How to Raise a Credit Score 100 Points

Video Transcript

"I'm Roger Groh. We're here today to talk about credit history and how can you improve your credit history by 100 points let's say. We'll the easiest thing to do is first to get a copy of your credit history. If you go to Google and you type in free credit history, many websites will come up where you can then request that they e-mail to you your own credit history. Look at it and make sure that all of the data is accurate. Quite often you may have made the payment on time. Let's say that a payment was due on September 30. Well you may have made that payment on September 30th but the bank may been closed, maybe the person who actually took that loan in wasn't there and on the bank's books, they didn't give you credit for that loan until October 5th. Well if it was due on the 30th and on the bank's books the 5th, that means from the bank's point of view, you're late. Even though you made the payment on the 30th and if you point that out to the credit score companies, they will then reverse it on your credit history and as your credit history improves, then your scores will go up. So the first thing is look at your own credit history and make sure that the data is correct. Second would be to take a very small loan out, 100 dollars, 200 dollars and with a payback period of a year or perhaps two and make those payments on time. It doesn't have to be a lot of money, what we're looking for here is consistency. If you do that, your credit score will go up, you combine them to 100 points, you're going to pay a lot less interest and you'll be a happy camper. I'm Roger Groh and that's how you raise your credit score by 100 points."