Tips: Increase FICO Score fast!


hey guys thanks for watching my video
today i essentially wanted to do a video about credit scores because I always
find myself getting into conversations with people around how you increase your
score how you get your score to be you know at
a level where it is considered to be excellent so that you can have the best rate as
well as make sure that you’re in the best position to you know negotiate and
acquire the specific things that you want and life however you know i’m going to give you a
couple of disclaimers some of this information you have to be super careful
with now well it will help you increase your credit score it also can backfire on you if not used
properly I know people like Suze Orman dave
ramsey would really hate me for doing a video like this however I know in my life there have
been times where I needed to know ways to increase my credit score quickly so
that i could get the best rate possible for things like purchasing of my home
and or times where i purchased my vehicles and or refinance to get a
better score on the vehicle that I already had so with that being said let me give you
a little bit of background on what your credit score is and i’m also going to
share with you some tips on how you can increase your credit score quickly
essentially your credit score or what is also called as your your FICO score is a
score that is created or generated by organization called psycho psycho has
five criteria and I’ll get into that a little bit later as to what the five
criteria are that they use to calculate your score there are three bureaus that calculate a
fico score for you and they each look at cycle stores have different weightings
that are slightly different for the five components that comprise your FICO score so with that being said you know I think the best way to look at
a fico score is a score that is created by the five criteria i’m going to tell
you a second that if you leverage correctly can really help you take
control of your credit now you have to understand your credit
is almost like you know how people think about whether or not they can trust you
right if you’ve shown in your credit that
you’re not trustworthy than companies are not going to want to lend you money
and not going to want to take that risk or if they do they’re going to charge
you an arm and a leg to do so so it’s very important to really take
control of your credit score and make sure that you’re maximizing your own
potential so the five criteria that comprise your
credit score one being your length of credit history the next is the type of credit that you
have also your credit history or payments being on time or not the next item and at the little suckers
i always forget the last one on the amount owed and then the last is new
credit and they actually break this out into percentages so I’m going to cheat
here thirty percent is for the amount owed
thirty-five percent is the payment history ten percent is new credit fifteen
percent is the link of your credit history and ten percent is the type of
credit that you have in use and that’s kind of a caveat that were in use the
biggest thing to think about is what can you impact on a short-term when you’re
trying to you know work towards something a particular goal like a home
or car or whatever the case may be so with that being said i’m just going
to give you some strategies that I’ve used that have worked for me and
hopefully they work for you as well but then I’m also going to share with you
some best practices that I think every person should definitely incorporate just to protect yourself and
to make sure that you know you’re really taking a hold of your FICO score the
best that you can so first I’m just going to give you the
best practices because I think that’s the easy stuff you should always know about where your
credit score is i highly recommend that people pull
their credit score at least once a year so the next thing that I just think is
the best practice besides pulling your credit report at
least once a year is if you get your credit report look through every single line item
there are times when you may actually be something that is not attributed to you
or sometimes things that are things that are reported incorrectly so it is very
important that you check out your credit report and get familiar with what’s on
there because there are definitely times where people find incorrect information
being reported on their credit scoring oh my gosh you’re trying to get credit
what would be the worst thing ever than have somebody else’s information on your
report or some company reported incorrectly on your score so I think it is super very very wise to
pull your credit report and understand what’s there and dispute anything that
you think is incorrect but in terms of trying to increase your
score and work towards the goals that you have whether it be getting a new car
or a new house or whatever that is you know there are some tricks that you
can use and Susie and dave ramsey I’m so sorry that i’m going to give us
information out but it’s you know something that you can use it I not done
in the past um you know when you’ve got new credit
length of history types of credit and use payment history about old so for new credit you know that’s
something you can control right you can control whether or not you’re making
applications or applying for new credit and just kind of doing you know every time you go to a store
and they ask you hey you want that discount you want to get a new credit
line stop doing that that is like the worst thing you can do
and I never never never ever get credit lines unless it’s something that I know
