Tag Archive for: usage loan

How to Fix Credit Usage Quickly

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High usage lowers your score. Here are 3 ways to fix credit usage quickly.

From our 20+ years of working with real estate investors, the number one reason we see them pay too much for funding is their credit scores are artificially lowered by their normal business needs.

How does this happen? And how do you fix it?

How Usage Impacts Your Credit Score

Many investors put their business expenses on a personal credit card. As long as it gets paid off eventually, no problem, right?

Unfortunately, when the ratio between your balance and your credit limit is high (aka, credit usage), your credit score takes a hit.

But you need credit cards to keep projects (and your business) growing.  The problem is: you either have to wait until you pay off the cards after selling the current project to start your next project, or… Pay over-inflated prices for money.

Let’s look at 3 ways to fix that.

3 Ways to Fix Credit Usage Quickly

  1. Move the cards off your personal name and onto business cards that don’t report on your credit. Some business cards do reflect on your personal credit, so make sure to ask about that before committing to a card. Here is one option you could look into.
  2. Call your current cards and ask them to raise your available limits. The problem isn’t that your balance is high. The real issue is that you’re using too high a percentage of your credit.
  3. Obtain a private loan that does not report on credit to pay off the cards. This raises your score so you can get better funding before paying off the card.

Getting Help to Fix Credit Usage

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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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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