100 POINTS IN 14 DAYS! INSTANTLY INCREASE YOUR FICO CREDIT SCORE FAST

Summary

The video script offers six strategies to rapidly improve one's credit score by 100 points or more within a short period of 7 to 14 days. Key methods include paying down credit card balances to reduce utilization, adding rental history to the credit report to show responsible payment behavior, settling or reducing the balance of charged-off credit cards, requesting a credit limit increase to lower the credit utilization rate, using a personal loan to pay off credit card debts before they report to bureaus, and becoming an authorized user on someone else's credit card with a strong payment history, an older account, low balance, and reporting to all three credit bureaus. These tactics are particularly effective for individuals with lower credit scores, aiming to boost their scores for better financial opportunities such as home ownership.

Takeaways

• 📞 **Ask for a Credit Limit Increase**: You can call your bank or go online to request a higher credit limit, which can be impactful if you have existing balances.
• 💳 **Paying Down Credit Cards**: Paying off or reducing credit card balances before the statement date can significantly improve your credit score, especially if your score is under 700.
• 🏠 **Add Rental History**: Including positive rental history to your credit report can boost your score as it's considered by FICO and can appear on your report within 14-21 days.
• 🚫 **Address Charged Off Accounts**: Settling or paying down the balance of charged off credit cards can reduce their negative impact on your credit score due to utilization rates.
• 🔺 **Utilization Matters**: Aim to keep your credit card utilization below 30%, or even better, around 7-10%, to positively affect your credit score.
• 📈 **Timing is Key**: Knowing when your credit card issuer reports to credit bureaus can help you time payments to maximize your score improvement.
• 💰 **Personal Loans for Debt Consolidation**: Using a personal loan to pay off credit card debt can temporarily show paid-off accounts on your credit report without immediately adding the loan to your debt.
• 👥 **Authorized User Benefits**: Becoming an authorized user on someone else's credit card with a good payment history, low utilization, and an established account can quickly boost your score.
• 📋 **Check Bureau Reporting**: Ensure that the account you're being added to as an authorized user reports to all three credit bureaus for maximum impact.
• ⏳ **Quick Impact**: Some of these strategies can provide a quick boost to your credit score within 7 to 14 days, but they are most effective for those with lower credit scores.
• 🔍 **Credit Karma Utility**: Utilize tools like Credit Karma to monitor your credit report and understand when updates occur for strategic credit score improvement.

Q & A

What is one of the first steps suggested for improving credit score quickly?

One of the first steps is paying down your credit cards before the statement date to lower your credit utilization ratio, which can have a significant impact on your credit score.

What is the recommended utilization ratio for a credit card to positively affect your credit score?

The recommended utilization ratio is around 7% to 30%, with an ideal target being around 10%.

How can adding previous rental history to your credit report help your credit score?

Adding previous rental history can help your credit score because FICO includes rental reporting in its scoring algorithm, and it can show up on your credit report as soon as 14 to 21 days after signing up with a rental reporting service.

Why is it important to check for charged off credit cards when trying to improve your credit score?

Charged off credit cards with balances still affect your credit score through utilization, even though the account is no longer open. Settling the account or paying it down can improve your score.

What is the significance of asking for a credit limit increase on your credit score?

A credit limit increase can lower your credit utilization ratio if you have existing balances, which can have a positive impact on your credit score, especially if your score is under 700.

How can using a personal loan to pay off credit cards temporarily improve your credit score?

Paying off credit cards with a personal loan can make them appear as paid off on your credit report, while the personal loan may take longer to show up. This can create a window where your credit report looks better, although the effect is temporary.

What are the four key factors to consider when becoming an authorized user on someone else's credit card?

The four key factors are: 1) Flawless payment history of the primary cardholder, 2) The age of the account (preferably over 6 months to 15 years old), 3) Low balance to credit limit ratio on the card, ideally around 7% to 10%, and 4) Ensuring the account reports to all three credit bureaus.

Why might a credit score increase not be effective for someone with a score already over 700?

The strategies mentioned are more effective for individuals with lower credit scores, typically under 700. For those with higher scores, the impact of these actions on the credit score may be less significant.

