The American economy is built on one word: credit. This means that if you are going to enjoy everything that life has to offer when it comes to buying a home, vehicle, being approved for personal loans and more, you have to take your credit scores very seriously. For some of us, we may want to take out a new mortgage; some others may just want to get the latest iPhone. Whichever group you fall into, know someone is going to run your credit report. The great news for you today is that by the end of this article, you’ll discover the quickest way to increase your credit score.
But first, we’ll briefly discuss a few credit basics. You’ll see how all of it fits together and discover the quickest way to increase your credit score.
Why You Need a Good Credit Score
Some may think it is okay to just “get by” when it comes to a credit score. You know, somewhere around 650 where you are not exactly doing too bad but you are not doing that great either. At that level, you may convince some banks to give you a loan, but the rates are going to be a little higher than normal. Listed below are a few reasons why your credit score is so important.
Your Credit determines where you live: Many property owners determine who to rent their houses to by running their credit scores. If you have a bad credit score, it will be more difficult to not just buy a house but rent one as well. Most mortgage lenders want to know that you won’t default on your payments before they will consider giving you loans. Your score will also determine how much interest you have to pay on your mortgage. I know you may be thinking, “Well I’m not looking to buy a house anytime soon.” However, bad credit can hinder your chances of renting a good apartment as well.
Good Credit gives you more negotiating power: If you have a good credit score, you are better positioned to negotiate for lower interest rates. On the other hand, if your score is low, lenders will be less likely to negotiate lower rates.
Good credit gets you higher limits: While good credit is not all you need to get approval for higher credit limits, it plays a large part. Your credit score is proof that you have a habit of paying your debts on time. This will give banks and lending houses comfort over your likelihood of paying back.
Good credit means you may not have to pay security deposits on utilities: Establishing a new utility service may be a chore especially when you have to pay those outrageous security deposits. However, if you have good credit, you most likely will not have to pay a security deposit when you want to register for a new service or transfer your service to a new location.
Quickest Ways to Increase Your Credit Score.
Now that you have all the info on why you need good credit, you may be thinking, “But my credit score is already messed up, how can I fix it?” Well, you are in luck because that is exactly what we are going to be discussing in this post.
One thing to know before we get right into it is that bad credit does not go away overnight. It is not built with one late payment and it cannot be fixed by making one timely payment. However, there are a few things you could do to bring your credit score up.
Clear out your credit: To increase your credit score, you need to find out everything that’s making it low in the first place. So first things first: request a credit report from any of the big nationwide credit reporting companies. When you receive it, you can choose to print it out or have it saved on your computer so you can have easy access to it. Now get to work: Search for any payment default or late bills. If there are any discrepancies, you can raise a dispute with your billers. By clearing out all defaults, you’re already on your way to a better score.
Pay your balance and reduce your utilization rate: If you have any outstanding payments on any of your credit lines, you can lower them to help your utilization rate. Thirty percent of your credit score is determined by how much you currently owe. Paying off your balances should help your credit score. In addition to that, you need to work on reducing your overall balance. If you have a credit limit of $6000, try not to max it out every month. If you are going to keep a higher credit score, you need to keep your utilization below 30%. That means, if you have a limit of $6,000 on your credit line, try not to charge more than $2,000 to it.
Become an authorized user: This by far is the quickest way to increase your credit score. If you don’t already know, an authorized user is someone who has been added as an authorized user to another person’s account (usually someone with great credit). Once you are added to the account, you adopt the credit history of the account owner. Now if that history is a great one, it will dramatically improve your own credit rating. Here’s why: your credit report will show all the accounts on which you’re authorized. Being added to a tradeline with excellent credit history is a great place to start raising your credit. While it is more common to reach out to friends and family members to add you to their accounts, if you don’t have that option, you can always purchase a tradeline. By purchasing tradelines, you can in some cases boost your credit score by 100 plus points in no time.
So if you’re thinking your credit is too bad to fix it quickly, think again. There is an answer. All you might have to do is purchase a tradeline. Sign up for a free consultation to see if your credit can benefit from a tradeline.
