Hey guys Dan Frieda the mortgage update here and today we want to talk about credit scores, and how we're gonna work together
To get your credit scores from 400 500 to maybe over 800 with with
six maybe simple little tweaks
that I'm gonna walk you through step by step and
This doesn't even take any money to do that other than one piece of the puzzle that I want you to do
I want you in to invest maybe like twenty or thirty dollars, and here's what I mean by that. Here's why?
We need to get a benchmark on your credit scores so before we get started
if you would if you like this video in a lot of the other videos I put together please don't forget to subscribe below and
Also, if you would give me a thumbs up
So I know that I'm doing a good job
If you want to also leave a thumbs down in the comments and tell me what I'm doing
Or not doing right and what you'd like to see so also at the end of this video. I'm gonna give you two pieces of
this big puzzle
One is going to be how you can get a copy of a free credit report. That's not a gimmick. It's not a trick
It's not a the CFPB has announced that you are entitled to a free credit report each year
but the $30 I was talking about is is going to place a
benchmark or give us a lot of tools that we're going to use in these few tricks that I'm gonna show you on how to
Get your credit scores up probably we could probably get you up a hundred or two hundred Point points within 30 days, okay?
The other thing is at the end of the video
I'm going to give you a company that can help you with if you have collections
judgments false information on your credit report
Miscellaneous information on there that just shouldn't be there if you're a junior a senior, and you have the other person's
information on there it's a full-time job getting a lot of this stuff fixed corrected and
Things like that so it might be a little small investment that you have to take if you're if you hit any of those categories
To invest in to get that cleaned up, and they can usually have you cleaned up within 90 days
So let's get on to it. Here are some of the big tricks or a few
Huge tricks that I'm gonna give you on what I need you to do even if you have a 700 credit score these
These little tactics that I'm gonna give you I won't say trick so reference them as tactics
I'm gonna give you some tactics to do to increase your credit scores, okay?
so let's get started the first thing this isn't a
This is where I want to start the benchmark okay
I want you to get a copy of your actual credit report with your FICO scores, okay, I'm going to emphasize
Your FICO scores, and why and I'll put some other videos together to go over that with you, but your FICO score is
The score that most lenders almost all lenders use in
categories such as mortgages and cars
To grant you credit or not it's not your Credit Karma score believe it or not Credit Karma score is not used by any
lenders
Period it's an
educational tool or an educational number to give you just some
Information or teach you about the credit scoring system, okay?
So what I want to do is I want you to get an actual credit report with FICO scores
and
That's going to give us the benchmarking and give us a lot of details that we're gonna need in regards to these
Tactics that we're gonna go through okay one of the things that a lot of people
Ask me is or tell me not to do is pull their credit because they had another lender
pull their credit and
By me pulling their credit. It's gonna hurt their credit scores or drop their credit scores wrong in the Maurya
I'm I'm worried appropriate Chicago, and I have been for over 29 years
and
You know I get that comment quite a bit so how the algorithms read in the credit bureau system is if you're buying a car
Or a mortgage. They're expecting you to have multiple pools
within a short period of time
Okay, so if you have a couple lenders pull your credit within a week or two you're not going to be affected if if you
Went to another company and they pulled your credit in three days ago, and I pulled yours today
We'd most likely get
Exactly the same score unless some creditor posted information during that time frame, okay?
So that's one of the things I want to go over so let's get on to
one of the biggest pieces of this puzzle is your balance and
The high credit limit that you have okay, so here's what I want you to do when we get that credit report
That I again, I listed it down below
Go ahead and order it it should be twenty thirty dollars, and I want to get I want you to get all three credit repositories
Now that's TransUnion Equifax and Experian
Okay, we want to get those. Here's why I want you to go through the revolving accounts that you have
and I can show you how to do that maybe what I'll do in another video is I'll get a credit report and kind of
Black out a lot of the sections, so you can't see the person's account numbers
And we'll go through that but I want you to go through your revolving credit
Accounts and see your high credit limit, okay?
Here's why let's say for example you have a high credit limit of two hundred dollars
And you went to it was let's say it was Walmart
And you went to Walmart this weekend and bought groceries and podcasts, and he used
$180 of it. Let's make it simple you used $200 you maxed out
And it's not that hard to do when you're buying groceries in gasoline
So now you have a two hundred dollar credit limit
And you just racked up a two hundred dollar bill at Walmart
Okay, so we're maxed out we owe a hundred percent of what we owe
Or I take the bet on our high credit limit so our high credit limits two hundred we owe two hundred okay?
Here's what I want you to do go through all the revolving accounts you have
call each one of them and
ask for the highest limit you can get
What I'm not saying is go out and spend that
Okay, I don't want you to get into any more debt
Here's the tactic that we're going after okay, we owe
$200 on that account
Now that credit now Walmart say for exists in this example. They increase your line to $1000
Okay, you went from owing a hundred percent?
Now to 20 percent of your high credit limit. You're going to pick up points
Now it might be a substantial amount of points
Let's say you have five six seven cards and every one of them does that
You're gonna pick up a lot of points by doing nothing other than
getting your
factual credit report calling the
Accounts that you have now you didn't go into any more debt on those accounts
You just got your credit limits increased
Okay, that's number one number two what I want you to do is start paying your account whatever you can
Or whatever you would have paid anyways. I want you to start paying in a couple weeks early. Here's why?
