How 'Travel Hacking' Can Help Improve Your Credit Score. Scott Mackenzie, who writes the Hack My Trip blog. After opening six credit cards in one year. Learn how to hack your credit score so you can save. How to Hack Your Score. But there are two instances when I rely on my credit score.
. Lending conference and realized there was an interesting way you could 'hack' your credit score. Secured Cards can be. Also from Lazy Man and Money. Credit Score. 4 Credit Score Hacks. you should work on raising your credit score. It can. How Do I Dispute an Error on My Credit Report? What’s a Bad Credit. Hack Your Credit Score In Three. Helped me recover stolen funds from the fakes and also hack my husbands phone and facebook and all i can say now is i’m a lot.
Credit hacks dissected: Do these really work? you can get a mortgage with no credit score. so as to improve my credit score.
Hack Your Credit Score In Three Easy Steps [Infographic]My own personal credit score using the methods you’re about to learn.[Update]: Since I wrote this article, a lot of people have been emailing me asking for help executing the process outlined here. Unfortunately, I don’t have the capacity to do credit coaching at this time, however, if you would like additional help beyond what you see in this article, I do have a great recommendation for you.
I recommend that you grab a copy of Scott Hilton’s Credit Secret credit repair course. He will walk you through the step by step process of how to execute the strategies in this article, and will also show you several legal loopholes beyond the scope of what I get into here to accelerate what you learn here significantly. Check out the success stories on his website. This is legit stuff and can save you tens of thousands of dollars as well as open up a lot of doors for you in your future. Give that a look here, and full disclosure, if you do pick up a copy, Scott will kick back a portion of the sale to support Academy Success, at no additional cost to you of course. For Canadian readers, I recommend checking out Credit Repair Canada, which is dedicated specifically to Canadian credit law and has a great trial option.
If you’re not ready to invest in a course, I recommend you check out the ‘Getting Out of Debt’ and the “Bills and Expenses’ checklists that I offer in my Financial Automation Checklist Collection. They’ll walk you step by step through setting up those areas of your finances to become completely automated, so you can repair your credit on autopilot, while you focus on improving other areas of your finances. You can grab your copy of that here. В Just enter your email address and I’ll send it right over. Alright, let’s go ahead and get started. My Updated Credit Score.
As of the most recent update to my credit score in February 2. I carry a credit score of 7. This is a screenshot straight from my Mint. Not bad for a dude who is barely 3. Needless to say, if you follow the strategies I’m about to lay out for you, and from Scott’s course mentioned above, this stuff works Back when you were in your teenage years, you didn’t really care how to hack your credit score, because it didn’t really affect you. But now that you’re older and you’re looking at buying things like cars, big TVs, furniture, boats, and even your first or second house, having a good credit score is becoming increasingly more important to your finances. Personal finance training is becoming much more important.
The difference between a credit score in the mid 6. Just think of what you could do with an extra $3. Fund your retirement maybe? Hopefully that’s what you were thinking! But I don’t have to convince you that having a great credit score is a good thing.
You already know that. You want to know how to hack your credit score to. В the high 7. 00s and even the 8. The Formula to Hack Your Credit Score. I’ve used the strategy below since I was a undergraduate student to grab a credit score in the upper 7.
I’m not saying that to boast at all. I’m saying that because I want to help you get yours there as well. Trust me. This stuff works. I wish I could tell you there was a magic way to hack your credit score to the 8. While there are some ways to make significant jumps quickly, most good credit scores are established over time. But that doesn’t mean you can’t hack your credit score a little bit to get there in a more efficient manner. It always helps to know how things work!
First – Check out the infographic below for a few seconds, courtesy of suntrust. After you’ve given it a look, scroll down below it. I’m going to explain a little bit about how your score is calculated, and how each strategy in this post caters to increasing your score along with the rules of the system. Increase Your Credit Utilization Rate. First take a look at the section talking about credit utilization rate. If you read the fine print of what this actually means, it boils down to one question in the mind of creditors. How much debt does this person have vs.
Or, В total debt / total credit. This is an easy way to get an at a glance look at how responsible you are with the credit you currently have. This is called your Credit Utilization Rate and it makes up a huge chunk of your score. If you’re tapped out, your score is likely to decrease because you’re more likely to default on the credit you already have. Here’s how to improve your Credit Utilization Rate over time. Pay down outstanding debt with high interest rates (choose one, and go after it first)Negotiate a lower interest rate (this is doable with a single phone call)Increase your available credit limits (also doable with a single phone call)Avoid racking up additional debt.
