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Try this sweet trick to increase your credit line by 1,000% and your credit score

Try this sweet trick to increase your credit line by 1,000% and your credit score too!

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I actually increased my Visa line of credit from $300 to $10,000 in one year. This was without a job and without having great credit. I know this sounds like one of those stupid advertisements, but I'm not selling anything, so keep reading and I'll tell you exactly how to do it.

As I mentioned, when I started this process the highest credit line I had was a $300 Visa through my bank, which had once been a secured Visa and became unsecured after a year. My credit was so-so, not great, but not terrible either.

I learned about this procedure through a friend and it worked great. After one year of doing it I had an unsecured credit line of $10,000, and after the second year I had another with the same amount. Heres exactly what I did step by step.

The trick takes place with secured credit cards. You can get one from your bank, usually with as little as $100 or so to start. You could start this system with as little as that, but I highly recommend trying to save up $1,000 or so to start. The more the better, but I started with $1,000.

I first took my $1,000 to the bank and applied for a secured Visa credit card. They took my money, gave me the info and said the card would be in the mail.

For those who don't know, a secured card means that the bank will issue you a credit card, but the amount of credit issued will only equal the amount of money you give them. So basically they are securing their risk of giving you credit by your own cash. After some time (usually a year) if you've paid all your credit payments on time they will give you your cash back and change the card from secured to unsecured. Now you have a real credit card.

Anyway, a week or two later I received my $1,000 secured Visa card in the mail. Now you can either use this Visa as a credit card and buy things or you can borrow money against it, just like you can with a normal credit card.

After getting my card I immediately went to my bank and got $1,000 of cash off of my secured Visa. So in one transaction I maxed my account, but now had $1,000 in cash and the secured credit card.

I then took that $1,000 cash and used it to increase my credit line from $1,000 to $2,000. I didn't make a payment on the Visa, instead I added it to my credit line and doubled it. So now I had a credit line of $2,000 on which I owed $1,000.

Now I simply did the exact same thing over and over again. I got another $1,000 out and used it to increase the limit to $3,000, then $4,000, all the way up until I hit the max of $10,000.

Once I hit $10,000 and maxed out, I now owed $9,000 on this credit card, which is a lot of debt. The monthly payments on this was around $260. Thats a lot of money and if I couldn't have afforded to pay it, I would have just used the Visa to get more cash and paid the payment with that. But luckily I could afford it, at least for a few months.

Finally after a year, just as anticipated, they turned my secured Visa into an unsecured Visa. Once that happened they sent me a check for $10,000. Remember all that money you've been sending in has just been for them to hold as security against this card. Its still your money!

So after one year I now had a $10,000 check and an unsecured $10,000 credit card with $9,000 of debt on it. I had three choices here. One, use the $10,000 for whatever I wanted. Two, use the $10,000 to entirely pay off the $9,000 in debt and then pocket the other $1,000. Or three, take the $10,000 to another bank, use it to open a secured line of credit (maxed from the start) and start the process all over again.

Since the whole point of this was to increase my credit lines, I skipped option one and refused to spend the money on goods (although it was tough!) The second option was great. I could have paid off the entire credit card debt and had a $10,000 open line of credit and $1,000 cash.

Option three also sounded good, because it would allow me to eventually have two $10,000 credit lines at two different banks.

What I chose to do was a combination of option 2 and option 3. I paid off $5,000 of the Visa credit (leaving $4,000 of debt) and used my other $5,000 to start the new line of secured credit at the second bank.

The reason I did it this way is because when you're building your credit you don't want to have a zero balance. You want to keep it around 50% or so and make your payments on time. This shows that you're responsible with credit and you're very likely to be given a higher limit.

Needless to say, with two $10,000 unsecured credit cards, both only 50% full, my credit score shot through the roof. Remember, it wasnt long before this that the highest credit limit I had was $300!

Posted in Home Improvement Post Date 05/23/2017


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