How often should one check their credit report for updates?

It is recommended to check your credit report regularly, at least once a year, or more frequently if you are actively trying to improve your credit score. Tools like Credit Karma can provide more frequent updates.

What is the role of credit utilization in determining credit score?

Credit utilization, which is the ratio of your credit card balances to their credit limits, is a significant factor in determining your credit score. A lower utilization rate is better for your score.

Can having a balance on your credit card prevent you from getting a credit limit increase?

No, having a balance on your credit card does not necessarily prevent you from getting a credit limit increase. However, the impact on your credit score will be more significant if you already have balances.

What is the general timeline for seeing an improvement in credit score after implementing the strategies mentioned?

The timeline for seeing an improvement can range from 7 to 14 days or less, depending on the specific action taken and how quickly it is reported to the credit bureaus.

Outlines

00:00

📈 Boosting Credit Score by Paying Down Credit Cards

The first paragraph emphasizes the importance of reducing credit card balances before the statement date to improve one's credit score. It explains that individuals with lower credit scores, typically under 700, can significantly increase their score by paying off their credit cards. The key is to bring the credit utilization rate down to around 7% to 30%. It also mentions using tools like Credit Karma to find out when the credit card issuer reports to the credit bureaus, which is crucial for timing the payments effectively.

05:00

💳 Strategies to Improve Credit Score Quickly

The second paragraph discusses various strategies to quickly add points to one's credit score. It covers methods such as adding rental history to the credit report, which can show up in as little as 14 to 21 days and can be done through a specific company mentioned in the video description. It also addresses dealing with charged-off credit cards by settling the account or paying it off, which can help improve the credit score by reducing the utilization rate. Additionally, it talks about the possibility of increasing one's credit limit and using a personal loan to pay off credit cards. Lastly, it touches on becoming an authorized user on someone else's credit card with a good payment history, which can also boost the credit score.

10:02

👀 Becoming an Authorized User on a Credit Card

The third paragraph focuses on the nuances of becoming an authorized user on a credit card to improve one's credit score. It highlights the importance of the primary cardholder's payment history, the age of the account, the balance in relation to the credit limit, and the reporting to all three credit bureaus. The paragraph advises that the card should have a low utilization rate and be reported to all three bureaus to maximize the benefits. It also cautions that these strategies should be approached with care and understanding to avoid potential pitfalls.

Keywords

💡Credit Limit Increase

A credit limit increase is a request made to a credit card issuer to raise the maximum amount of credit a cardholder can use. In the video, it is suggested as a method to improve one's credit score by reducing the credit utilization ratio, which is a significant factor in credit scoring models. An example from the script is where the speaker advises calling the bank or going online to request a credit limit increase, which can be impactful if there are existing balances on the card.

💡Credit Score

A credit score is a numerical expression based on a level analysis of a person's credit files, to represent the creditworthiness of that person. The video focuses on strategies to increase one's credit score by 100 points or more within a short period. The speaker mentions that the strategies are particularly effective for individuals with a credit score under 700.

💡Credit Utilization

Credit utilization refers to the ratio of your credit card balances to their credit limits. It is a key component of your credit score. The video emphasizes the importance of reducing credit utilization to less than 30%, and ideally around 7-10%, to positively impact one's credit score. An example provided is paying down a credit card balance from near the card's limit to around 30% of the limit before the statement date.

💡Rental History

Rental history is a record of one's payments and tenancy details when renting a property. The video suggests adding positive rental history to one's credit report as a way to boost the credit score, as it can show a history of timely payments and may be included in the FICO scoring algorithm. The script mentions a company that helps incorporate rental history into a credit report, which can reflect positively if the payments have been consistent.

💡Charged Off Credit Cards

Charged off credit cards are accounts that have been sent to a collections agency because the borrower has failed to pay the debt. In the video, the speaker advises looking for charged off accounts with balances and settling them or paying them down to reduce their negative impact on the credit score. This is because the utilization on these accounts still affects the credit score calculation.

