How To Achieve An 800 Credit Score
How To Achieve An 800 Credit Score.
Having an 800 credit score is like owning a sniper rifle, it’s incredibly useful at very urgent times- when you need to get a home, get a car, or get large lines of credit to help your business grow. Not having a sniper rifle when the war is on will put you in a precarious position.
First though I want to detail how important credit is to not just your life, but entire economies. The world’s most successful, capitalistic nations are successful because of credit. This is because credit is a trust mechanism and the more trust there is an economy, the more transactions will take place. A higher turnover of transactions produces a stronger economy.
Poorer countries who don’t have credit aren’t able to move goods as frequently. Imagine being poor and also needing to buy a car in a country with no credit. You would not only need to save up the entire cost of the car, but because you are poor it will literally take your entire life to save up that amount. Because of this, the local car dealer is not moving a lot of units. The entire car industry in that local area is stalled.
Now imagine extrapolating this concept across an entire economy. Without credit, there is a slow or even stoppage of goods being moved, and a low turnover of transactions produces a weak economy and weak wages.
So let’s just start out by saying that credit is an incredibly healthy thing for not just you but the entire economy of your country. You are doing a service to your country by utilizing credit.
The problem though is that credit and debt freaks out 95% of people. That and they don’t understand how it works. The other 5% who are being tactful in their use of credit and establishing new lines are the people that are making massive changes in their business and lives.
Having an 800 credit score however is a means to an end. You shouldn’t give a fuck about the 800 score itself, because a high score only serves as a way to open new credit lines and have an overall larger amount of credit available to you- so you can put it to good use, buy a new car, save lots of animals- whatever. **Note, If you are popping bottles over an 800 credit score, I will slap you.
So let’s talk about the biggest issues that are keeping your credit score down, and how to fix them. As you will notice, everything is about trust (the same applies for business and relationships in general).
History of overall credit.
If you don’t have any history or very little, this is bad and we need to get started applying for more credit asap. Just think about it. If you have no history of trust, why would I trust you?
The most common occurrence comes from missing payments. This is the biggest break of trust between you and your credit card company. I was a moron years ago and didn’t have all my cards on auto-pay, and those late payments were still affecting my credit 4 years later! We will want to work on removing these “derogs” asap.
Inquires In The Last Year:
Basically, credit companies don’t want you to be using their offer and shopping it around- whether it is a car loan or a credit card offer. Shopping it around means there is a lower chance you will do business with the company making the original offer. So, there is no trust between you and the offer-maker. You don’t want to keep applying all the time. You want to be a sniper for applying when you need it and I will show you how.
Credit Usage Percentage:
Obviously, carrying a large balance is expensive for you, and it a risk for the new company extending you credit. They are worried about getting paid back, especially if you need to pay off other people first— it’s a trust issue for them. A high usage rate on your credit lines is not good. You will want to pay down credit but I will also show you a hack you can do to quickly lower your usage percentage without paying anything off.
How I Did It:
About a year ago I was at a 639 credit score. Sure, I had good cash flow, but creditors didn’t really care about that. Also, my business had less than two years of financials. You will need at least 3-4 years of being established to get business lines of credit. For now though, let’s stick to improving your personal credit.
The first thing I needed to do was to clean up some of the old derogs (late payments) from my credit history. Anyone can file what is called a fraud dispute with any of the three bureaus at any time (Experian, Transunion, Equifax).
Did you know you can dispute that you had late payments by saying that your credit was highjacked?
You open a fraud alert with each bureau. Basically, they are going to keep denying that your late payment(s) are fraud. The strategy here is basically beating them into submission over and over. Keep telling them that the late payments are because of fraud. You are legally able to do this, and at some point, the agencies will get tired of hearing from you and will cave in and remove the derogatory mark on your credit. Removing each derog will immediately boost your score by about 20 points. The problem with this strategy is that it is basically a full time job and you have to keep checking in with each bureau daily. Nobody has time for that. So it’s best to hire a person or service to do this for you.
I removed three late payment derogs from years past and boosted my score by over 60 points from this alone.
The next thing that I did was increased my available balance. Crazy but did you know that even on your own credit cards, you can add other people’s names? People not even related to you.
On the flip side there are many people with long-standing, large lines of credit that will allow you to be added to their credit cards for a few months. This is all part of a pay-to-play program.
With your name on much larger lines of credit ($30,000 to $50,000 credit cards), this increases the top-end of your credit. So even without paying off any cards, you could dramatically reduce your usage percentage, if only for a few months.
Remember, at this point we only need to artificially raise your credit score up for a couple months, so you can apply for your own larger lines of credit and later have permanent 800+ scores.
It will cost you roughly $800 to get your name on each of these larger “Tradelines” for a few months. My recommendation is to get two of these new tradelines added to your credit report, so you show available credit of a least $60k- $80k. You have to know the right people or agency that can do this for you, as they are the ones who have access to the “book” of people that will allow you to be added to their credit cards.
So by now, a few months after the beginning of your credit-cleanup process, should have achieved wiping all your derogs and also artificially jacking up your available credit. If you are close to an 800, this is the prime opportunity to strike, and apply for lots of new credit lines so you can get a permanent 800 and also have a ton of available credit to do all the fun things you want to do in life.
The key now is that you want to pick a “Credit Day” and do all of your applications on the same day. This includes personal re-finance loans, car loans, lines of credit and credit cards. You will want to apply for all of these things on the same day so that each organization does not see a history of all the other applications. For instance staggering applications out over a few days or weeks is literally the worst thing you could do and you will probably get denied. Stringing out applications every year of six months is better, but we are all entreprenuers here and we want SHIT DONE NOW, so the best best is to pick a credit day and do all of your applications for the entire year on a single day. This is your best chance of getting multiple approvals all at once. If you apply for 10 cards and get approved for 5— that’s great!
After you receive your new loans and credit cards, most likely your credit score will take a hit because of all the applications you just did. THIS IS FINE because remember, a credit score is a means to an end. You have a lower credit score now but you achieved your grand prize of securing lots of new lines of credit. And you will have these forever! Just be sure to use it wisely and never miss your payments.
You can rinse and repeat this cycle every year or two if you like. And the best way to get all of these things done- removing derogatories, adding artificial tradelines, and even applying for credit, is best done by working with a professional who does this full time. I paid about $4k in total to have everything done for me, through a vetted, trusted person, and it was some of the best money I have ever spent.
I am close with a very reputable person who does this full time for clients. If you are interested in an introduction, feel free to email me at the address in the footer with subject line “Yo Eric- Credit”.
Thanks for reading and best of luck with your credit endeavors :-)