Hack Your Credit Score To Nearly 800

Daniel Rosen  00:00

Hey, credit heroes. Credit Repair is not a mystery. It all boils down to one single number, the credit score. Now we've all heard those wild claims on the internet, the people who say they can get your score up to 75 or 100 points and in a month or a week or a day. And is that even possible? Yes, it is possible, but you need to know how it works. So today, I'm going to break down the five parts that actually make up your score. And then I'm going to share with you my secret hacks to boost your score by up to 100 points or more very fast, so you better stick around. 

So the big question is this, how can we take our passion for helping people with their credit, and turn it into a successful business without taking loans without spending a fortune by bootstrapping it from nothing? So we can help the most people and still become highly profitable? That is the question, and this podcast will give you the answer. My name is Daniel Rosen, and welcome to Credit Repair Business Secrets. Okay, before I dive in if you are new to my podcast, be sure to click the subscribe and turn on notifications so you don't miss a thing. And if you want me to hold you by the hand, as you launch your very own credit repair business, go to creditherochallenge.com, where I will walk you through the proven process that has created millionaires and changed millions and millions of lives. That's creditherochallenge.com Oh, and one more thing. I have been getting such amazing feedback from so many of you about this new thing that we started doing, where every episode, I feature one of our credit heroes, who has shared their own success in our Credit Repair Cloud Facebook community. And I want you to be able to see what real people are doing as they launch and grow their business. 

So after just a year, since she started using Credit Repair Cloud, Tessa Farley has officially fired her boss, she has enrolled an amazing 200 clients already. She is a real credit hero and I know she is unstoppable. And guess what? So are you my goal for every one of our credit heroes is to live the dream and change a whole lot of lives. So let's get into this. The big question is, how do you boost a credit score up to 100 points or more? How do you do that really fast? And what is the secret? Well, if you've been around Credit Repair at all, you already know it takes time, persistence, pressure, and an equal amount of cooperation from your clients. And as a credit hero, you could be working nonstop seven days a week sending dozens of dispute letters every day, and doing everything in the right way. But if your clients don't do their part, to lower their debt and pay on time, then they could find themselves back at square one. So it really is a team effort and a partnership. But what if there really was a way for you to get a major 100 point increase in just a matter of a few days? Is that even real? Well, the real answer is yes. Yes, it is really most of the time, here's what you need to know here. Come on, follow me.

There are only five points to a credit score that you need to know to get started. Okay, those five points are payment history, credit utilization, length of credit history, revolving credit and installment loans, and recent activity and inquiries. So let's break down those parts. 35% of your credit score is tied to your payment history. So that means that any late payments so you have a piece of really, really bad news now 30% of your score is tied to credit utilization. And that means how much you owe across all of your accounts compared to the amount of available credit and how you use it. Okay. 15% of your score comes from the length of your credit history. So if you always pay on time for a long time that's gonna help your score a lot. Okay, 10% of your credit score comes from revolving and installment accounts, it's very helpful to have a mix of those like retail and credit cards and a mortgage or a car loan. Okay, you want to have a mix. And then 10% comes from recent activity and inquiries, like trying to open up a whole lot of accounts in a short period of time. If you do that, it's going to lower your score. Okay, so let's talk about payment history. Did you know that just one recent late payment can cause as much as a 180 point drop in your credit score? Yeah, that's right. So here's what this means to you, let's do the math. Let's say you have a credit score of 720. But then you miss one single payment will, depending on the severity of that late payment, your score may drop all the way down to 540. And collection agents are going to come after you. But that's not even the worst part when a credit card bill comes due and you don't have the money to pay it. You are also charged a late fee. And on top of that, there's interest to pay, and this all starts to snowball, and it's going to put most people into a late payment debt spiral. See, they love it. Banks love it when you miss a payment. That's where they make their money, because then you owe them even more money, and they can raise the interest rate as well. So this is really how the credit system is designed to hurt people. And this is why the poorest people always pay the most. It's a terrible, terrible system. 

