Credit Score Whoring TM

Experian Credit Average for VirginiaA friend of mine who graduated with me was refused an interview at a DC company because his GPA was less than 3.5 and he used the term ‘GPA whore’ for the company. Thus leads to the birth of my new term – ‘Credit Score Whoring’ TM (CSW) – trying to artificially raise your FICO Credit Score for the purpose off showing off.

I have tried some techniques of CSW successfully (YMMV – take this advice at your own risk) before applying for my home loan in 2005 and here I will describe my method. Be warned that the process takes several months to several years, a strong will, some degree of discipline not to go overboard and atleast a decent credit score to start with (>= average). The first thing to understand that to have a good credit score, you must have debt or atleast have had some debt in the past and you must pay on all your debt in time all the time. So let’s start.

Step 1: First calculate your current credit card debt = D. Next calculate your credit limit of all your credit cards combined = L. Note: If you already have credit card balances that you cannot pay off in full, pay those off first before trying this out.

Step 2: Apply for a 0 intro APR (on purchases and balance transfers) and no fees card from one of the offers you get in the mail (such as the Discover® Gas Card). Transfer all your balances to this new card. Only use this card for a while for everything – you have to get your D/L > 0.2. If you cannot get one card that offers this open two card accounts – one for purchases and one for balance transfers.

Step 3: Now that you have only one or two cards to pay, pay slightly more than minimum to the cards each month. Put the rest of the payment in a high yeild savings account instead of paying your credit card (do not touch this money because you will have to pay your bills later). Be warned, your credit score will temporarily decrease as you rack up debt on these new credit cards. And do not use any other credit cards.

Step 4: At the end of your 0 APR period. pay off the entire balance of the credit card(s). In about one month, notice the huge increase in your credit score :).

Rinse and Repeat – Go to Step 1. In this process if you end up with too many cards, just merge all the cards form the same bank into one account – preferably your oldest account with that bank because length of your having a credit account is very important.

Why This Process Works
Your credit score depends on the following things:
– Low D/L (Drastic reduction of D/L = drastic increase in score)
– High L (never close credit card accounts, always merge)
– Paying more than minimum each month (even if it is just 1$ more than minimum)
– Not having balances on too many credit accounts (no more than two)
– Using credit cards (stop using your debit card, cash, checks – use credit cards, earn free cash back and improve your score)

This is from my own experience over the last 6 years and I repeat – YMMV (Your Mileage May Vary) and use this information at your own risk.

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