is going to be a long term line that i need and honestly if it’s not helping me
towards my credit strategy that I have for my life and I’m not going to take it
i don’t care what any sales person says because it’s probably going to benefit
them more than it will meet anyway so do not do those applications at the stores
that’s the worst thing you can do when you’re trying to build your credit the next thing is the length of credit
history so this is something that you really can’t you know impact on a
short-term you just kind of have to continue to use your credit like having
your house and your car and just being consistent with you know having lines of
credit open and i’m not saying have a bunch of line but again being strategic
with how you do it right so that’s something that’s important and
at the end of the day you can’t really extended past what it is it just kinda
is what it is right so you know just be consistent and also
i think another tip that kind of goes right along with that one is don’t just
go shutting down credit lines that you’ve had long-term history on sometimes you need to leave stuff open
and just kind of use it every once in a while make sure you pay it off when you
do that but when you close down credit lines you actually negatively impact
your score and that it doesn’t always happen that way but it does often
because that’s history right so if you’re closing down history that
they’re using to leverage in this calculation if it’s not there they can’t
use it so be careful when you just go and shut down a bunch of stuff because
at the end of the day you might actually be negatively impact you now another thing to think about is the
type of credit that you have in use not all credit is created equally so
things like credit cards vs a mortgage or car payment they are not the same and they’re not
looked at the same by the Bureau when they’re making the the calculations
around your FICO score so credit card bad
mortgage ok student loans good so these you know
different types of credit impact you in different ways and you have to be very
cautious around how you are using these things so what that make that payment history
now this is totally in your control totally you cannot be lazy about payment
history you cannot pay your bills wait and just say all whatever you know I’ll
take care of that later or it’s not that big of a deal because every time you
miss a payment that’s seven years you have to wait
before your credit report refreshes and that drops off so I am someone where
I’ve never had a late payment and I don’t plan on having a late payment and
that is for that very reason once you get that Nick on your credit it
takes a really long time for that to drop off and you can do things to try to
impact the score or sway things one way or another but if you have those late
they just hurt you and especially if you get more than one and it starts to
multiply it’s just bad bad bad so don’t do it is
thirty-five percent of your credit score and you definitely don’t want to have
that on there if you can help it last tips and i’m going to give you is
something that i would only use if I was really trying to do a short term
maneuver to increase my credit and I would do this but I wouldn’t use it so again you have to be very careful
with this tip because you can really slide and slip and end up in a very bad
situation but the last tip is you can actually call your credit card company
and if you have had good history with them you can ask them to increase your
credit limit when you increase your credit limit it’s an instant positive because at the
end of the day the computer is calculating your credit score based off
of you know a computer calculation so when they see that you’ve had an
increase that impact the amount of available credit that you have which
thus gives you a better score so that’s something I’ve done on a few
occasions and it’s come in handy it’s worked out
really well again you have to be careful though that you don’t turn around and
use that money that you just made available because now you’re going to
screw yourself even worse you have more debt and then
your score is going to go down even further so you don’t want to do that but you can
definitely be strategic and bring your score up by kind of playing the game
just a little bit and again you got to be careful but it’s
definitely something that you can do so with that being said you know I just
wanted to share with you a couple tricks that I’ve used in the past of different
things to do to really work on my credit score but the biggest thing is paying
your bills on time making sure you have a plan to move your money towards your
credit and not towards you know find things close whatever the case may be if you can get a handle on your credit
score you’re really positioning yourself to be in control but the best thing to
do is to get in a place where you don’t owe anybody and you’re purchasing
everything with cash that’s the ultimate goal you know that’s
my long-term goal but at the end of the day I understand that for me there are times where I need credit and
when I want to use it i want to make sure my score is good so that i’m paying
the least amount of money to get the money that i need so i hope that helps
somebody out there make sure it’s this information was useful to you like or
share this with anyone you know it would be applicable for and subscribe to my
channel you’re not going to be bringing you more information like this that I
think may be beneficial and i would love to connect with you but I’m with that
being said thanks for watching and have a great day

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