With so many consumers confused about the legality of “authorized user tradelines,” Improve My Credit Fitness wants to set the record straight about how regulators and credit reporting agencies stand in relation to their use. This confusion stems in large part because they were put under the spotlight during the housing market crisis and financial meltdown of 2007-2010. While many people are under the impression that their use was banned as a result of the various banking-related reforms taken because of the crisis, regulators ultimately made no changes in their use. In fact, the use of such tradelines is perfectly legal as long as specific provisions are met when they are added to your credit report. Credit scoring companies continue to accept the addition of authorized user tradelines and the Federal Reserve Board and Federal Trade Commission did not enact any new regulations to prevent them from doing so.
What Is a Tradeline?
A tradeline is basically the specific line-item information about each credit account, with details about the name of lender, type of account, payment status, payment history, and other information highlighting the relationship between the lender and creditor. Credit reporting agencies use tradelines to establish FICO scores and assess credit risk. The addition of authorized user tradelines allows a creditor to “piggyback” on another creditor’s account in order to receive the benefits of that account holder’s good credit. Authorized users receive a copy of that new tradeline in their credit report when the bank or creditor reports to the credit reporting agencies. For example, when a parent adds children to their account in order to boost their credit when they enter the working world, or when a person adds their spouse in order to boost the overall household’s credit rating.
Who Can Benefit From Authorized User Tradelines?
There are three types of customers that can benefit the most from tradelines: 1- Customers who have little credit history; 2- Customers that are just getting started and have no credit; 3- Customers that might have gone through a rough time and have some derogatory items on their credit report. If you filed for bankruptcy or have had lots of delinquencies within the last two years, tradelines will not help you. Please sign up for a free consultation with us to ensure you qualify.
Creditors have long followed the practice of furnishing credit information about all authorized users to credit bureaus without distinguishing whether or not authorized users are spouses and/or children. Over the past decade, federal regulators have examined this practice to determine both whether such information should be disclosed, but also if authorized user tradelines should be omitted from FICO scoring completely. In 2007, as the mortgage crisis and subsequent financial crisis of 2007-2010 was heating up, Fair Isaac Corp., the developer of FICO scoring, announced that it was going to eliminate authorized user tradelines from its scoring system. However, after consulting with the Federal Reserve Board and the Federal Trade Commission, Fair Isaac decided to retain them, as their omission might be contrary to law.
For their part, regulators determined that omitting authorized user tradelines from FICO would be in violation of Regulation B of the Equal Credit Opportunity Act. Regulation B prohibits discrimination in any aspect of credit transactions on the basis of age, gender, ethnicity, nationality, or marital status. Regulators also decided that the non-disclosure of authorized user status does not violate Regulation B. Thus, no changes were instituted by the government. At the time, FTC spokesman Frank Dorman said that FTC legal staff had determined that technically the addition of authorized user tradelines “appears to be legal,” a sentiment that continues to hold to this day.
Is It Legal?
The end result as of today is that adding an authorized user tradeline to your credit report is not in and of itself illegal, but if you were to use such tradelines for the purposes of fraudulently obtaining a loan you have no intention to repay then it would indeed be illegal. Such nuances explain why the FTC spokesperson characterizes it as “appear[ing] to be legal,” and why the use of tradelines is authorized by federal regulators and accepted by credit reporting agencies.
In other words, utilize authorized user tradelines to boost your credit scores and improve your credit fitness, but don’t commit outright fraud with them. The addition of a fake authorized user tradeline, say from a false front company with a fake account; would constitute fraud. As might the use of false credit information in conjunction with securing authorized user tradelines, or the use of tradelines to secure a loan with the intent of never paying it back.
To help ensure the legality of the practice, make sure the actual addition of any authorized user tradelines is conducted by a reputable credit repair company, such as Improve My Credit Fitness. Make sure the company handling this for you is bonded with a $10,000 surety bond and that any payment you make will be protected in a trust account as required by Section 817.7005.
—Disclaimer: Improve My Credit Fitness cannot give legal advice and none of the above information should be construed as legal advice.
If you plan to purchase a home, vehicle, furniture, or even rent an apartment, there’s one thing you’ll need in order to be approved: good credit. However, according to a recent study of 220 million people conducted by VantageScore, more than 68 million people have bad or poor credit. The great news for you today is that if you’re looking for the best way to build credit fast, there is a tested and proven way to do it: authorized user tradelines.
What Are Authorized User Tradelines?
