month payment makes about as much sense as marrying a person for nothing but their looks. On the flipside, increasing your credit score by as little as 90 points can put over $90,000 back in your pocket that you’d normally be pissing away to the bank (Yes, I say “Pissing Away” simply because that’s precisely what it is).
So, what’s the quickest way to increase your credit score up to 90 points – guaranteed? The answer to that query lies within the ANSWERS to these 3 inquiries:
1) What is the “HIGHEST SCORING” credit you can ADD to your Credit Report?
2) What is the FASTEST way to ADD this type of Credit to your Credit Report?
3) What impact will it have on your overall “DEBT to CREDIT” Ratio?
Contrary to common belief the HIGHEST SCORING credit you can add to your credit report is any form of UNSECURED revolving credit account (please note, debit cards do NOT count). Many consumers believe car loans and home mortgages symbolize the highest scoring credit one can add. In our experience, this is simply NOT true.
UNSECURED Revolving Credit Accounts are the RISKIEST form of credit to the lender while also being the simplest to be abused by the consumer. It’s for this Reason we believe we’ve found them to be the HIGHEST SCORING when added and used correctly.
Compare this to a vehicle loan or home mortgage where if you quit paying the house will be foreclosed or the automobile repossessed. The next question becomes…“What’s the quickest way to ADD this type of Credit to your Credit Report?” The fastest way to get this kind of credit on your report is by obtaining what’s known as an “Authorized User” Account.
However, for this to be MOST successful, you need to have…The SAME Last Name and The SAME Mailing Address, as the primary account holder. Otherwise, this method will be limited in its affect. So, if you have a brother, sister, father, mother (or spouse) living at the exact same address as you who are using the SAME last name…
By all means, have them add you onto their $5,000 Unsecured Credit Account and you ought to be looking good in no time flat. On the other hand, if this ISN’T an option, DON’T Despair. There is a “PLAN B” for you. You may be able to get hold of what’s known as an…UNSECURED “Consumer” CREDIT ACCOUNT
This is an account which gives you an “UNSECURED Credit Line” of up to $5,000 but only will allow you to purchase products or services from a particular catalog or website.
Kind of sounds like a scam, right? But DON’T be a fooled… as long as the account reports to “ONE” or more credit bureaus it’s actually the GREATEST invention since the mobile telephone and…It has the potential to save you over $90,000 in lost interest payments on a home mortgage.
If you’re sharp you should “get this.” If you’re “BULL HEADED” and stubborn nothing at all will change and the financial institutions will love that… Now, let’s wrap up with the ultimate question about adding an “UNSECURED” Consumer Credit Account and that is…
“What impact will it have on your overall DEBT to CREDIT” Ratio? The answer to this query is EXTREMELY vital as the majority of consumer credit score’s suffer from a negative “DEBT to CREDIT” ratio.
What Is Your “DEBT to CREDIT” Ratio? Your debt to credit ratio is extremely crucial to your credit score since it tells the story of how wisely you’re using the credit you’ve previously been granted. To calculate your DEBT to CREDIT ratio simply add up all the UNSECURED Revolving Credit Accounts you at the moment have listed on your credit report.
Let’s say you had $5,000 worth. This would give you a “HIGH CREDIT LIMIT” of $5,000. Now, let’s say on that $5,000 of Credit, you’re in personal debt for $4,000. Your DEBT to CREDIT ratio is calculated by taking the $5,000 in High Credit and dividing it by the complete amount of unsecured debt you have.
In this case you have 80% DEBT to CREDIT Ratio. Ideally, you need a DEBT to CREDIT Ratio of LESS than 45%. Now, in this illustration, let’s say you added an “Unsecured Consumer Credit Account” for $5,000. (Yes, you can only acquire products or services from their Catalog or web page, but let’s look at what happens).
When the account will get on your credit report your “High Credit Limit” will instantly…INCREASE by $5,000. This will take your High Credit Limit from…$5,000 to $10,000 (Overnight…) But that’s not even the ideal part. The very best part comes with the impression it will have on your DEBT to CREDIT Ratio.
Overnight, your DEBT to CREDIT Ratio will go from …(80%) EIGHT PERCENT Down to…(40%) FORTY PERCENT…Here’s how it happens. When your High Credit Limit elevated from $5,000 to $10,000 from the “Unsecured Consumer Credit Account” being added, your unsecured debt remained at $4,000. When you divide $10,000 in High Credit by $4,000 in Unsecured Debt you now wind up with a DEBT to CREDIT Ratio of only 40%.
This is the quickest way we’ve seen clients strengthen their credit scores by up to ninety Points – Guaranteed. If you work hard on this credit repair approach, you will too.Credit, Credit Repair, Credit score, Finance, Personal finance