Paying down outstanding debt is as simple as allocating money automatically towards your high interest accounts. Pay towards these accounts first so you don’t even have the chance to spend that money. This will help you take the emotional pain out of paying down your bills, making it much easier on you to accomplish. Negotiating a lower interest rate is usually fairly straightforward. All it takes is a call to your credit card company, a conversation telling them you have been focusing on paying down your debt, and a little persistence. They’ll usually lower your rate a few points which will allow you to pay your debt off even quicker. Increasing your available credit limits is also fairly simple.
Some cards actually allow you to do it online. Make your payments on time for a few months and get your account in good standing. Then simply call up your credit card company and ask for an increase. Do this every six months or so and over time you’ll significantly increase your limits.
A Word of Caution. Only do this if you’re a responsible spender. Don’t get a credit limit increase so you can spend more. В Get it with the idea in mind that it will help you hack your credit score to be higher for the long term, which will save you a lot of money in the long run.
This is not about getting you more money to irresponsibly spend. It’s about improving a key credit metric. Most of all, for this strategy to work, you have to avoid racking up additional debt. Do things like eliminating monthly expenses. В and making use of sites like Mint. Avoiding additional debt will help you in a lot more ways that just your credit utilization rate. These things combined will lower your total debt, while simultaneously increasing your total credit.
This will improve your overall utilization rate and thus give you a nice bump in your credit score. Expect this to take about six months to take full effect for double digit increases, but when it does, it will make a significant difference, so get started now. Clear Your Credit Report of Delinquencies.
See the delinquencies section? This section represents your payment history on lines of credit that you have. Strikes against your name are obviously bad in the eyes of creditors. Have you ever missed a payment for any reason?
Ever had anything repossessed, your identity stolen, a store flub and use your name when it should have been someone else’s? The fact is, you don’t know what is on your credit report unless you look. People make mistakes, and even if you have a perfect payment history, one of those mistakes might end up as a strike on your credit score. This has happened to me twice, and both times it was a mistake and was costing me double digits with my score. With this section making up a giant 3.
This might not be the most glorious task in the world, but it’s really important and it’ll only take you about 1. Here’s how: Check Your Credit Report for Delinquencies. Clear Your Report By Contacting Creditors.
Continue to Pay Your Bills on Time. Set Up Reminders to Stay on Top of Your Report and Score. By law, you are due one free credit report each year. You can get this at this address –В https: //www. To get your credit score, go to. В https: //www. myfico.
В – This site will give you a free trial normally, but it’s only about $1. Check this yearly to see where you stand. It’s always good to stay informed. And don’t fall into the trap of buying all 3 scores. They’re all essentially the same.
I’ve never seen anyone’s score dramatically differ between the three. Now, set up a reminder on your calendar once a year to get these once a year. It’s quick and easy and fully worth it.
Be careful not to go to the other credit sites you see on TV. They’ll give you the correct information, but then they’ll try to profit from you by selling you their premium credit monitoring services in exchange for your report. This is useless. Don’t fall for it. Fill out your information and complete the simple process to access your credit report. This will show you all of the lines of credit you currently have, and most importantly, will tell you if anything has been reported against you. This is what you’re looking for. What To Do If You Find Delinquencies on Your Credit Report.
I’ve actually had stuff on my report that shouldn’t have been there. Some from mail being lost.
Some from actual errors made in processing. But believe it or not, I’ve actually missed payments in my life too, and those appeared on my report. Here’s what to do if this happens to you.
Identify each item that counts against your score. Each one should list details next to it with contact information. If you find something that shouldn’t be on your report, simply contact a representative using the information provided and have a conversation with someone to get it taken care of.
Even if you have screwed up, you can often get items removed quicker if you prove you are on the road to recovery. Contact people at those places as well and talk to them about your credit repair efforts. Ask what you can do to get the items removed quicker and follow their advice. Write letters, make phone calls, send emails.
Be persistent with these places. Sometimes you might not get a response the first time.
How to Hack Your Credit Score. Would you rather: Save $1. В per year? Save $1,0. Go ahead, think it over. Consult with your family. I’ll wait. Grab this article as a FREE PDFGet the Free Guide[Taps foot. Looks at imaginary watch.]“I have a question, Paula.”Yes?“$1,0.
