How amazing would it be if you could boost your credit score by 20, 30, or even 50+ points in 1 month?! What kind of loans could you not only qualify for but even lower your interest rate and increase your cash flow? That is what our guest, Bailey Stewart, the owner of The Credit Marketplace, will teach us! In fact, I did the same strategy 12 years ago, and it boosted my score by 23 points in 1 month! Find out how!
Bailey Stewart Bio
Bailey Stewart started his first business at 11 years old, inspired by both of his parents being entrepreneurs. From a very young age, he has been interested in business and finance. Bailey first saw the power of Authorized User Tradelines when they used them to help his parents recover after filing bankruptcy with both of their companies. His parents were able to qualify for an auto loan less than 3 months after the bankruptcy was discharged.
After graduating high school with nearly 40 college credits and an internship at Paradigm Life, he began to pursue a college education. Still, he quickly saw he was learning more outside of the classroom. Eventually, he dropped out to start his own business. He was able to use tradelines to build his credit to a 780-credit score when he was only 18 years old!
Chris Miles Bio
Chris Miles, the “Cash Flow Expert,” is a leading authority on how to quickly free up and create cash flow for thousands of his clients, entrepreneurs, and others internationally! He’s an author, speaker, and radio host featured in US News, CNN Money, Bankrate, and Entrepreneur on Fire, and he has spoken to thousands getting them fast financial results.
Listen to the podcast here
How Can You Boost Your Credit Score In Just 1 Month? With Bailey Stewart
I’m so excited about this episode that we are going to give you. If you are on this show, you are here, hopefully, because you want something more than just the mediocre average life. You don’t want to live by the status quo. You don’t want to have the life that everybody else has, which is a life of bondage. A life of scarcity and lack. You are here because you want more. You want abundance and freedom. You want control of your own destiny and of your life. You want cashflow now and that’s exactly the kind of freedom we are talking about here.
As a reminder, check out our website, MoneyRipples.com for other types of information. If you have questions, as you say, “I would love to hear an episode on this topic.” Shoot me an email at Chris@MoneyRipples.com. I’m excited to have a special guest here and this is a guest I have known for about a decade. I remembered him when he was a kid. Now, he’s here tearing up the world and doing some amazing stuff.
There are going to be a few interviews we are going to be doing with this guy here but if you want to know how you can boost your credit score within 1 or 2 months. Boost it up, which gives you lower interest rates and increases and free up your cashflow, you need to read this. In the next episode, we are going to talk about how you can even cashflow using your human life value, your human capital. You are zero money out of pocket and there are ways you can cashflow some things.
I’m super excited about this episode, as well as the next episode we are doing here with Bailey. Bailey Stewart started his first business when he was eleven. Both his parents have been entrepreneurs. I know them personally. They are good friends of mine and adore them. I will tell you from my own personal experience when I first met him. I remember he was in a room of about 100 people and I remember that he would say things. This was when he was eleven.
We were doing what was called a Soul Purpose Intensive. We are talking about living your life’s mission, passions, and things like that. He would come out and say things and floor people. These people would be floored like, “I wish my eleven-year-old would sound like this kid.” I remember him from that age and the wisdom beyond the years that he had.
What’s cool is I was able to reconnect with him. The thing that he has done over the last few years as he’s gotten more to the entrepreneur space as an adult here is he’s starting to figure out how you can leverage your credit. Specifically, how you can boost your credit score or even be able to cashflow from your credit. That’s the thing that’s that we are going to be talking about in this episode is specifically how you can boost your credit score. Bailey, welcome to our show.
Thanks, Chris. Thank you for the generous introduction. I’m excited to be here.
You have tuned in to the show too and so you know, we don’t bring on a poser. We bring on the real deals and you are it.
It’s an honor. Thank you.
Give everybody a quick introduction of how you ended up on this path. You started as an entrepreneur at eleven, but what got you down this road to where you are now?
I have always wanted to start a business. I have known since I was little. It’s basically how I was raised but the idea for this business was first presented to me back in 2009. My parents had just filed for bankruptcy and they used this concept to go from bankruptcy, being discharged to getting an auto loan within 2 or 3 months. It was a pretty incredible concept that I saw in action. Now, that I’m older and in a place where I can put it to use, that’s what I have been capitalizing on.
I have dealt with people that have dealt with bankruptcy. Some people are hoping and praying that after 1 year or 2 they will be able to qualify for any loan. Usually, they have to start with some crappy secure line of credit and things like that. You are saying that three months after the bankruptcy was discharged, they went ahead and got an auto loan.
It gave him a hand up and fast-forwarded, 1 or 2 years and they were able to get right back on their feet. We have seen that time and time again, where it can help people get a head start in their financial world.
