Hey everybody this is Shaunta Gray, and I am answering the question of the day! So, here’s the question the question, coming from a buyer, who I always get these questions from by the way, which is, “How can I improve my credit fast’? And as you may or may not know wrote a book on credit repair teaching people how to repair their own credit and not utilize credit repair companies so, this information is definitely coming from the book and from experience in the industry.
Alright so again, the question is “how can I improve my credit fast” and they want to improve their credit fast so that they can purchase their first home or building or condo or whatever it is. This helps even if their second time home buyers and they just need to make some improvements and they want to do them quickly. I’m going to throw out one tip one of the tips definitely would be to connect with our credit repair course but if you’re not able to do that right away here’s a tip that will be very helpful for potential buyers. One of the things that is a secret in the industry and it may not be a secret anymore, which I hope this tip is out to a lot of real estate agents, and that is going on someone’s credit card, a family member or friend as an authorized user or joint obligation holder.
What this does for your credit report is that you get to borrow that person’s 24-month credit history on that one particular account. The impact of paying your bills on time for the past 24 months that impact on a person’s credit report today is giganticly enormous actually and it has dramatic effects to a persons credit report and credit score. I’ve seen people do this that I’ve coached and their credit scores went up a hundred plus points within 30 days some 60 points some forty points. It really all depends on how many negative things you have on your credit report. Basically, the good must outweigh the bad, which is one of the ways credit reporting agencies algorithms view your credit report. Here’s a list of what those credit algorithms use:
- If you have more good activities on your credit report such as low balances
- Good payment history – usage is low which equate to low balances
- Paying your bills on time equates to payment history
- A good mix of credit which could be auto loans, credit cards, student loans or something else equivalent
Please note, a person doesn’t actually have to have student loans and auto loans to be perceived as a good credit borrower but if you have a good mix and you have history on your credit report nine times, out of ten your credit scores will be high. Just remember the good credit should outweigh the bad credit. If you have more good credit than bad on your credit report, that is howyour scores are improved.
More good credit than bad is also how you’re perceived from creditors. If you have twenty or thirty collections and one good account you’re guaranteed to not have a high credit score. So the possibility of improving your scores by adding the one authorized user account or joint obligation holder account, can have a little bit of impact if you have a lot of collections. You’re more than likely needing to clear those collections up first before you can see major improvement in your credit scores.
In my credit repair course, we teach you how to get those credit collections cleared and teach you which ones you don’t need to touch when attempting to purchase a home. The wisdom to know which collections to target and those you shouldn’t challenge is critical in getting maximum results.
Hopefully that information was helpful for you. Be looking for our credit repair course, as we’re
launching it in the next few days. If you need that 27-point checklist I use with my buyers
so that my transactions go smooth and my deals are not surprised by things that come up in the closing process or at the table, send me an email or click the links below!