💡Authorized User

An authorized user is someone who has permission to use a credit card account that is under another person's name. The video discusses becoming an authorized user on someone else's credit card as a strategy to quickly increase one's credit score. The benefits include access to the primary cardholder's positive payment history and low credit utilization, provided the primary cardholder has a strong credit profile.

💡Personal Loan

A personal loan is a loan that is taken out for personal use, rather than for a specific purpose like a mortgage or auto loan. In the context of the video, using a personal loan to pay off credit card balances is suggested as a strategy to improve credit scores. The idea is that once the credit card balances are paid off, they will be reported as 'paid in full' to the credit bureaus, which can temporarily boost the credit score before the personal loan begins to appear on the credit report.

💡Payment History

Payment history is a record of whether payments for debts have been made on time or late. It is a critical factor in determining an individual's credit score. The video emphasizes the importance of a flawless payment history when considering becoming an authorized user on someone else's credit card to benefit from their positive impact on one's credit score.

💡Account Age

Account age refers to the length of time a credit account has been open. The video suggests that the older the account, the better it is for improving one's credit score, especially when considering becoming an authorized user on someone else's credit card. Older accounts with positive payment history can significantly contribute to a higher credit score.

💡Credit Bureaus

Credit bureaus are agencies that collect and maintain information about an individual's credit history. The video discusses the importance of understanding when credit card issuers report to the credit bureaus, as this timing can impact the effectiveness of strategies to improve one's credit score. For example, paying down credit card balances before they are reported can help lower the credit utilization ratio, which is reported to the bureaus.

💡Credit Karma

Credit Karma is a personal finance company that provides free credit scores, reports, and monitoring. In the video, it is recommended as a tool to monitor credit utilization and to find out when credit card issuers report to the credit bureaus. By using Credit Karma, individuals can stay informed about their credit status and plan their strategies to improve their credit score accordingly.

Highlights

You can request a credit limit increase by calling your bank or going online, which can be impactful if you have existing balances.

Having a balance on your credit card does not prevent you from asking for a credit limit increase.

The first step to improve your credit score quickly is to pay down your credit card balances before the statement date.

Paying down credit card balances to around 30% utilization is better than higher percentages.

The impact of these strategies is more significant for individuals with credit scores under 700.

Adding 24 months of on-time rental payment history to your credit report can significantly boost your score.

Utilization rates on charged-off credit cards still affect your credit score negatively.

Settling charged-off accounts or reducing their utilization can improve your credit score.

A credit limit increase can lower your credit utilization rate, assuming you have a balance on the card.

Using a personal loan to pay off credit cards can temporarily improve your credit report appearance.

The personal loan method is effective for those with credit scores between 600 to 650.

Becoming an authorized user on someone else's credit card with a strong payment history can increase your score.

The account age of the credit card you become an authorized user on should be at least six months old.

The balance on the credit card you're an authorized user on should be low to maximize the positive impact on your score.

Ensure the authorized user status is reported to all three credit bureaus for maximum effect.

Credit Karma is a useful tool for monitoring when your credit card provider reports to credit bureaus.

Improving your credit score by 100 points or more can be achieved within 7 to 14 days using these methods.