Is that the thing that fueled you to pursue this or what is it for you that you love about this thing?
I love helping people out. I’m on the phone every day helping people figure out how they can get ahead in life and provide for their families and their future. I also love what a win-win it is for the cardholders and the clients. It’s a lot of fun to facilitate that win-win transaction.80% of your credit score is based on your payment history, utilization, and credit age. Click To Tweet
The thing that excites me about this is this is a strategy I have known about myself for many years and I have never taught it. It’s cool that we have you on the show to talk about this. Tell us the basic premise. Someone who says that they are trying to boost their credit, whether they are trying to qualify for a car, a house and get a better interest rate, or whatever it might be. How are people able to do this? Give us the basic rundown of how this works.
First off, you need to understand how a credit score is calculated. Eighty percent of your credit score is based on your payment history, your utilization, and your credit age. When someone is added to a card as an authorized user, that card reports in their name and copies and pastes that information over to the credit score.
Let’s say someone had really low limits and low age and their cards were maxed out so their utilization was high. They can get on a trade line, which is going to report years of perfect payment history. It’s going to give them a higher limit, which will lower their utilization and also increase their credit age. It essentially takes all three of those components and is able to help them build all those up within just a couple of weeks.
Let me address those fundamental elements because you are right. That’s critical. We all know paying payments on time is critical. That’s easy, but when you talk about utilization rate, we are talking about what percentage we are using of the total limits that you have.
I was talking with a guy the other day who was looking to apply for a mortgage. In the situation he was in, he had $30,000 in limits. That’s the potential amount that he could use but he had $25,000 in credit card debt. His utilization, which is 30% of your credit score was through the roof. His dilemma was whether he could put $500 a month into paying that down. He was coming to me wondering what he ought to do.
I was like, “You can put the $500 towards your debt and pay it down 2% a month for the next year or you can put that $500 towards a trade line that has a $30,000 limit and cut your utilization in half within a couple of weeks. You can then go out, get the mortgage, apply for new credit, and build that platform to continue to build credit over time.”
What you are saying is he could take that $500 a month, get a new trade line, or a new $30,000. He had $30,000 before, but you are saying doubling it to $60,000. Is that what you did?
Yes. It cut his utilization in half before he was almost maxed out and now he doubled the amount that he could spend. If you were to put the $500 down towards his actual credit card debt, it would only pay it down 2%.
At least I have noticed and there are always changes. FICO is weird because they are always switching the rules and even FICO doesn’t understand how they work totally. I have learned that if you get your balance to limit ratio, that utilization rate if you get that down below 45%. In his case, $30,000, he’d have to get it down to $14,000 or maybe a little bit less which with the law, that’s $9,000 to pay down. What you are saying is to use $500 to then leverage somebody else’s credit to get another $30,000 line and now it got them below that 45%, isn’t it?
Yeah. The cool thing about it is you can leverage depending on where your credit needs help. If you are young or you have missed payments in the past, you can find cards that complement the specific areas of your credit that need to be built up.
That’s utilization. That’s key. It’s knowing how much limit you have. For those of you who are reading this. Tell me across the board, whether you are trying to get credit and boost your credit score or you are talking about possibly leveraging something here, it may not be a bad idea to ask to see if you can increase your limits. I have had clients do this before, where I have said, “Let’s have him increase your limits and see if we can do that first before you pay anything down because if he can great.”
That’s awesome because now we were able to, in a sense, boost your credit score without any money out of pocket. That’s a great tip. There’s also the age of a credit history, which that’s a big one because there is some bad information about this bad information because if you get the Dave Ramseys of the world. They are telling you to cut up your credit cards and cancel them.
A lot of people out there can get by without using credit for a long time. They are told it’s a bad thing and a lot of people can get by without it until they need to get a mortgage or an auto loan or they need to use it in their everyday life and at that point, it’s a little too late.
You never get it when you need it, you can only get it when you want it. That age is a big deal. For example, when you start a new credit card, what happens to your credit score? If you go to apply for a brand new credit card and it’s month one.
Let’s say you had another credit card on there that was two years old. Your average age would drop to one year because you have one that’s brand new and one that’s two years old. A lot of times, it’ll be a little negative for your credit score first.
At least for a time until you start keeping it going, have payments and things like that. Credit history isn’t the big one for me. I will talk about this and we will talk about how this applies to what you do. Back in 2006, I remember I was working to get my first big dream home. For everybody following the show, this is the home I eventually lost. I was looking to boost my credit score. I want to say my score at that time was in the mid-600s because I had some lates and a big reason is I was 28 years old and even though I had some lates, I didn’t have a lot of credit history.
