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- From No Credit Score to 800 Almost Overnight
From No Credit Score to 800 Almost Overnight
Kerry Lutz
May 06, 2024
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How My Daughter Achieved an 800 Credit Score in Just a Few Weeks
By Raoul Johnson
Achieving a high credit score is a milestone many strive for, but few accomplish, quickly or otherwise. Yet, my daughter managed to leap from no credit history to a stunning credit score of over 800 in just weeks. Here’s how we did it—a blend of strategy, timing, and a little familial trust.
Starting From Scratch
In her senior year of college, my daughter faced a common plight among young adults: she had no credit score. Without a history of credit, she was starting from ground zero. Understanding the importance of credit in the real world, we struck a deal. I promised her I could help her reach a credit score of 720 within 30 days. In return, all she had to do was focus on her academics. She was skeptical but accepted the challenge.
The Bet
True to her word, my daughter dedicated herself to her studies, acing her exams and completing her final semester with an impressive GPA. Meanwhile, I set my plan into motion. The process was simpler than one might think, involving no new lines of credit or loans.
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The secret weapon was leveraging my own established credit. I have maintained two credit cards with high limits, low balances and long, positive payment histories. I called the banks and added her as an authorized user to both accounts. This action allowed her to piggyback or bootstrap on to my credit history, instantly giving her a substantial credit foundation.
Immediate Results
We didn’t have to wait long. Just a few weeks after adding her as an authorized user, my daughter called me, bubbling over with excitement. Her credit score had soared past 800. This rapid transformation was beyond our expectations and transformed her skepticism into astonishment.
Why Did It Work So Well?
Credit Utilization: Adding her to accounts with high limits and low balances positively impacted her credit utilization ratio, a key factor in credit scoring.
Payment History: She immediately benefited from the years of on-time payments associated with the accounts.
Credit Age: Being added to well-aged accounts helped lengthen her average credit history, another important component of her credit score.
Lessons and Cautions
This story isn’t just a testament to a father-daughter bet; it highlights a powerful, strategic approach to building credit. However, it comes with cautions:
Risks: The strategy depends heavily on the primary account holder's credit behavior. Any negative activity could adversely affect both parties.
Not a Universal Solution: Not everyone has the opportunity to become an authorized user on such favorable terms.
Conclusion
What we achieved in a few weeks was extraordinary, yet it underscores the importance of understanding credit mechanics and how credit works. For young adults like my daughter, starting with a strong credit score is an incredible advantage. It’s was crucial for her to continue building independent credit and managing it responsibly.
For parents and mentors out there, this approach can offer a significant head-start to your child's financial health, provided it is used wisely and responsibly. Your child can go from zero to 800 and you can go to hero.
At Fortress University, you can achieve similar results. While you may not go from zero to 800 in a few weeks, but we often help our clients increase their very low starting points to creditworthiness almost overnight. Contact us today so we can help you rebuild your credit and turn your financial situation around way faster than you ever thought possible.
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Consumers Hit the Brakes on Debt Just as it Reaches Record Levels
The sharp decline in December may be a harbinger of weaker consumer spending or it could be just a reaction to higher interest rates.
By Tim Smart
Consumers Hit the Brakes on Debt
“Credit card and auto loan transitions into delinquency are still rising above pre-pandemic levels,” said Wilbert van der Klaauw, economic research advisor at the New York Fed.
The American love affair with debt took a timeout in December.
After piling on debt for much of the year – in 2023, the type of credit commonly provided by charge cards and other loans increased 8.4 percent – consumers slammed on the brakes in the last month of the year. Credit expanded by just 0.4% in the month, according to the Federal Reserve’s monthly credit report released Wednesday.
Published: May. 3, 2024 at 6:01 AM EDT|Updated: May. 3, 2024 at 7:49 AM EDT
BATON ROUGE, La. (WAFB) - Imagine being turned down for a loan or paying higher interest rates due to errors on your credit report. It happens more often than you might think. And the negative consequences don’t stop there. Checking the accuracy of your credit report is easy to do with these steps from Consumer Reports.
Credit report errors are the top consumer issue filed with the Consumer Financial Protection Bureau! – And the problem is getting worse, with complaints more than doubling in just two years.
Common errors include inaccurate personal information, duplicate accounts, closed accounts reported as open, and paid-off debt appearing as unpaid.
A credit report is like an X-ray of a person’s finances! Incorrect information on that report can prevent a person from getting credit or a loan, renting an apartment, getting a good insurance rate, or even getting a job.
You can get your credit report for free every week from each of the major bureaus at AnnualCreditReport.com.
If you do end up finding an error, fix it right away. You’ll want to file a dispute with each of the three credit bureaus -, Equifax, Experian, and TransUnion. Include all the evidence you have, like account statements and payment records. Create a paper trail by writing a detailed letter of explanation, send all of these via certified mail, and keep copies for yourself.
Remember to check your credit report often. You can set your phone to remind you. Just like you go for a checkup with your doctor, you have to check your credit.
Consumer Reports says adding a note to your credit report file can provide context for future lenders, employers, or landlords, potentially improving their perception of your financial situation.
Here’s How Much Debt the Average American Has
Americans' personal debt levels grew slightly last year, mostly thanks to credit cards and auto loans, according to data showing the average person owes nearly $23,000, not including mortgages.
The average personal debt per individual grew from $21,800 in 2023 to $22,713 in 2024, excluding mortgages, according to recent research from financial services company Northwestern Mutual.ET STARTED
Average debt levels in America, by generation
Last year, Northwestern Mutual found that the average personal debt among U.S. adults excluding mortgages reached a four-year low — and significantly lower than an average of nearly $30,000 in 2019.