An authorized user tradeline is the process of adding revolving accounts – in good standing – to your credit report in order to increase your credit scores. All of your credit cards are tradelines, your car loan is a tradeline and so is your mortgage. This method has proven to be the best way to build your credit fast. As a matter of fact, according to the Federal Reserve, 30 percent of people with a scorable credit score have at least one authorized user account on their credit report.
And in case you didn’t know it, a credit score of:
580 to 669 is considered fair credit
670 to 739 is good credit
740 to 799 is very good
800 to 850 is excellent
So now that you have the numbers in terms of what’s good credit and bad credit; what all of this means is that many people with good credit had a little help taking their low credit score to a higher credit score by being added as an authorized user of someone with good credit. And if you’re like most people, the question you may be asking yourself right now is:
Is It Legal?
The short answer is yes it’s legal. You’ve probably heard of the FICO score. Well, FICO stands for the Fair Isaac Corporation. Just to provide you with a little background, in 2008, this organization, which is the creator of the FICO score, along with the Federal Trade Commission, went to Congress in an effort to have authorized user tradelines removed from being a factor on credit scores.
During the hearings, the Fair Isaac Corporation consulted with the Federal Reserve Board and the Federal Trade Commission, but in the end, changed their stance on authorized user tradelines thereby making authorized user tradelines legal, and since that time has proven to be the best way to build credit fast.
Why Waiting It Out Won’t Work
If you’ve ever had a credit card or loan charged off or go to collections, it is common knowledge that after seven years of no activity the account will fall off of your credit report. This is both good news and bad news. The good news is that the negative account is no longer on your credit report. The bad news is that it may or may not increase your credit score. A clear-cut way to increase your credit score is to have a revolving account that’s at least two years old and in good standing. So waiting it out for seven years for a negative account to fall off a credit report for most people is not the best strategy.
However, when you buy authorized user tradelines from a reputable company, you’ll be able to add a tradeline or account from someone else with good credit in order to boost your personal credit score, quickly and easily. In fact, statistics from a study of more than 1 million people conducted by the Consumer Financial Protection Bureau, shows that being associated with someone else’s credit accounts via authorized user tradelines is the best way to build credit fast.
Credit worthiness can be one of the single most impactful tools that people can use to improve their quality of life. A low credit score, in the long run, can make you lose hundreds of thousands of dollars and depending on your situation, millions over the course of your life.
How? Let’s start with some of the things you might have to give up. For instance: Let’s say you want to move to a nice house or condominium located inside a community. Most of these communities these days require a minimum of a 630 credit score. If you fall below, you will likely be declined. In addition, should you need a short term loan to make it through some rough times or even start a business, the door might be closed if you don’t meet a minimum score requirement. More recently, some national banks started declining new checking accounts due to low or no credit score. If the trend continues, how are you going to operate in an increasingly digital world?
How about the things you’ll pay more for? Consider your car insurance cost, electricity & phone companies asking for deposits, credit card, auto, mortgage and the long list goes on and on.
The question now is: What are you going to do? Are you going to let a number take all the amazing things you can enjoy today away and settle for much less while you pay ridiculous interests, or are you going to take action and change that number now?
If your answer was ‘take action’, keep reading.
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We offer credit piggybacking to improve your credit quickly – We have the right tradelines for your specific situation. Whether you need history, age or limit, we have it.
Free Consultation – We offer free consultation. You can submit a consultation request by visiting our website and filling out the free consultation form. Then, one of our credit specialists will contact you at the desired time and date.
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A tradeline is the specific line-item information about each credit account, with details about the name of lender, type of account, payment status, payment history, and other information highlighting the relationship between the lender and account holder. Credit reporting agencies use tradelines to establish FICO scores and assess credit risk.
Credit piggybacking is when a person with good credit adds another person in need of positive credit history as an authorized user to their credit card. The addition of authorized user tradelines allows the person in need of positive credit history to receive the benefits of that account holder’s good credit. This effectively happens when the bank or creditor reports to the credit reporting agencies and a copy of the tradelines is added to the authorized users credit report. A couple of examples are: when parents with good credit add children as authorized users to a credit card account in order to help them build credit, or when a person adds their spouse to boost the overall household’s credit rating.
Who can benefit the most from credit piggybacking?
If you are just starting and have no credit
Anyone with limited credit history
Someone who might have gone through some tough times in the past, but hasn’t had any recent derogatory items on their credit report.
If you filed for bankruptcy or have had several delinquencies within the last two years, tradelines will not help you.