hey what's up guys in this video I'm going to share three ways to increase
your credit score fast hey what's going on this is Sam Kwak or the Kwak Brothers
real estate investor and entrepreneur in this video I'm gonna share three ways to
increase your credit score ultra fast in fact this is gonna be a start of a new
video series on how to increase your credit score how to improve your credit
so that you can save money on an interest you can get approved for HELOC
or whatever goal that you have with your credit now before we dive right into it
be sure to go and hit the like button on this video because it does help us a lot
with our YouTube algorithm and if you want to see other people and their
credit score increase chances are you want to hit the like button to get us
started okay let's dive right in and before we do I want to make sure we
break down and just and make sure you guys understand that there are hundreds
of different types of credit scores out there I know some of you guys may have a
free app like Credit Karma or credit Sesame and a lot of times these apps
tend to give you scores that the banks may not see or banks don't have the same
scores as you may see on your free app so we want to make sure we understand
that there are hundreds of different types of credit scores
you know there's FICO a FICO 5 FICO 9 which is the newer model Vantage 3.0
there's national equivalency I mean there's so many different types of
credit scores out there but the two major credit scores that are often used
is Vantage 3.0 okay and there is FICO Fair Isaac corporation okay and most
banks probably 95% of the banks are gonna use FICO to determine your credit
score as a credit scoring model vanish'd 3.0 is what you often see in Credit
Karma credit Sesame so the Vantage 3.0 score is great it's kinda it's a good
temperature gauge it kind of gives you an idea where your credit is going to be
but it's not the most accurate way or it's not the same scoring model that the
banks use so it's kind of like taking the SAT but the college that you want to
go to is looking at a CT so obviously
different scoring model and you want to be aware of that because if you improve
your advantage 3.0 score but if you don't improve your FICO score I mean
it's kind of a you know it's not gonna get you where you want
so with vanish 3.0 in fact go they weigh different things differently but because
what matters FICO right I'm gonna talk about FICO more in
this video mainly because that's what the banks eat now with FICO score
majority of what counts towards a score is how well you pay on time so the first
rule is pay on time now I know this is super duper obvious most of you guys are
saying oh this is boring like I already know what this is but it's super crucial
because we don't learn this in high school we don't learn this in college
maybe you do but most of us have never learned to pay on time and you want to
make sure you pay off within 30 days now if you have a business with business
credit we're gonna talk about this in a whole in our video you want to pay on
time super duper fast now if you use for some reason look at your credit report
or you look at your your free credit reporting app and if you see that
there's a missed payment what you can do is you can call it you can call your
credit card company or call the creditor and find out what's going on right
there's a way to somehow rectify it most credit card companies are gracious
enough and are generous to where they want to work with you so that they you
know they don't report a late payment so at one point if you're like me I don't
know if I can make this payment or let's say your credit report early says that
you missed a payment go ahead and give you a credit card company a call and see
what you can work out with because this is something that most people don't know
they just think oh I'm I have a late payment therefore I have a late payment
and that's a done deal there's many ways and I also talked about credit repair in
just a sec but if you cannot pay on time or if you have a record of not being
able to pay on time call the company see what you can do to rectify the situation
that will be the first thing that I would do work directly with the creditor
now the second thing that contributes to your credit score greatly and this is
something that a lot of people have issues with and I'll use my there we go
my pen okay there we go is your utilization rate okay I know I
just said something fancy there but stay with me utilization rate has to do with
how much of your credit are you using so 30% of your FICO scoring calculation
uses utilization so here's what utilization is and utilization only
factors in the variable that goes into utilization is your revolving line of
credit a revolving line of credit is like your credit card where you can use
pay back reuse pay back some home equity line of credit some he laughs are also
revolving or at least reported as or open revolving so let's say you have
$10,000 limit credit card okay and you have another credit card of $5,000 limit
and you have another credit card that's the same thing $5,000 of credit card
limit let's say you have you know a thousand dollar balance here okay zero
balance here and maybe you have you know you maxed out this credit card right
here five thousand so what how the FICO calculation works in terms your
utilization it takes your thousand and five thousand and it says you know what
you have six thousand dollars of usage out of the total limit that you have of
ten thousand five thousand and five thousand so you have twenty thousand
dollars of total limit and you have six thousand dollars of usage
FICO calculation basically says you know what this person might be using a little
bit too much of credit okay if you pass the 30% mark this is where you're gonna
start to see your score drop because banks are starting to think well this
person is awfully using a lot of credit something must be wrong they might be in
a financially distressed situation they're not able to pay off their their
balance completely so something must be something that might not be right with
this guy or gal here ideally what you guys want to do is keep that utilization
percentage low below 30% but that also doesn't mean that you should keep it
zero completely this is another common myth that I see a lot with people with
credit is that they believe that by keeping their balance complete and zero
that that would improve their credit score which actually it may not and the
reason why I say that is you want to have some credit usage to at least keep
your credit score up and one thing I want to make sure backtracking explain