And here's another dirty little secret that people new to credit repair may not even know about it is utilization. Okay, when you are running a credit repair business, and you're signing up more and more clients, the biggest issue that you're going to run into is your client’s debt. Because nearly everyone is overextended and living on debt, and someone who owes a really big chunk of their maximum credit line, they're going to see a negative impact on their credit score. And this can be true, even if they're paying off their balance every month. Now here's what I mean. About 165 points can be deducted from your score. If you're maxing out your credit cards. Now you can figure out your credit utilization rate by dividing your total credit card balances by your total credit card limits. I recommend keeping your overall credit card utilization down below 30% of the entire credit line. So that means never using more than 30% of your available credit line. Even if you pay the bill off in full every month, lowering your credit utilization. It lets creditors know that you can use your credit responsibly without relying too much on it. That's why the scoring system rewards you if you can get your credit utilization down below 30% And never go above it. If you can do that your score will increase a lot. 

And now let's talk about age. Okay, the age is the length of the credit history, about 80 points come from the age of your accounts. So the longer you have your accounts, the more points you're going to have. And in a minute, I'm going to show you a little insider secret to really boosting that part of your score and it is going to shock you. So now let's talk about revolving credit and installment loans. Revolving accounts are another massive part of every credit report. And if you want the highest score possible, they are very, very important. So you may be wondering, what does revolving credit really mean? Well, it means you're given a credit line with a limit and you can charge purchases up to that limit. Also, you pay interest on the balances that you carry. And then as you pay it down, you can reuse the available credit again and again. So what's the difference between revolving and installment accounts? Well, revolving accounts have a different payment every month, depending on your current balance. You don't like it like a credit card, and you're not required to pay these accounts in full every month. Instead, you have the option to revolve some of the balance to the following month, and then lenders charge you interest on the amount that you revolve. And then installment accounts are accounts that have a fixed payment for a fixed period of time, like a mortgage or a car loan, and they do not require you to pay the loan in full every month. Instead, you make a payment, that is the very same amount every month until the loan is paid in full. Now lenders charge you an annual percentage rate, which is known as the APR, which is how they make their money. In fact, you need to have a healthy mix of both revolving and installment lines, because they make up 10% of your score and 55 of the credit score points. They come from your account types of revolving or installment loans. Okay, now let's talk about credit activity, recent activity, and inquiries. When you have your credit pooled, it could be for a loan or a car, or mortgage, or a phone application. Or sometimes even when you're applying for a job or getting insurance, or you're trying to rent an apartment. When you do that, and you fill out that application, a hard inquiry is placed on your credit, and each hard inquiry, it dings your credit score. And this is important because 55 points of your credit score, it comes from your recent activity like inquiries. Okay, so now, now you know the five points of a credit score. 

So what can you actually do to take control of them and make them work for you? Well, right now I'm going to show you how you can hack your way closer and closer to that 800 score. So let's look again here at payment history. Now 35% of your whole score, the biggest chunk to worry about is your payment history. If you or your client don't have a long payment history, then one of the easiest ways to get a big chunk of that payment history added is by something called piggybacking. And basically piggybacking is all about inheriting positive credit history from your spouse or a family member. And I've done podcast episodes on this in the past, it's as simple as finding a really old credit card with perfect payment history, and then getting added as an authorized user, you can even get added as a joint account holder. And once you're added, voila, you've just added 5, 10, 15, or even 20 years of positive credit history. And just this technique alone, can quickly add 100 or more points to your client’s credit score. And it can even do more than just add a solid payment history. It also helps credit length, okay, which makes up 15% of your total score. And while we're talking about that, in general, while there's not much you can do to increase the actual age of your existing accounts, there is one other hack that can help you to accelerate it. Did you know that you can build credit by reporting rent and utility payments? Well, you can. It's a little-known secret, and it's really, really easy. Nearly everyone has utility bills like gas and electric and phone and internet and the majority of credit repair clients, pay rent, over 43 million people in America pay rent. So if you've been paying rent for longer than the age of your accounts, just go to rentalkarma or rentreporter to add up to two years of age based on your rental history. Okay, let's get back here to utilization. Ideally, you should get your credit cards down to below 30% of their total credit limit. Now you may not be able to pay them all off. But did you know that there are options out there that will approve a high-limit account? Even if you have bad credit? Yes, there are a bunch of them or there are companies like AG jewelers that will give you a $10,000 revolving line of credit and they report to all three credit bureaus. So by getting a big credit line It makes it look like you have more available credit. And that makes the scores go up. And as soon as you open the new high limit account, the scoring model takes that new high limit low balance account into consideration. And then suddenly, the overall utilization across all the cards, it decreases. This is a very cool hack to drop your utilization, it doesn't change your payment, but your score goes up. And then finally, hard inquiries.

