How To Raise Your Credit Score By Up To 249 Points

If you need a higher score in order to qualify for a particular loan, or get a better interest rate, I hope you find this article written by Terry Price helpful.

While I do know the rudiments when it comes to what affects someone's credit scores (late payments, collections, maxed out credit lines, etc.), in the same way that mortgage advise is best left to a mortgage expert, I would rather refer people to true credit experts when it comes to raising one's credit scores.

Read and learn!

-Dez
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Insider Techniques To Raise Your Credit Score... FAST!

-by Terry Price
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If there is one question I'm asked by consumers more than any other about credit, it's this "What's the fastest way to raise my credit score?". My response is always the same "How much
do you want to raise it?"

If you wish to increase your score from 580 to 650 then your strategy will be very different from someone wanting to go from 670 to 725. Why? Because you starting point is different which requires a different approach. Also, while the removal of negative items from a report will almost always lead to an increase in score, it's a basic concept at best. Therefore, within this article, we'll discuss somewhat inside techniques known by very few (since this is what our company
specializes in publishing).

In relation to just removing negative items, these are techniques which you can use even if you have NO derogatory information on your credit report. We'll start with the most overlooked
strategy first and that's your...

DEBT to CREDIT RATIO: The most fraudulent belief I've been hearing for over 15 years is "I have excellent credit, I pay all my bills off in full every month!" This is a false belief for one to buy into and understanding your debt to credit ratio holds the key to getting your "credit mindset" right.

Your debt to credit ratio is your ratio of debt to total available credit you have been extended (revolving accounts only). For example. If you have $10,000 in total unsecured revolving credit accounts and you're currently in debt $2500, then your debt to credit ratio is 25%. Since the main way lenders make money is by charging interest, one of the elements of the credit scoring model is driven by your ability to maintain balances and pay over time. This shows your true (long term) credit worthiness which is most profitable to lenders since they make money primarily via interest and not annual fees.

Over the years we've discovered without question that carrying the proper debt to credit ratio will boost your score faster than paying off your bills in full each month. I have argued with the Better Business Bureau on this topic for and they still disagree (despite my sending them proof
from Fair Isaacs own website http://www.myfico.com/ the organization which invented the credit scoring software used by credit bureaus).

Of course, what do you do if you're like most Americans and your debt to credit ratio is too high? For example. You have $10,000 in unsecured revolving accounts but you owe $8500, thereby
giving you an 85% debt to credit ratio. How can you bring it down without selling everything you own? The answer is simple and takes us to the next technique which is...

SUB-PRIME MERCHANDISE CARDS: The single most cost effective (and powerful) tool for consumers to increase their high credit limit and decrease their debt to credit ratio is the use of Sub-Prime Merchandise Cards which report to one of more of the major credit bureaus.

Unfortunately, despite their immense benefits, these are the most misunderstood cards in the credit industry. A large portion of the misunderstanding is due to marketers misrepresenting the cards and the growing number of companies promoting them. When you learn how they work one quickly understands why they have been the subject of much misrepresentation.

A Sub-Prime Merchandise Card is nothing more than a card attached to a line of credit which allows you to buy merchandise from a specific vendor (usually the company that sold you the
card). The merchandise (in most cases) will be purchased through a catalog or online mall.

Where the problem arises is that the cards are marketed almost exclusively to the sub prime market via email, telemarketing and direct mail etc. The reason for this is they can advertise
almost irresistible offers like "$5,000 Credit Card... GUARANTEED! No Credit Check! NO Cosigner! You cannot be turned down!" or "Unsecured $10,000 Credit Line! Everyone Approved!". I'm sure you get the idea...

While there are many companies which do this and are a "shady at best", there are a few which do it legitimately and it's the best kept secret to build your credit and build it fast.

Here's how it works: the company approves anyone with a pulse (literally) and gives them a card for $2,500 to $12,500 with NO credit check and NO cosigner. However, the card is only good for merchandise through their website or catalogs and the consumer is required to put down a deposit on whatever they purchase. After the deposit is paid, the remaining balance is financed on the card.