is that credit score doesn't mean everything guys credit report is what
actually mad is more greatly than just your credit
score so focused on improve your credit report then your credit score will also
follow and improve as well so with your credit utilization keep it below 30% but
again like I said don't just go straight to zero my suggestion my opinion is to
keep it anywhere between one to two percent utilization that way you show
your creditors and banks and as well as your credit bureaus that you're using
credit you are a credit user if you're not using credit chances are you don't
have the best credit score there's actually a rumor that Bill Gates have
terrible credit score because he pays everything in cash he never uses credit
cards right he never needs to get a loan this is why Bill Gates has a very low
credit score because he doesn't use credit so you want to show to your
creditors that you are using credit so if you have a high utilization rate
focus on getting that utilization rate down as low as possible
preferably less than 30% that's what you should be able to focus on and what
you'll notice is that when you keep when you go from let's say 50% utilization or
30% utilization you can expect your credit score to go up pretty high and
it's pretty significant so do that that's my second tactic to go and
improve your credit score fast the third way to improve your credit fast is
potentially using credit repair to get your credit score up there pretty
quickly now credit repair is a process process of correcting rectifying and
removing any inaccurate unverifiable or untimely information that's being
reported on your credit report so there's a statistics out there that say
that out of one out of out of all the Americans one out of five credit reports
contain an error or inaccurate information that isn't necessarily due
to the fault of the person holding the credit report so you may want to go look
at your credit report and see any inaccuracies or anything that's
misleading or any information that it's not under that's not verifiable you want
to look for those because they could potentially be hurting your credit score
more than you know so credit repair can be done on your own there are obviously
companies that you can hire to do the credit repair for you there are some
really good credit repair companies out there be careful with the ones that ask
you upfront fee in fact that's illegal you
shouldn't they should have been doing that and be careful with credit card
companies that guarantee you any results because no credit repair company can
ever do that so when you go into shop for credit repair companies be mindful
of those but do remember that you you can do the credit repair yourself it's
just kind of like do you want to do your own oil change or do you want to have a
professional do your own when you go through a credit repair process it
typically involves with asking the credit bureaus Equifax Experian
TransUnion to see if the information on their credit report is in fact
verifiable its timely and accurate I know there's a lot of credit repair
tactics that say oh you should go and tell people who tell the credit bureaus
that none of the current credit accounts are yours which obviously you don't want
to lie so what you do want to do is send them a letter
do not ever dispute online don't ever start a dispute online I know there's a
there's apps out there that lets you dispute your in actor season and
unverifiable information on your app do not do this because when you go through
an app or an online process of disputing any item on your credit report what
tends to happen is you waive your rights to see what methods that the credit
bureaus have used to verify your information to be true you want as an
American want to know what methods and what process the credit bureaus have
used to make sure that your information on credit report is accurate verifiable
and timely if you don't then you waive your rights and you don't have a whole
lot of option as far as your disputing method with your credit bureaus so when
you do a dispute or when you even when you ask the credit bureaus to check on
your credit report to see if it's accurate you want to do everything in
writing and preferably you want to send things using certified mail so a lot of
times even on asking hey credit bureaus please check out my credit report to see
if it's accurate even that in from even that mail they'll go ahead and update
and potentially delete some inaccurate information that's on your credit report
which could bump your credit score abroad to be pretty quick within 30 to
60 day time window so those are three way guys to little one is pay on time
and if you don't feel like if you don't know if you can pay on time or
if you already have a late payment go and call the creditors see what you can
do there are many generous and gracious ways that the credit credit credit card
companies and creditors deal with situations like this number to keep that
utilization low one thing I forgot to mention is that you can also decrease
your utilization rate by also increasing your credit limit so back to the other
example and I should have explained this thoroughly but let's say that $10,000
credit card if you can call in or risk request for a credit line increase from
10,000 to 15,000 but while keeping the balance the same you can expect your
utilization rate to go down because obviously you have a lot more limit and
your balance stayed the same so that's another way to decrease your utilization
rate if you cannot absolutely make a payment to get that utilization rate
down the third way obviously is just what I've talked about is credit repair
you can do this on your own there is a process to do this be smart about it
or you can hire a credit repair company it does cost a little bit of money but
oftentimes it can help you remove any inaccurate or unverifiable information
from your credit report so guys those are three ways to increase your credit
score fast and those are within 30 to 60 day time period there isn't
unfortunately a magic pill to make your credit increase SuperDuper fast don't
ever buy into products or services that promises any sort of result sometimes
they might be a scam so guys I hope this video helped be sure to hit the
subscribe button as well as hit the bell icon so that you get notified for future
videos the next video that you guys should watch is how to build business
credit so if you have businesses or are you looking to make money through a
business go ahead and check out that video on how to build business credit
SuperDuper fast