3 Simple Ways to Boost Your Credit Score Fast
Leveraging your real estate investments just got easier with these 3 quick ways to raise your credit score.
Maybe you’ve already noticed it.
Larger lenders are getting into the fix-and-flip hard money space. And many of these companies require credit scores as their underwriting criteria.
In this landscape, your score decides the speed and effectiveness of your journey to fix-and-flip financial freedom.
Your score will determine your rates, leverage, and overall income from your real investments.
Good or bad, your score impacts every step of your financial process.
So how can you raise your score in a short amount of time?
How Can I Raise My Credit Score?
First of all, it’s helpful to know exactly what a credit score is, which you can read here and here. And how it impacts your real estate investments, which you can read here.
1. Add More Credit to Your Line
Ask your credit card company to raise your credit limit. For example, if you increase your limit from $1,000 to $3,000, owing $1,000 jumps from maxing out your line to only using 33% of it.
Other options that have the same effect are:
Open up new lines of credit, but don’t use them often
When you get a new card, don’t close your old one, just stop using it
Having more available credit will automatically make your accounts owed look better, and raise your score.
2. Get Authorized on Someone’s Good Credit Account
A good credit account:
Is always paid on time
Has existed for awhile
Has a low balance
Ask a parent, friend, or other trusted person if they’ll add you as an authorized user to their credit card account.
This won’t help you immediately open up credit lines with lenders, but it will raise your score.
3. Go Private
This means borrowing money from someone or somewhere to temporarily pay off your credit cards so you can apply for more credit.
Your credit score changes almost daily.
Let’s say you have three credit cards. They’ll each have different reporting schedules. If you borrow private money, you can time payments so your score is increased long enough to open new credit lines.
You can keep the debt paid for 60 days or so while you apply for loans.
Putting in the time and effort for a high credit score more than pays for itself in the leverage it gives you in real estate investments.
Three quick ways bump up your score are to:
Add more credit to your line.
Get authorized on someone else’s good credit account.
Go private – get money from somewhere else to pay off your debts long enough to apply for more credit.
For more tips on building good credit and maximizing real estate investment leverage, check out these helpful videos on our Youtube Channel.
Or you can download our Credit Score Checklist by following this link.
Need Help with Your Credit? Contact us today for our list of preferred credit boosting companies.
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