Transcripts

simply call the bank and say hey can I

go ahead and get a credit limit increase

you don't even have to call them you can

go online if you want to if you're

approved assuming you have balances as

well whether you have balances or not

but you're really going to see the

impact if you already have balances okay

just because you have a balance on your

credit card that does not mean that you

cannot ask for a credit limit increase

once you do

that if you need a 100 points added to

your credit score then you're going to

want to stick around until the end of

this video if you need 100 points added

to your credit score fast then you want

to stick around until the end of this

video as we're going to break down six

ways that you can improve your credit

score 100 points or more within 7 to 14

days or less let's get right into it

number one is going to be paying off

your credit cards or paying down your

credit cards number one the first thing

you have to understand is that if you're

looking to get 100 points really fast

that means your score is more than

likely under 700 now this will not work

if you are looking to do this is if your

credit score is already over 700 this

will only work if your credit score is

more than likely under 700 under 650

under 600 the lower your credit score is

the more points you're going to see from

this list okay so that's the first thing

that you have to understand but the

first step that you want to take is

actually paying down your credit cards

all right so if you're looking to get

100 points that means you obviously need

100 points which means you're probably

in the threes fours or fives or low

sixes trying to get to the the sevens

and of so forth okay or trying to get

into the sixes as well too as that's

where you can get home ownership but

number one is essentially going to be

paying down your credit cards before the

statement date let's say for example

your credit card statement date is on

the 15th okay and then you have the

statement date and then you also have

when they actually report to the actual

credit bureaus that's more important to

find that out when they actually update

this you can look at your credit report

credit karma is a great way to do this

because Credit Karma updates every time

that you actually go to the website and

refresh it now in some situations it may

be you may have to wait about a week to

refresh it but you also can call your

credit card provider and say hey when do

you report this to the credit bureau

then once they give you that time and

date then once they give you that date

on when they report to the credit

bureaus now you know when you need to

have that credit card paid down so for

example if you have a credit card that

has $1,000 limit and more than likely

that balance is going to be close to

$1,000 as well or somewhere in that

range you want to pay that credit card

down pre preferably get it around about

30% 10% somewhere ideally about 7% if

you can the reason why I say 30 is

because 30% is better than 90% right 30%

is better than 60% or 50% but if you can

do it bring it down to 7 to 10%

utilization and you want to go ahead and

get that done before the statement date

number two adding previous rental

history to your credit report there's a

lot of different you know ways that you

could do this but one of the best ways

to do this is actually going to be with

this particular company what this

company does is they allow you to well

not you but they essentially allow your

previous rental history to be added to

your credit report okay and FICO has

approved that this will be included in

the algorithm for your score now the

reason why rental reporting is on the

rise is because it only takes about 14

days to show up on your credit report

now this is assuming you sign up on

Monday you get your you get all the

documentation that's in there and things

of that sort by Tuesday Wednesday you

know make sure they have everything that

they need they verify it they can get

that added to your credit report as soon

as 14 to 21 days added to your credit

report okay and the company that we

recommend for this is actually in the

link down in the description below so

you can see if this is a good fit for

you to add previous rental history so

once that 24 months of on time payment

credit history hereit your credit report

you're most definitely going to see some

points added to to your credit score as

well number three this is where you want

to look for any charged off credit cards

with balances okay typically again when

people are looking to get 100 points

added to their credit scores they're

essentially in the lower score ranges

they're already under 700 they're

already under 600 okay and so you have

to look at how you got there right so we

can't go back in the past and fixed

everything but you can't forget one of

the biggest fastest one of the biggest

issues that keeps scores down is going

to be obviously negative things that

happen right late payments uh charged

off accounts things of that sort but

charged offs charge off accounts

specifically charged off credit cards

they have utilization that utilization

is still affecting you a lot of people

don't think about it like that let's say

you have a Charged off credit card and

you had a $2,000 balance you said I'm

not paying that right every single month

that that's on your credit report that

utilization is playing a role in the

algorithm and is hurting your score if

you can make a payment arrangement by

either settling that account or paying

it in full or just bringing it down and

treating it like a regular credit card

bringing it down to 10% 7% 30%

utilization that will affect your credit

score because again the algorithm

doesn't care that it's a Charged off

account the algorithm doesn't care how

old it is as far as it pertains to

utilization it is still hurting your

it's still hurting your credit score

just as if that credit card was still

open number four is asking for for a

credit limit increase okay now you

obviously in order for you to do this

you need to be in a in a a small window

like anywhere between about 600 to 650

you still can maximize of the points you

