How do I get a great credit score fast? What is a good Credit Score Range

How do I get a great credit score fast?

This is an excerpt from my 2014 MSHDA – MI State Housing Development Authority speech in Lansing Michigan

Dave:  When loan officers come to me looking for advice to get borrowers on the right path to home ownership or they need to pull up the credit score a little bit. This is the secret I use to help them; this is the only way to improve someone’s score quickly and safely.

This is how I help people improve their score quickly without having anything negative impact their score either, a lot of time people will pay a collection and that will pull the credit score down. I will talk more about that in a second.  So if the balance to high credit ratio is to high that will pull the score down in some cases more than a collection will.

As an example if the credit limit is a thousand dollars and the balance is $1,100 that is 110% credit utilization and it is as bad as a collection. That situation of being over the high balance is really pulling down borrower’s credit score if they can pay that down to just 90 percent that score will improve.

The thing that people most often miss id if they just went from 90% utilization to 89% they will get more points than if they just stop at 90% utilization.  Many times that is just a few dollars to go down to the next percentage point.  So you always pick up points if you just go to the next percentage point down. So the same thing happens if borrowers get to 80 percent that is good but if they go down to 79 percent they get a few more points so why would you just go to 80 percent and not 79 percent?

So some people say that you should just pay your balances down to 30 percent. Those people don’t understand the scoring model because if they just went to 29 percent they will get an improvement in borrower’s scores, so that is what the “Credit Doctors” are telling you; pay your balances down to 30 percent or 50 percent? NO!

I want to get a perfect credit score that is my goal. Strange I know, but that is my goal. Most people want other things; I want a perfect credit score. Thought I would pay down my credit card below zero. So I have a credit balance on that credit card right that has to be better than a zero balance? That has to be good right? NO! My score actually went down; my credit score went down Because FICO looks at it like I am not using that credit card. Even though there is a credit balance it still counts it at zero.

So you don’t want to have your credit Cards balances at Zero if you want to get the highest score possible.  You want to keep them at five to nine percent. Any Questions on that? Did you ever care about that in your life until now?

Student:  Are you saying that you should pay your credit cards off in full every month?

Dave: Well there is the Ramsey version of that and then there is this… My way is if you want to get the very best credit score possible.  So I am telling you to pay your revolving balances to five to nine percent on the reporting date.  We will talk more about that in a min.

As soon as the reporting date is past, then you pay off the balance in full.

How do I get a great credit score fast?

If you’re looking for other ways to improve your credit score please go to GetLoanReady.com you can get free videos and worksheets to increase your credit score from a more holistic perspective. Never Pay Collections

If you want to see more videos about credit and credit scoring check these out at www.thecreditguy.tv. If  you are a mortgage lender please share this on your Facebook or LinkedIn page.   If you have any questions, leave them down below I’d be happy to answer them.

perfect credit score
  • Facebook
  • Twitter
  • Google Plus
  • Pinterest
  • Linkedin

7 secrets of a perfect credit score

Completely Free Credit Score
  • Facebook
  • Twitter
  • Google Plus
  • Pinterest
  • Linkedin
MyFico
  • Facebook
  • Twitter
  • Google Plus
  • Pinterest
  • Linkedin

Go to www.getloanready.com to find other ways to improve your credit score. I’m Dave Sullivan here for the credit guy TV so you with a little bit me we’re going to change the credit industry thank you

Why is my credit score different when a lender pulls it?

90% of Top Lenders Use FICO® Scores

  • Facebook
  • Twitter
  • Google Plus
  • Pinterest
  • Linkedin

How do I get a great credit score fast?

Comments

One response to “How do I get a great credit score fast? What is a good Credit Score Range”

  1. Elliot Cena says:

    thanks dude for sahring..

Leave a Reply

Your email address will not be published. Required fields are marked *

Pin It on Pinterest

Shares
Share This