For example. A person buys $1,000 worth of merchandise. Their deposit is $300 so they then finance $700 on their merchandise card and make payments. Sound like a scam? If you say "Yes" like most people then you're missing the point... big time.

With a legitimate Sub-Prime Merchandise Card your credit line WILL be reported to at least one major credit bureau (or more). This means if you get a $5,000 card and you finance
$500, on your credit report it will look like any other credit card and will do three extremely important things for you.

1.) It will increase your current "High Credit Limit" by $5,000 almost overnight as the account "looks" like any other unsecured revolving account.

2.) By carrying a small outstanding balance it will positively impact your credit report by building and showing potential lenders your credit worthiness.

3.) With a good payment history you are virtually guaranteed to receive "legitimate" pre-approved credit offers in the future due to other lenders renting your name from the credit
bureaus.

This technique is hard to beat for both cost and effectiveness. Of course, the whole key is knowing exactly which cards report to the credit bureau and offer the best rates.
Since this is such a loophole, I am sad to say it could be gone at anytime.

PIGGYBACKING: Despite its' virtually unlimited potential, piggybacking is not used by nearly as many consumers as it should be. It's easy, effective, and extremely fast. Unfortunately,
it's mostly used among parents and siblings while those who can really benefit stay in the dark.

How it works. Almost every credit card or credit account will allow the primary account holder to add on (at a later date) what's known as an "Authorized User" or "Secondary Account
Holder". In most cases, when this is done, the entire account history (retroactively) gets posted to the authorized users credit report regardless of their current age or credit history!

For example. If it's a credit card with a $10,000 limit which has been paid as agreed for the last 10 years, then that complete history will be posted to the authorized users' credit report. I once saw a clients' credit report who used this technique with his mother. He was only 24 at the time and he had a $15,000 Gold credit card on his report with history going back 11 years! I laughed as I thought to myself that this kid would have had to be approved when he was 13 years old
for this account to be his!

As you can see, this strategy is usually only used by parents and their children and in most cases with no regard to the benefits the children are reaping credit wise! In fact, in recent years, due to its' effectiveness, this technique has led individuals with excellent credit scores to "rent out" authorized user accounts on one or even multiple credit cards in return for a fee! I once recall seeing an ad in USA TODAY for just such an opportunity. Like most good credit loopholes, I'm sure this methods' days are numbered much like what may be the case with...

ADVANCED CREDIT PROFILING: This is a strategy while not complex, can be taken to very complex levels. Even in its' most basic form, it's taken advantage of by very, very few. It
involves intentionally building your credit report in a way which creates a "profile" that closely fits the criteria of most lenders (as well as the overall credit scoring system). Again, this is a technique which can be used in a myriad of complex ways, but for simplicity I will explain it in
its' most basic form.

While many consumers will boast when they have 10, 20, 30 or even 50 thousand dollars worth of credit cards on their report, many of these same people do NOT have even one mortgage,
automotive loan or lease, equipment loan or a even a line of credit with a local bank or credit union. These other forms of credit create a much more well rounded credit profile for the consumer. This is achieved by showing greater credit account diversity and experience with multiple types of credit due to the various lines held.

For example. A person with $50K in credit cards does not represent near the credit experience as a person with the same $50K along with a mortgage, an automotive loan and an equipment lease. We have clients who have financed vehicles not because they had to (or even wanted to) but because they "needed to" in order to create a credit profile that would position them in the
future to secure the lowest possible rate on a mortgage when they applied and needed it.

More complex forms of Advance Credit Profiling involve one subscribing to affluent or semi-affluent business and professional publications and organizations. These would include
magazines, newsletters, trade journals and national associations. The goal is to get ones name into the databases of these publications and organizations. Why? To get on highly targeted lists
in order to receive select credit offers.

Marketers of credit offers have found that simply renting names of consumers from the credit bureaus does not provide enough information about the person as a credit risk anymore.
Therefore, it is speculated that many will rent a list from the credit bureau and then cross-reference this list against another list they have secured from a consumer source such as an
affluent business or professional publication, trade journal or organization.