Yes. Um, that’s not a question.“Does saving. В $1,0. 45 require 8. В time, effort or hassle?”Great question, my invisible. В friend. The answer is no. The move that saves $1,0.
В per month (a pay rate of $1. How do I save $1. Order tap water instead of a $1 Coke when you’re at lunch.“And I can save $1,0. Yep.“Then. В I’d prefer Option B.”Great choice.
Now let’s talk about your credit score.“BOR – IIING! Credit scores? What a snoozefest.”В Hold it right there, buddy. Taking control of. В your credit score is one of the most crucial moves in.
В Mastering Your Money. The difference between a “Good” score vs. Excellent” score — as you’re about to see below — can save you $3. Whatever. Credit is Snooza- palooza.”В Okay. В Here’s a You. Tube video of puppies dancing to Gangnam Style.“Hehehehe. That’s awesome.”Now that that’s out of your system, are you ready to talk about saving. В thousands — not just a few measly bucks?“Alright, fine.
Hit me.”Let’s begin. Why This Stuff Matters. First, let’s chat. В about why credit is a crucial weapon. В in your Awesomeness Arsenal. This chart says it all: Read that column on the left like a report card: A, B, C, D and F. You might think that “Good” means “Good,” but it’s akin to.
В getting a “C.” It’s a passing grade —В barely. Anything less. В could knock you out of the running. And unlike your third- grade report card, which (ahem, let’s face it) doesn’t really matter in the real world (at least, not as much as they led us to believe it would), this “C” carries expensive consequences. In the world of credit, “Good” — rather than “Excellent” —В results in. В tens of thousands. В in additional interest over the life of a loan.
In the example above, Average Joe buys a. В $3. 00,0. 00 house. He slaps a 2. 0 percent downpayment onto the table, borrowing the other 8. If his credit score is “Excellent,” he pays $1. If his credit score is merely “Good,” however, he pays.
В an extra $8. 9 per month in pure interest, and shells out an unnecessary. В $3. 1,3. 66 over the span of his mortgage (hence the. В $1,0. 45 per year). Ouch. The moral of the story: Your credit score matters. Here’s how to improve it. Credit Basics. Five factors determine your credit score: 3. Payment History. This is self- explanatory: pay your bills on- time.
One single late payment can damage your score. Also, the longer you’re overdue (3. The best hack: Automate it. Set all your cards to “pay in full” monthly. If you can’t pay in full, at least auto- pay the minimum monthly.
Then quit using your cards until you can pay them in full.)3. Amounts Owed. This is the “trick question” of credit reporting. Credit bureaus look at your “debt utilization ratio” — how much you owe, relative to your total limit. If your credit limit is $1.
Ideally, you want to stay at 1. Here’s the catch: This ratio is measured by the amount you charge,В even if you pay your bill in full every month. In other words, you could be debt- free, pay $0 in interest, use your credit card as a proxy for cash — and yet. В still hold a damaging utilization ratio.
This is mega- important, so I urge you to re- read this paragraph. Don’t worry, you can work around this with two clever hacks: Ask your credit issuers to raise your limit. This organically drops. В your utilization ratio.
I ONLY recommend this for people who never carry a balance. Pay your bill weekly (or daily). I love getting credit card rewards, especially airline miles, so I charge everything. В to my card. But to make sure my utilization ratio stays ultra- low, I pay my credit card in full roughly once a week. This also naturally protects me from overspending).
If I buy a big- ticket item, I’ll pay the card in full that same day (sometimes while the charge is still “pending.”)I automate “pay in full” on every card as a backup —В a failsafe mechanism to preserve my payment history. Length of Credit History. This is also self- explanatory: the older your accounts, the better. Do you carry old credit cards that you rarely/never use?
I have an old student credit card, for example, that I opened when I was a college freshman. I don’t use it anymore because it offers terrible rewards.)В Don’t cancel these accounts; they skew your “average account age” to a more impressive number. The best. В hack: Keep a small recurring bill on these cards — like your Netflix subscription — and set up monthly auto- pay in full. Your account will stay open and active, and you won’t need to worry about a thing.
Credit Inquiries. Every time you apply for new credit, your score gets dinged.
Ironic, isn’t it?)Ideally, keep your number of new inquires to less than 2 per year. Account Mix. There are two types of credit: Installment — You pay fixed, regular installments. Examples: Mortgage, auto loan.