When the credit room when that creditor reports your information to the credit bureau?
It's usually it revolves around a cycle or your billing cycle
Okay, so if you wait till the last piece of that billing cycle when they're gonna shoot out another
Cycle on you another bill on you. Let's say for example the billing cycle goes from 15th or 15th. Okay, so whatever your balance is
Probably midnight of the 14th is what that balance is gonna show on your next statement as well as the credit report
Okay, however we pay that account off or way down a week or two early
Now what's coming up is when they report to the bureau on that billing cycle date
Instead of it having you know that your payment not being posted yet your has been posted
So now instead of you owing maybe $200 on that
Walmart account you paid it a week or two early now that balance is zero
You just picked up another huge amount of points by just paying your account back
Maybe a week or two early, okay, so those are two big
Tactics that you want to do okay, so let's say that
You can't get any of your credit lines increased
another big
Tool or tactic you can use is called piggyback
Ask your mom dad brother sister
somebody if they would allow you
to become an authorized user on their account they
Might not even give you a credit card on that account but ask them to put you on the account and they can take you
Off at any time with one simple phone call to that creditor
That then will now represent on your credit report all the history
They have and make sure that that person has great credit on that particular account as well
What you might want to do?
Also is check with your let's say your mom or dad does this for you?
See if they know if that creditor reports to the credit bureaus because if they don't it's really irrelevant
But if they do that's a that's a big piece of that. That's a big step to take okay, so that's that
new accounts one of the
Myths I guess about new accounts is a lot of people think that you know if I if I go out there and get into
account
It's going to automatically drop my credit rating
It might but in most cases. It's not going to be or not going to be dramatic
You need to have a variety of credit
So a good scenario is a credit card a car loan a student loan a mortgage if you can get a mortgage
You know a finance company and things like that you don't want to just have two
visas
You want to apply in a variety of?
Stores you want maybe a MasterCard Visa a Walmart account a car loan
You know these are things to build up as you're young and as you through go through time
so those are areas you want to get a
Variety of accounts now. I I just watched a video of a young man, who said he had I?
Think like two or three hundred credit cards worth like two million dollars in creditors. I
would not
By any stretch of imagination ask you to do that
I'm just asking you to do these simple steps, and if you follow these tactics in most cases
You're probably gonna pick up at least a hundred points plus, okay
Here's another area that a lot of people shoot themselves in the foot
Collections and paying them off
Okay, here's we're gonna go back to that true credit report that you got at the beginning of this to give us our
Benchmarks what we're gonna
Do is we're gonna go through there and look at any collections, so let's say you have a medical collection
We're going to look at we're not gonna look at the balance at this point because basically the algorithms of the credit system read
That it is a collection
last active date
Okay, so what we want to do is we want to check that last active date
If it's I mean, it's it's 2018 right now. If that last active date is 2018
You're most likely gonna have to settle and pay that off, and I'll give you some tricks on that in a second
But if it says 2010, I don't want you doing anything, okay? I don't want you paying it off because by paying it off
It's good and just going to take that most recent
Transaction date and change it from 2010 to 2012 your scores are gonna. Go down, okay?
That's another area where a lot of people
get misinformed so we want to see your last active dates and
Then closing accounts. I don't want you closing any accounts
Especially if you don't have a lot of accounts and what I mean by a lot of accounts
Let's say 10 creditors
If you have three four do not close any accounts if they're charging you a couple hundred bucks some a year to keep them open
You might want to think twice and maybe even keep those open if you only have a couple creditors
But if you have you know ten or twelve go ahead and close
so
In conclusion what I want you to do is get your credit report, so we know our benchmarks
and then we want to go through the
Your high credit limits call and get those upped
We want to go through your
Collection accounts see when their last active we want to see if you have very limited credit
You can't really get any more if mom or dad will let you
Become a an authorized user and then count don't even add give you a card if they want to play that safe
Don't pay off any collections. We're gonna check those those dates on when there's those transpired
So these are huge tips that I I just I asked you to spend maybe thirty dollars on getting your credit report
That's it so again
What I'll put I'll post down below a website that I want you to go to you can get a free report once a year
But I would strongly suggest you you click the my FICO tab down below you order your own credit report to give us that benchmark
Also, if you have collections judgments a lot of misinformation on your credit report and things like that
Down below is a link to a company
That's triple-a in the Better Business Bureau and they can help you their job is to help you get your get those miscellaneous
That bad information off of your credit report and get you on to a better path
So I hope you like this video again
If you do please subscribe below, and if I can be on any help my information is down below, but you can reach me
I'm in the Chicagoland area
Again, my name is Dan Frio my phone number is six three
Oh three three eight eleven sixty you can find me on the web at the mortgage update dotnet
And you can just google dan Frio, and i'll come up all over the place
I've been doing this for over almost 30 years now
So I want to thank you so much for watching this video and please leave some comments below. Thank you and God bless
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