By crossing the two lists together the marketers find the names contained on both lists. This in turn provides them with one highly refined and targeted list to mail their offer to. This results in shortening the process of securing a new quality account holder thus lower the overall account
acquisition cost of new accounts.

When a consumer learns how to intentionally put themselves into these databases to wind up on these refined lists, the credit building process is sped up exponentially. Of course, many would call this "highly speculative" but we have undeniable experience that it works.

DEPOSIT LOAN PROGRAMS: This is a technique so unbelievable that I myself proclaimed it had to be a scam before researching the facts. It allows the consumer (or business) to have a
$25,000 to $250,000 loan appear on their credit report as "Paid as Agreed" by way of very creative financing. This method is extremely effective and not within the budget of most ($750 to $7,500 upfront). Also, because this technique takes advantage of certain banking laws, I have reason to believe it could be made unavailable at any time if those banking laws were to change. This method can be used with consumer credit files on SSN's as well as business and corporate credit files done on TIN's as well as Dunn and Bradstreet.

In the end, all of us need to remember that today our credit score is more important than it has ever been in the history of the credit reporting system. While credit miracles don't happen
overnight, you can create your own credit miracles by applying simple insider strategies consistently over time. Before you know it, you're a proud member of the 700 Club. The "700
Plus Credit Score" club that is!

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The "CREDIT SECRETS BIBLE" has been in print since 1994 and is published by Consumer Publishing Group. For more information on the "CREDIT SECRETS BIBLE" click here.
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Let Lexington Law Fix Your Credit Issues

You were only seven days late on your mortgage payment but your lender slapped with you with a 30-day late. Your daughter took out a credit card in your name without your knowledge and bought some bling-bling. You screamed "Fraud alert!" but credit card company still claims that you're liable. Your cellphone got stolen and someone made an all-day call to Europe, and you got whacked with a king's ransom in overseas phone charges. Ten years ago, that hospital that told you to go home and take some aspirin and then slapped you with a $2,000 invoice a few months after for some procedure that you know you didn't have still has their medical collection on your record, ten years after the fact.

Things like these are what bring down your credit score, and you end up getting unjustly punished. You get hit with higher interest rates, or worse, get denied for a mortgage.

If you're like most people, you know how important it is to clean up your credit but either you don't know how to go about doing it or you just don't want to deal with it at all. If you fall in either one of these categories, my recommendation is to go to a company like Lexington Law Firm


The truth of the matter is, in the same way that mortgage pros know lender guidelines like the back of our hands since we live and breathe this stuff day in and day out, only credit repair companies like Lexington Law Firm
know whether you've got a case against the creditors or not. Plus, the fact is, nothing scares the pants off creditors like someone calling with 'Law Group' in their company name. You, on the other hand, will most likely get some eye-rolling, ho-hum reaction from whoever's on the other line, no matter if you yell and scream till Kingdom Come.

Lenders Catch On To "Buy & Bail"

A couple years ago, you bought a no-frills home with a yard so small a chihuahua would get claustrophobia if you let the little critter stay out there for too long. You thought $500,000 was such a steal, considering that there were ten other offers on it. Today, it's only worth $350,000.

Over the weekend, you find out that a much larger home down the street is for sale. It's got a yard that could hold a small country, and , and it's got all the upgrades that you could ever wish for. The price tag? $300,000.

"Hmmm," you say, as your mind races a mile a minute. If you're thinking that you could use your good credit to purchase a second home by telling the lender that you're going to rent out your first property and then let it fall into foreclosure once you've purchased the second one, think again. Lenders are on to what's known as the "buy-and-bail" and they've put new guidelines into place to safeguard against "buy-and-bail" situations.

Here are a couple of them:

• The borrower's current property has to have at least 30% equity in it.


• If the borrower has put their current property up for sale, and it does not close prior to the second property closing, the lender will require that the housing payment be included in the qualifying ratios unless one of the following exists: the borrower has a minimum two year history of managing rental properties verified through the most recent two years of tax returns; or provides a copy of the fully executed sales contract and the sale of the current home closes simultaneously with the subject transaction; or if not closing simultaneously, provides a copy of the fully executed sales contract, lenders commitment letter to the buyer of the current home, and verification of post close reserves sufficient to cover 6 months housing payments

Lastly, if you're thinking of getting an FHA loan and having just your spouse be on the new loan so that your debt-to-income ratios meet the lender's guidelines, think again. FHA guidelines require that the non-borrower spouse's debts be included as part of the total debt. The logic behind this is that the additional debt will impact the couple's ability to repay their mortgage.

