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Increase your Credit Score | Experian Boost

Boost your credit score with these simple yet effective steps. Watch the video HERE

Let’s get right into it. I’m not going to go into too much detail on credit here since I already made a video covering that so if you want to understand your credit and why it’s important to you then I’ll provide a link in the description if you want to know more about it.

Experian Boost

So if you need a quick way to increase your credit score. Experian Boost may be the program for you. Experian Boost is a new free program that Experian rolled out to help boost your credit score and how it does this is by electronically looking into your bank accounts, which you would need to link a bank to the program, and it scans your accounts for any utility bills or cell phone bills and it uses that data to determine your creditworthiness and adds that to your already existing Experian credit score. The cool thing about this program is that anything that is negative in your bank accounts will not count against you… it only takes into consideration the positive entries but the thing that sucks about this program is that it only increases your Experian score. And since this program is geared towards people who just need some work on their credit, most people who have a score over 700 have reported little to no change but since this program does not hurt your credit in any way… it’s worth a try. With that said let’s look at ways anyone can do to increase their credit score.

Alright so here’s the Credit breakdown and you can see the factors that make up your credit. And we’ll go through each one to see what you can do to increase your credit score.

Credit utilization chart

So looking at your payment history, you can see that it accounts for 35% of your credit and is the most important credit factor to your score and if you’ve been making your payments on time for the last 7 years there’s not much you can really do here since you should be in the green and the reason why I say 7 years is because any late payments will stay on your credit for 7 years but will be removed from your report after that.

But what if you did have late payments on your report? And what if it’s reported in error? Well, you want to dispute that as soon as you can by contacting the company that is reporting the late payment. You can usually get the company’s information on your report and if you don’t see it then you can just google the company to get the information but you want to get written confirmation from that company and you want to ask them to contact the bureaus and correct it.. And for good measure, you are going to want to contact the bureau yourself and dispute the claim also, you can never be too careful.

But If you know the late payment was your fault and it can happen to the best of us, all is not lost. I know you don’t want to wait 7 years for it to come off your report so there is something called a Goodwill Letter or Goodwill removal. And all you’re really doing is asking them for forgiveness and to remove your late payment from your report. Keep in mind that in no way do they HAVE to remove it for you but you want to politely appeal to them and ask them to remove or delete it off your credit.

Also if you are continuously late on this account do not expect them to remove it because the chances are they aren’t. You want to be sure that you have been paying on time and it’s been awhile since your payment was late because it shows them that you are trying to make amends for the past and it was just that instance. I would typically wait at least 6 months of on time payments before making that type of appeal. 

And if the appeal works… you should see a significant jump in your credit score since this factor does make up for 35% of your score. And depending on when the company or bureaus decides to remove the negative strike on your account, it may take some time before you see it reflected on your credit score but I’ve seen it make a difference as soon as a few weeks to a few months. 

So the obvious solution to fixing credit utilization is paying down your debts. But what if you don’t have the money right now, well there’s ways around that and one of which is Bank churning and all it is… is opening up bank accounts for bonus money that, for the most part, doesn’t hurt your credit and you can use that money to help pay off your debt. I’ll provide a link to that video in the description below. But another way to lower your utilization is to request for a credit limit increase. Now this can be tricky but you want to make sure that when requesting a credit limit increase… the company is doing a soft pull on your credit and not a hard pull. Some of these companies also have an online request to increase your credit limit but I would advise against that simply because you can get a higher limit increase if you speak with someone directly either over the phone or in person but obviously this only works if your credit is good enough to warrant the credit increase like don’t expect to get a significant increase if your credit score is under 650. And also the amount you get will also be dependent on your annual or monthly income and depending on the company, they may or may not ask for documentation like a pay stub but there are very few cases when they would require documentation, most of the time your word is good enough.

The next thing you could do to improve your score is to open a new line of credit, like a credit card. Now this may decrease your score because it’s a hard pull against credit and it may decrease your Credit age but those factors combined only make up for 25% of your credit whereas Utilization makes up for 30% of your credit so at the worst case scenario you’ll gain a 5% increase in your credit score but realistically it’s more like 10% gain to your credit score as long as the other 2 factors are still in good standing. So if your score is 600 you could gain 60 points just by opening a new credit line.

So both of these options are accomplishing the same thing when it comes to utilization. You’re essentially increasing your overall credit limit to make it look like you have less debt without paying your debt off. Let me give you an example. So looking at the first scenario let’s say you have a credit card with a $10,000 limit and you used $3,000 dollars which means you utilized 30% of your overall credit. Now if you applied for another credit card with another 10,000 credit limit and you still owe that same $3,000 dollars, your utilization is now 15% which puts you in the good category and depending on the amount of the credit limit you received, this could potentially put you in the excellent category which could increase your score 100 points or more if you were at 75% utilization.

Experian Boost

As far as the last 3 factors that make up your credit score there’s only one other factor that you can manipulate to help your credit score and that is your Total Account. And to be honest with you if you already have over 11 credit lines open and if it consists of a mix of different types then there’s not much else you can do. Just a quick mention that this is not financial advice and if you need help please consult an expert on the subject matter.