I didn’t have a very long age on my credit lines. I remember hearing that you could leverage the use of other people’s credit. What I did is I went to my dad. I didn’t know the details of it, but I was, like, “I knew you had had a credit card that you occasionally used to help me buy books before I paid you back or get the financial aid or whatever it would have been to reimburse you. Can you get me on as an authorized user?” My dad freaked. My dad didn’t want me to get a driver’s license until I was at least eighteen because he didn’t want to have the potential of him ever being sued.
I doubt your parents were like this, but my dad was hyper-alert and sensitive. I do not want to risk anything. I told him that and he said, “What are you going to do my credit?” I was like, “It doesn’t matter. Just have a credit card sent to your address. Put me on as an authorized user and put my address as your address or vice versa so the card gets sent to you. I don’t want your card. I only want your credit history.” He had a good credit history. He didn’t have any lates on that credit card and he had that credit card since 1995. For me, that would have been huge.Depending on where your credit needs help, if you're young or you've missed payments in the past, you can find cards that complement the specific areas of your credit that need to be built up. Click To Tweet
I said, “That’s all I want just to do that.” It’s not a parasitic relationship. I’m not draining you while you are helping me. It does nothing to your credit score at all. It only puts me on as an authorized user and you take the card and cut it up. I don’t even need it.” He’s like, “I will do it.” I will tell you. I looked at my credit score the month before and then the month after. Immediately, a month after, my score jumped up 23 points putting me into a whole new credit bracket for my mortgage giving me better interest rates and everything. It’s saving me a couple of hundred bucks a month just by doing that one thing right there.
To me, that’s a huge testament. It’s still on my credit score. I still have it to this day, which is great. That thing’s old now. It’s awesome because that’s the length in the average age. Even though I have had different things come and go or whatnot, I have realized that I don’t want to cancel any credit cards. I don’t want to cancel anything to destroy that length of time for those accounts and that’s boosted my credit score where now I’m back in the 700s again.
That’s essentially what you are doing. You are helping broker this between people and say, “I will help connect you guys together.” For those that need that credit boost and that need to be an authorized user on somebody else’s credit card, they have got that and vice versa. There are people who are saying, “I want to use this credit card and see how I can cashflow it too.” What would you add to that? Especially for those that are looking to boost their credit score, what’s the process they would go through to do that?
We have our website. It’s TheCreditMarketplace.com and they can go on there. There are a lot of tools and resources on there where they can learn about it. When somebody is ready to buy an actual trade line, they can go onto our Browse Trade Lines page and there’s our inventory laid out there. It will say what card it is, what the limit is, or how old it is. All of our cards have 100% perfect payment history as well as utilization lower than 10% so that our clients aren’t inheriting a bunch of debt from the card.
They can go on there and they can see which cards are available and when they report. Credit cards report once a month. What we would do is add them to the card before the reporting date. The next reporting date, it will show up on their account. They would just add it to their cart, fill out their information, and then we handle the rest.
That sounds easy. Doesn’t it?
They pay for the use of that card for how many months?
We have it set up on our site for two months. You will be reported on there for two reporting periods, but we can also extend that if somebody has a mortgage or some longer-term strategy that they are employing.
I’m applying for a mortgage right now and the credit score, even just a few points makes a massive difference. It does and that’s not in the short-term. If you think about like the interest rates you are paying. Let’s say for example you are off by a couple of points from the bracket. For example, maybe you are at 715. Getting up to 720 or 740 can make a massive swing. Possibly 0.25% to 0.30% or more which depending on how big of a mortgage you are trying to get could be hundreds of dollars a month right there.
That’s a big deal. Even in car loans, it’s the same thing. Car loans can swing and vary quite a bit or even your options vary between getting it straight or getting the car financing industry, which is like a credit card. This is exciting. This is so cool. For those of you that are looking to boost your credit and it doesn’t mean that you have bad credit, but it might be you need an extra boost so that you can get financing. Especially if you are preparing to finance or you are trying to get financing right now, this might be a very urgent thing to do. Even if it’s not that urgent, even if just to boost it up a little bit, it could be so awesome for you. Give them that website one more time for them to check it out.
It’s TheCreditMarketplace.com and you can find this by searching us up or typing in that web address.
Go to their website. Check it out. Get the information you need. This is a simple and easy way to boost your credit especially if you were in a position I was in. If you have the cashflow, everything else is in place and it’s only your credit score. I know there are a lot of you out there like that. You make good money and your credit score is the one that’s been suffering, this could be the answer you have been looking for. Be sure to look at the next episode if you want to know how to cashflow to be on the other side of where you have the credit card and you can create cashflow from your credit card with no risk to you. Make sure you check out our next episode. Bailey, thanks for being on.
Thank you. It was my pleasure.
I hope this is extremely valuable to you and gets your creative juices flowing. Go ahead and make it a great and prosperous week. We will see you later.