A while back we were playing with a credit score simulator on CreditKarma.com and found some interesting things.
First, we did a simulation of “if I were to pay EVERY account on my credit report late by 1 month” and the results are below:
Ouch…160 points lost in 1 single month. Honestly, not as bad as we were expecting. Don’t get me wrong, 160 points is a big drop, but we honestly expected to see worse results for being late on EVERY account on our credit report.
Now, we ran the simulator for a comparison to see what would happen if, instead of going late, we maxed out all our credit cards to 100% utilization….drum roll……
DOWN 271 POINTS!!!!!!!!! Obviously maxing out credit cards is far worse than paying late in terms of the negative results to your credit score. However, you must keep in mind that the late payments are going to negatively affect your credit score for several years, whereas the maxed-out cards, once paid down, will be like they never existed to the credit scoring model.
The reason for this experiment was really to see what maxing out cards can do to a score.
We decided to see what effect the utilization ratio has on the credit score at 10% intervals. We did 90%, 80, 70… all the way to 5% and the results are VERY interesting! Take a look:
Thousands of people enjoy the benefits of a lower credit utilization ratio with the help of a tradeline account from BoostMyScore. The results are almost immediate, and our services are guaranteed. If you are tired of paying higher interest rates and are ready to see what life is like with good credit, call one of the highly trained specialists at BoostMyScore today at 1-800-531-1472.
No. We believe FICO® 08 was really just a propaganda scare tactic used by the Fair Isaac Corp to make all of us confused and uncertain. Based on our experience, the piggybacking boosting strategy still works just like it always has; nothing has changed. If by some stretch of the imagination FICO decided to assist banks in violating the Equal Credit Opportunity Act by making illegal adjustments to their credit scoring model, it would take years, if ever, for the new version to effectively permeate the financial industry. For example, simply because Microsoft released Windows 11 doesn’t mean that everyone in the country is going to the store tomorrow to buy the software, install it on their computer system, get it to work effectively, and then start using it. This is a very similar process that would have to be taken by every bank, credit union, credit card company, mortgage broker, car dealership, etc. in the entire country. Now knowing how it all works, you can imagine how much time you have to enjoy the benefits of our “credit renting” services…just in case.
In addition, as you can see in Regulation B of the Equal Credit Opportunity Act, and in our 2008 Press Release, it is unlawful for any lending institution to ignore credit history present in a credit report, regardless of authorized user status, or otherwise. If a bank were to reject your loan application or artificially reduce your credit score as a result of the presence of an authorized user tradeline, they would likely be in violation of ECOA and liable to pay out damages through a civil claim or government-imposed penalty.
That’s the legal reason why adding an AU tradeline to your credit report can help and why the Fair Isaac Corporation (FICO®) can’t stop us. The logical reason is that over 40 million people in the United States are listed as Authorized Users on someone else’s credit card. What, are the banks going to ignore all those children and recently divorced single moms who never bothered with their credit but now have to because their marital situation changed? I’d like to see Chase Bank or Wells Fargo defend THAT!
Your credit score contains vital information that will affect your financial well-being for the rest of your life. Educating yourself about your FICO® score and your credit report and working with BoostMyScore is an amazing way to empower yourself and improve your financial standing.
Call BoostMyScore today at 1-800-531-1472 and take the first steps on the road to improving your credit score.
Based on our experience, once your status as an Authorized User with the credit card company has been removed, one of three things can happen:
If you need the credit boost for longer than our minimum 60-day time period, be sure to ask us for a lease extension.
Once you close on a loan, the bank is contractually bound to hold those loan terms and conditions as agreed in your contract. They cannot change the terms solely because your status as an Authorized User has been removed after closing. You will likely continue to qualify for the lower rates, as long as your loan closes before, and if, the tradelines fall off your credit report.