Tag Archive for: raise credit score

How to Raise Your Credit Score Fast: Usage Loan

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What’s a usage loan? And how does it raise your credit score?

Your credit card usage is reported to the three credit bureaus.

This impacts your FICO score.

Your FICO score impacts the funding and terms you can get for your real estate investments.

So what is a usage loan? Where does it come into all this?

Why Usage Matters

If you pay off your card balances before the next reporting cycle (before your next statement), then your FICO score will rise.

Disclaimer: your score will go up as long as everything else stays the same. As long as you have not taken out other credit, missed a payment, or created over negative credit issues, lowering your usage will have a 

But if you had the cash laying around to pay off these balances, you probably would have done it awhile ago. How do you bring your usage down without cash? That’s where a usage loan comes in.

What Is a Usage Loan?

It’s a loan that makes life easier and more profitable for you.

A loan to correct the usage that negatively impacts your credit score and limits your access to GOOD leverage.

More specifically, it’s a private loan that does not report to your credit bureau that you can use to pay down your credit cards, thus increasing your credit score.

It tips the lending guidelines back in your favor AND gets you better, cheaper, and easier loans.

How to Get a Usage Loan

A usage loan isn’t meant to deceive your lender. You still have to let lenders know you have this debt.

If your debt was on a business card where they belong, it wouldn’t count against your personal credit. What a usage loan does is give your credit score a leg-up to get you the best funding you deserve. 

Interested in discussing a usage loan? Let us know here.

For more info on getting credit ready for leverage, you can watch these videos.

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Credit Score Problem: What is the Big Credit Dilemma?

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Credit Score Problem: What is the Big Credit Dilemma?

Let’s talk about a major credit score problem and how it impacts cash flow.

Every day, we hear about common roadblocks that prevent our real estate investors from making the kind of positive cash flow they need.

Today, we’re going to explore the number one roadblock that we hear about from clients:

A low credit score caused mainly by high credit card balances. Because the lower your credit score, the higher your rate and the fewer loan options you have available.

 

But, here’s the kicker: You need a loan to pay off your credit cards to raise your score.

Not only that, but a higher interest rate might kick you over the allowed debt-to-income ratio and prevent you from getting approved for a loan.

How do you win at this game? The deck is stacked against you.

It’s okay. Really!

We’ve seen this problem a hundred times in our business because every real estate investor uses their credit to finish renovating a value-add property or run a business. It’s a cycle that’s downright hard to get out of.

Our solution? Take it private.

Like the many other clients we’ve helped, we can help you fix your credit score problem by setting up a private loan. That way you can:

  • Pay off your credit cards
  • Raise your score
  • And get the loan and rate you need.

Once you do all of that, you can pay off your private loan and resume normal business with the best loan you can get. Signed, sealed, and delivered.

We also can help you build your business credit and take your credit cards completely off your score.

Either way, this little trick can help you and thousands of others get better rates, pay less to the banks, and make life more profitable.

Happy investing!

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