Part 2 – Fix Your Credit

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Fixing CreditStarting point

Know Your Score

What You Are Looking For

•Very Poor300 – 575•Poor576 – 640•Fair641 – 700•Good701 – 750•Excellent751 – 850

Make The Grade

Credit Grade(A – F)

Fixing CreditCategory by Category

Open Credit Utilization

The greater the balance you carry each day…

The lower your credit score and grade becomes and the further in debt you get. Interest

rates are designed to keep you in

debt.

Action Items…

- If it is tax time, use your tax money to pay off your

credit cards.

- Ask a friend/family member for a loan and

pay them a lesser interest rate.

Percentage of on Time Payments

Pay bills on time.

Pay bills early.

Credit score and grade increases.

Action items…

- Call your credit card company and ask for

forgiveness and to have the derogatory marks

removed.

- Setup auto bill pay on all of your loans / credit cards

/ monthly bills.

Average Age of Open Credit Lines

Years

Good credit history

High credit score

/ good credit grad

e

Action items…

- Do not close old credit accounts.

- Do not open up new unneeded credit lines.

Total Accounts

Total AccountsAverage age of

open credit lines

Action items…

- Only open lines of credit you will actually use.

- Do not close old credit accounts.

Hard Credit Inquiries

Hard Credit Inquiries = BAD

Student loans

Auto loans

Mortgage loans

Action items…

- Do not apply for multiple mortgage/auto loans etc.

at one time.

- Do not apply for many credit cards at one time.

Derogatory Marks

Derogatory Marks

Credit Score / Credit Grade

Action items…

- Call creditor and ask for them to remove the

derogatory mark.

- Send the Credit Bureau a Credit Dispute Letter to

have said items disputed with the creditor.

Fixing CreditStep by step…

Step 1

Figure out your debt to income ratio.

Total recurring

debt / Gross income

Step 2

Call your current credit card companies and request higher

limits.

Step 3

Throw every available penny at student loans/ credit card

balances.

Step 4

If you need to open a new line of credit, search for great rewards

cards that offer incentives. (cash back, airline miles, etc.)

Step 5

Sign up for a credit reporting service.

(example: Credit Karma)

Step 6

Review your credit history for any errors.

Step 7

Set all of your monthly payments to auto bill pay.

Step 8

Use each of your cards each month sparingly and pay them off

automatically via auto debit.

Step 9

Pay your bills early.

Step 10

Over pay on loans such as auto/mortgage/student.

Make sure to pay

down the principle!

Step 11

If you are looking for a mortgage loan, get it done quickly. Typically

within 30 days.

Step 12

Do not co-sign on any new loans.

Step 13

Shred sensitive documents.

Step 14

Arrange for your credit cards to send you electronic bills and

statements via email.

Step 15

If you owe the IRS come tax time, pay them.

Step 16

Relax

Part 3…Action plans to build healthy credit from the ground up.

• If you want a guide to hold your hand through the process of fixing your credit score, check out Fix My Credit, Build My Credit.

• Save money on expensive credit repair services and do it yourself!

WWW.FIXMYCREDITU.COM