know by simply asking them for a credit

limit increase so for example let's say

for example you already have your credit

cards and then you want to go ahead and

get close to 100 points by doing all the

rest of these things then this is

something that you want to add to that

Arsenal as well you simply call the bank

and say hey can I go ahead and get a

credit limit increase you don't even

have to call them you can go online if

you want to if you're approved assuming

you have balances as well whether you

have balances or not but you're really

going to see the impact if you already

have balances okay just because you have

a balance on your credit card that does

not mean that you cannot ask for a

credit limit increase once you do that

let's say for example your balance on a

credit card is $300 let's say the limit

is 500 so balance is 300 limit is 500

that's already over 50% utilization okay

so now that your already over 50%

utilization let's say you call the bank

and say hey can I get a credit limit

increase or go online however you want

to do it and they give you a credit

limit increase of a, to, 1500 okay now

instead of the utilization being I'm

sorry instead of the limit being 500 now

that let's say for example that limit

was a th000 not 1500 because a th000

that's I think that's more easier for

people to accomplish right off the bat

okay going from 500 to a th000 now it's

going to be 300 divided 1,000 versus 300

divided 500 now you're going to be able

to now you're going to be at 30%

utilization right instead of being at

60% utilization okay and again that's

the thing you want to make sure that you

are in position to do that okay the

score has to be there number five is

using a personal loan to pay off your

credit cards now in order to do this you

got to have a score between 600 to 650

in order for this to work okay that's

number one number two you need to get

the credit card uh not just the

statement dates but you need the credit

card dates that they're going to

reporting to the credit bureaus okay and

what you do what how you'll be able to

do it is you'll be able to take your

personal loan pay off the credit cards

now when the credit cards report to the

credit bureaus they're now going to show

as paid off but guess what's not showing

on your credit report exactly the

personal loan is not showing on there

yet because that's going to take a while

to show up okay now you have that window

of time that you look good on the credit

report but obviously it's just a matter

of time before that new debt drops on

your credit report but that's not going

to drop your credit score substan

because it's not looking at the debt

itself a personal loan is just a set

debt amount now what will reset your not

reset the score but what real reset the

algorithm a little bit is going to be

the fact that you have a brand new

account now on your credit report which

is going to affect your average age of

accounts which affects the algorithm

overall but that's only going to help

drop you maybe a couple of points at the

most okay because again it's not a

utilization account it's not like

getting a brand new furniture credit

card and then maxing it out and then a

maxed out credit card shows up on your

credit report this is a personal Lo so

it has no idea what that amount of money

was used for or whatever but now it's

showing that you have those credit cards

paid off completely okay and again

that's if you need a quick way to see

these points for a short period of time

and of course the most famous is

becoming an authorized user now becoming

an authorized user this is something

that's been out for years piggybacking

trade lines but here's the thing okay

you got to be careful because a lot of

people forget the top things that you

should be focused on when you are

actually getting be when you're becoming

an authorized user us on someone's

credit report okay when you're becoming

an authorized user on someone's credit

card okay and that's number one is

payment history I know people say hey

have you been on time but on time means

a lot of different things for people on

time means this month on time means this

year on time means on this credit card

you You' be surprised what people think

know on time is but they forgot about

that one time or those two times that

they had those late payments so put eyes

on that unless it's someone that you can

actually trust okay at the payment

history it needs to be Flawless number

two is how old the account is sometimes

you're being added onto a credit card

but then they just opened that credit

card three months ago that's not going

to do anything to your credit score okay

you need something with some meat on the

bone you need something that's been open

for a minute at least at least about 6

months to see just a little bit of

progression the older the card the

longer it's been open the better so five

years 10 years 15 years so on and so

forth that's going to most definitely

make that card a strong card to be added

to number three is the balance making

sure that the balances are low on this

card okay it doesn't make sense to be on

a authorized user credit card if the

balance is if the balance is still too

close to the Limit okay um just because

someone has made the payments on time

it's not going to mean anything if the

limit is 10,000 20,000 if the

utilization is 80% 90% okay you need

something that's again that's around 7%

10% utilization to truly maximize that

credit card and the fourth thing that

people don't think think about is is it

going to show up on all three bureaus

okay cuz that's one of the points of

actually doing it sometimes when you're

being added to a um an as an authorized

user some banks do not report the

authorized user uh history to all three

credit bureaus they'll at least report

it to one so guaranteed it will be on

one which one is going to be a little

bit different for each credit card

company some credit card companies do

all three some do two and some do one

you'll find out once you're added to uh

those particular credit cards all right

and of course if you like this video

you're most definitely going to love the

next one and I'll see you there