Is it possible to quickly ( 72 hrs ) Increase your Credit Score ?

At some time in your life you will walk into a bank and apply for a loan or mortgage of some kind. If you live in the western world, the bank will invariably check a central credit agency in order to validate your ability to make payments on the loan that you are applying for. Your banker will tell you to relax, this is painless, as he/she reviews your credit score from the central agency. This will be the time when that critical purchase of a home or new car will cause you to silently say, Darn, I wish I knew how to increase my credit score. We have all been there and done that – some of us more times than we can count.

It seemed that everyone claimed to have heard a trick or two. Others said that constantly querying the credit bureau and challenging them to respond to you within 30 days or as mandated by law would result in the credit agency messing up and the matter being cleared based on a technicality. Truthfully, enough people mentioned the latter, that it appears that this somewhat unorthodox method may have some validity in a few jurisdictions.

The underlying thought process that most people have when confronted with this question is pay your bills on time and your credit rating will be great. But is this really true? We are going to call this myth number 1. So, let’s look at myth number 1. Loan institutions love people who pay off their bills on time every month. Ok, so I see huge bank profit in that model, right? If this were truly the case, how would a loan institution make any money? ha ha Loan institutions love people who maintain a balance that they can get charged interest on. And that’s the truth.

Ok, myth-ism number 2. Banks and Loan Sharks love people who borrow as much as possible. Really? If this were the case, people who couldn’t repay loans would get huge amounts of credit and constantly end up in repayment problems. Do I hear echoes of a well known mortgage problem in here? So perhaps this isn’t 100% of the answer either.

Could the truth be somewhere in between? Loan institutions love clients who pay something on their bills each month ( preferably just the interest and a little more – kind of like a show good faith on the balance… ) and whom appear to have the ongoing ability to keep their total loans significantly within the total allowed credit range – debt ratio. For example 20,000 in total credit available, 6,000 already used.

The key phrase here being “ongoing ability ” and “debt ratio”. Ongoing ability is why some older retired persons with otherwise good credit may sometimes have difficulty refinancing longer term loans. They are looked at as not having jobs per se and therefore while their credit may be good the ongoing ability (income) aspect might be perceived as being weak.

So from what we have seen here, the best Candidate is not just someone who has no defaults on their credit rating, such a person may get to 650 on the credit score but may not be able to get a credit score of 800 or more. It is expected that most people who have been working on improving their credit scores will have few defaults though not many. So the key issue for those looking to increase their credit scores from 600 to 800 leans more towards something else.

Chief amongst those other factors is the DEBT RATIO. If you want to have a credit score above 800 then you must have a debt ratio that is loved by the lending institution.

The absolute best candidate is someone with a credit to debt ratio which is not only low, meaning they have room to increase it, but someone who also has shown the long term ability to handle an ongoing balance – note that means not necessarily paying it off every month. Watch the video and learn not only what the bank wants to see, but how you can in the next few days influence positively your credit score. Once you understand the math, you are golden.

Going for a loan, Mortgage or rental. Increase your credit score first and get a better loan rate from your lender.