How to Boost Credit Score FAST
In this video I talk about how to boost credit score fast, how I earned a 594 credit score and how I was able to increase it to a 701 within two weeks. Two things were clear, I needed my credit score explained and I was in desperate need of credit repair, and I set out to learn how to improve credit score and how to get an immediate credit score increase.
Unfortunately, prior to the realization of my low credit score, I didn't realize what into a credit score and how the scores were determined.
In real estate investing, credit scores are extraordinarily important, especially if you're looking to take advantage of the power of leverage.
Here are what credit scores are comprised of:
35% - Payment History: NEVER MISS A PAYMENT
30% - Credit Utilization: Just because you have a $10,000 credit limit DOES NOT mean that you need to use it! This makes up 30% of your score, and you should never use more than 30% of your credit limit.
10% - Inquiries: Looking for credit too often is a red flag to lenders. Fortunately for real estate investors, this only counts for 10% of the score.
15% - Length of Credit: The ideal age of all of your credit accounts is greater than 7 years. I think this has a lot to do with the fact that late/missed payments fall off your report after 7 years. So, the best bet is to get credit as early as possible.
10% - Total Number of Accounts: The more open accounts of credit you have, the better. You also need to have several different types of credit accounts; mortgages, auto loans, home loans, credit cards, lines of credit, etc.