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.