Revolving — You have an open line of credit. Examples: Credit card, HELOC.
All else being equal, lenders like to see a mix of both, and installment credit is more favorable than revolving. How to Hack Your Score (in Five Sentences)Are you familiar with the 8. This states that you’ll get 8. In other words, focus your time and energy on the most critical. В stuff; let go of the rest. Only three factors. В — your payment history, utilization ratio and average account age — comprise 8.
Focus on keeping those three things as awesome as possible: automate paying on time, raise your limits, keep old accounts open.(The 8. Principle, by the way, is why it’s fine to spend $1 per month on a Coke instead of tap water — as long as you. В move the needle in major ways. YOLO!)How to Check Your Score for Free. There are two things you should read: Your credit report and your credit score.
Three bureaus issue your credit report: Experian, Equifax and Trans. Union. Each will show you your report once a year for free. Here’s how to systematize it: Create three calendar reminders, spaced 4 months apart: January, May, September. At each 4- month interval, check your report (for free) from one of the three bureaus. It doesn’t matter which order, as long as you check it from each bureau once a year. For an easier hack: Go to annualcreditreport.
NOTE: Don’t go to copycat sites. If a website demands. В your payment info, run away.)This will show you your credit report, but it won’t tell you your credit score. Until a few years ago, it was next- to- impossible to see your score for free, but fortunately this has changed recently. There are a handful of websites that will (legitimately) show you your free score, without bait- and- switching you into some unwanted monthly recurring bill.
I personally use Credit Sesame, as you can see from the screenshots I’ve posted here. Full disclosure: they.
В are a sponsor for this website.)Myths About Credit Scores. Myth: Carrying a balance will improve your score. Fact: At best, it’ll have a neutral response (no impact).
At worst, it’ll damage your score due to keeping you at a higher utilization ratio. Myth: Getting unnecessary debt. В (a car loan, a student loan) will improve your score. You should get one purely for the sake of boosting your credit, even if you don’t need the loan.
Fact: Applying for this loan will damage both your average account age. В and your credit inquiries, which collectively comprise 2. Yes, it’s nice to have some installment loans on the books, but that’s only 1. Basic math: If you damage 2. Anyone? Anyone? ….
That’s right, net damage! In other words, this does more harm than good. Plus, it’s a waste of your money.
Myth: If you pay your. В bill in full every month, you don’t need to worry about “amounts owed.”Fact: Wrong- o. Your utilization ratio is based on the statement. В balance. В reported to the credit bureaus monthly — regardless of whether or not you carry that balance over to the next month. In other words, even if you pay in full, you could still have a damaging utilization ratio (“amounts owed.”)Myth: Closing your credit card improves your score. Fact: Closing cards damages both your average account age and your utilization ratio. Keep old accounts open.
Put a tiny payment on them — a stick of gum, once every six months — just to keep them active. Myth: You’re penalized for checking your credit score. Fact: You’re only penalized for “hard inquiries” — applications for credit and inquires from outside parties.
Checking your own credit score. В constitutes a “soft inquiry,” which doesn’t hurt you. Myth: Your income affects your credit score.
Fact: Your income is irrelevant, other than its indirect role in qualifying you for a loan. Your utilization ratio — amounts owed relative to credit limit — affects your score. Myth: Once you close a credit card or account, it disappears from your credit report. Fact: All credit cards and accounts, open or closed, stay on your report for a predetermined number of years (typically 7 to 1. I’m Anti- Credit Score.”There’s a vocal minority of anti- debt crusaders who don’t believe in credit scores.
Their premise is that if we’re committed to debt- free living, then credit shouldn’t be a concern. Let’s chat about that idea.“What if I plan on living a debt- free life?”I’ve never held a car. В loan, credit card balance or any other debt — so for many years, I thought credit scores didn’t affect me. I understand where you’re coming from. But there are two instances when I rely on my credit score: Buying a home (or in my case, buying several houses, all of which are cash- flow- positive investments) and earning. В frequent- flyer miles that cover my international flights.
Even if you prefer to live a debt- free (and a credit- card- free) existence, most people use credit at least once in their life: when buying (or refinancing) a home. And as the chart at the beginning of this article shows, that’s where the difference between “Good” vs. Excellent” can result in tens of thousands of dollars in avoidable interest.“Not me.