After destroying my FICO during the housing bust, I became obsessed with getting the highest credit score possible. I was getting denied loans and only being offered unaffordable rates and I knew a higher credit score was the only solution.
Learning how to increase my credit score, both with legitimate fixes and any dirty trick I could find, became my singular focus.
Your credit score is based on items in your credit report, a collection of everything lenders say about you including how much you owe and if you make your payments on time.
You’re probably most familiar with the FICO score. It’s the one most widely used and ranges from 300 up to 850 representing a perfect credit score.
FICO estimates that it can take as much as seven years to recover your credit score after a bankruptcy and three years just to recover your score after being 90-days late on your mortgage.
A credit score below 660 FICO is considered sub-prime by most lenders. Anything below that and you’ll be considered a high credit risk. You’ll be turned down for most loans and pay super-high rates on others.
One of the best ways to use your credit score is for debt consolidation. With a higher score, you’ll be able to get rates in the single-digits for personal loans and can save thousands in interest on higher-rate cards.