One question about credit you may ask often--- “How to raise my credit score quickly?”
If you say YES. Well the next question you should think about is “"How much do you want to raise it?"
Raising credit score from 500 to 570 is far more difficult from 650 to 720. Why? It differs because of the starting point, and it requires a different approach. Also, one of the basic concepts at best of raising your credit score is the removal of negative items from a report. Therefore, in this article, we’ll show you some techniques that will improve you credit score only know by very few people.
Below are some techniques about removing negative items, which you can use if you have no unfavorable information in your report. OK, let’s begin the overlooked methods.
DEBT to CREDIT RATIO: One of the falsest belief is "I have excellent credit, I pay all my bills off in full every month!". You have to get your "credit mindset" right. And the debt to credit ratio is the key point. What is debt to credit ratio? Debt to credit ratio is your ratio of debt to total available credit you have been extended.
For example: Total unsecured revolving credit account: $20,000 Currently in debt: $5,000 Your debt to credit ratio: 25%
The primary way lenders make money is by charging interest. So, the key that lenders make money by credit scoring model is driven by your ability to maintain balances and pay over time. This is the real credit worthiness and that is why lenders make money, because the main profit comes from interest and not annual fee.
We’ve discovered one thing, having a proper debt to credit ratio will increase your credit score faster than paying off your bills in full each month.
So, what to do if your debt to credit ratio is too high?
For example: Total unsecured revolving credit account: $20,000 Currently in debt: $15,000 Your debt to credit ratio: 75%
So, how to decrease your debt to credit ratio without selling anything you own?
There is one technique you can use:
SUB-PRIME MERCHANDISE CARDS: One of the most cost effective technique to decrease debt to credit ratio is to use Sub-Prime Merchandise Cards.
 Sub-Prime Merchandise Card is a card which allows you to buy merchandise from a specific vendor which was attached to a line of credit. In most cases, customer buy merchandises through a catalog or online mall.
Here’s how Sub-Prime Merchandise Cards works: the company give someone who applied the card for for $3,000 to $15,000 with no credit check and no cosigner. However, the card is only good for merchandise through their website or catalogs and the consumer is required to put down a deposit on whatever they purchase. After the deposit is paid, the remaining balance is financed on the card.
For example: Someone buys $1,500 worth HDTV, and their deposit is $500, so they can finance $1,000 on their merchandise card and make a payments.
That sounds great, right?
By using Sub-Prime Merchandise Cards, your credit data will be reported to credit bureau. This means if your card limit is $10,000 and you finance $1,000 on your credit report. It will look like other credit card and do three important things for you
1.) Increase your "High Credit Limit" by $5,000 overnight, just like any other unsecured revolving account.
2.) By carrying a small outstanding balance it will positively impact your credit report by building and showing potential lenders your credit worthiness.
3.) With a good payment history you are virtually guaranteed to receive "legitimate" pre-approved credit offers in the future due to other lenders renting your name from the credit bureaus.
This technique is good and hard to beat for both cost and effectiveness. By using Sub-Prime Merchandise Cards you have to know exactly which cards report to the credit bureau and offer the best rates.
What we concern about is our credit score. Credit miracle is what we want, but it doesn’t happen overnight. So we can create our own credit miracles by applying simple insider strategies consistently over time.