There are several major changes to Fannie Mae guidelines that have to do with conversion of principal residence to rental property, as well bankruptcy and foreclosure seasoning requirements. If you'd like to get more detailed information about these new Fannie Mae guidelines, holla' at me!

Don't Go Out Looking At Homes Without A Preapproval

One of my Realtor partners, John Carlson, has a personality as big as the state of Texas. I'm sure that's partly why he's always in the top 10% of Santa Clarita's realtors.

It doesn't hurt that he definitely knows his stuff when it comes to buying and selling real estate, of course, but people will always gravitate toward someone who makes them feel immediately at ease and treats them like family.

The first words out of John's mouth when I was first introduced to him were, "You're really tiny." to which all 60 inches of me plus 3 extra inches by way of stilleto heels quipped, "No, I'm aerodynamic. I'm low to the ground."

He may have one joke in his hand and a dozen up his sleeve at all times but the one thing that John doesn't joke about though is a preapproval.

When he tells people time and again, "You're not getting into my car without a preapproval," he means it, and he's not alone. Any realtor worth his or her Open House sign wouldn't touch a prospective buyer with a 10-foot pole without a preapproval either, and why would they?

To be blunt about it, it's bad business to spend your time and energy on buyers who may not even be able to afford the homes that they're looking at. Not when the price of gas is $5/gallon. Not when you don't get paid unless a deal closes.

Unless you're a masochist and get off on having your heart broken, looking at homes when you have no idea how much home you can afford, or if you can afford it at all, is like going into a world-class spa to get the head-to-toe treatment, only to find out you only have enough money to get one brow waxed. You're going to fall in love with a home that you simply can't afford.

So, my advise is, get thee to a loan officer for your preapproval before you ask your Realtor to take you out for a drive.

8 Things You Should NOT Do When Applying For A Home Loan

This is a list of things to steer clear of when you are seeking to obtain financing for a home. The following items may prove to be a detriment when you wish to move forward with the loan process.

• Don’t buy or lease a car! Lenders look carefully at your debt-to-income ratio. A large payment such as a car lease or purchase can greatly impact those ratios and prevent you from qualifying for a home loan.
• Don't co-sign for someone else's car or home loan! When the lender pulls your credit, it could lower it. In addition, if the debt shows up on your credit report, unless you can prove by way of cancelled checks that someone else is making the payments, that debt will be counted as yours and it could affect your ability to qualify for a higher loan amount.
• Don’t move assets from one bank account to another! These transfers show up as new deposits and complicate the application process, as you must then disclose and document the source of funds for each new account. The lender can verify each account as it currently exists. You can consolidate your accounts later if you need to.
• Don’t change jobs! A new job may involve a probation period, which must be satisfied before income from the new job can be considered for qualifying purposes.
• Don’t buy new furniture or major appliances for your “new home!” If the new purchases increase the amount of debt you are responsible for on a monthly basis, there is the possibility this may disqualify you from getting the loan, or cut down on the available funds you need to meet closing costs.
• Don’t run a TRW report on yourself! This will show as an inquiry on your lender’s credit report. Inquiries must be explained in writing.
• Don’t attempt to consolidate bills before speaking with your lender! The lender can advise you if this needs to be done.
• Don’t pack or ship information needed for the loan application! Important paperwork such as W-2 forms, divorce decrees, and tax returns should not be sent with your household goods. Duplicate copies take weeks to obtain, and could stall the closing date on your transaction.
• Don't close any credit cards unless your mortgage consultant tells you it's okay to do so. Your credit score is determined by how timely your payments are, how much debt you carry, the type of debt you have (mortgage, car loan, major credit cards, etc.) and how long you've had credit. Closing credit cards- especially if you've had them for a long time- could potentially lower your score.