Did you know that you can legitimately get an inquiry removed within 24 hours? Yes, it's true. All you need to do is physically call the companies that placed the inquiries, you call them on the phone and demand the removal of that inquiry. And this is all done over the phone, it's done swiftly and without ever writing a letter or buying a stamp. Now keep in mind, there are two restrictions that you need to be aware of. First, most companies require the actual consumer to call if you're calling on behalf of someone else. Or if you let them know that you're with a credit repair organization, it's not going to work, they will only talk about this information with the actual consumer who has the inquiry on record. And then second, you've got to provide them with a legitimate reason for removing the inquiry. And usually, they'll only remove the inquiry if they pulled a credit report without authorization without approval. Or somehow if it was a fair credit reporting act violation, you have to get hard inquiries down because remember, each one can cost you about 80 points, and then they're going to stay on your record for 24 months. And they're going to impact you for 12 months. And that's all there is to it. Pretty cool, right? 

So here's what you need to know, these easy steps will increase a credit score fast, and they will help your clients to their desired end result. Now, of course, they'll need to continue to pay their accounts on time, they've got to stop applying for things, they've got to keep their balances low with a mix of accounts and make sure that they don't close any accounts. Okay, you need to keep the accounts open, because you need that history. And finally, continue making wise financial decisions. And that will continue to raise the score. And remember, this all takes teamwork. So keep the pressure on keep disputing the negative items and gradually keep cleaning up the mess while teaching your clients to add positive history. And then soon enough, all of everyone's hard work comes together and boom, another life has been changed. 

So now you know my secret tactics to boost a credit score by 100 points or more. And for more secrets, watch more episodes of my podcast. And one more thing. If you want to get certified in disputing and launch your very own credit repair business over just a couple of weeks, I want to invite you to join our credit hero challenge. It's an amazing program that has helped tonnes of credit heroes to get their first clients to get certified in disputing and to gain confidence, knowing that they are launching their credit repair business on a solid foundation that enables them to grow and scale fast. Now we're starting again very soon. So you want to sign up right now at creditherochallenge.com. And don't forget, if you love this podcast, and if you love the secrets that I'm sharing with you every week, well then smash that subscribe button, share this with your friends and all be very, very grateful. And be sure to leave me a comment because I read each and every one of them. And I will see you in the next episode. And until then be a credit hero and keep changing lives. 

Hey everybody, it's Daniel again. And really quick. I'd like to invite you to join what I believe is the best thing we have ever created inside the Credit Repair Cloud Community. And it is a challenge that we call the credit hero challenge. If you're just planning out your business or you're just getting started, and you dream of having a successful business of your own, so you can quit your nine to five and fire your boss and have financial freedom or so you can add another revenue stream to your existing business. If that's your dream, you need to get into this challenge. We created this challenge to help you to create and launch Your very own credit repair business to build a proper foundation for a really successful business. This challenge is going to help you to understand the strategy, the tactics, and all the things you need to be successful at credit repair. It really is the greatest thing we have ever built, and it will change your life. So I recommend you do it right now.

Stop everything, pause this audio, go online and go to creditherochallenge.com That's creditherochallenge.com and join the next challenge. And there's a challenge that starts in just a few days. So go get started right now at creditherochallenge.com