How To Improve Your Credit Score - Part 2 - Fix Your Credit
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Want to know how to improve your credit score? You're in the right spot. In terms of how to fix your credit, do it yourself credit repair is the best choice. This 4 part presentation will show you how to rebuild credit, how to raise your credit score, and even build credit from scratch. Learn about credit ratings, credit history, credit repair, what is a good credit score, what is a bad credit score, and so much more! - From Fix My Credit University www.fixmycreditu.com
Transcript of How To Improve Your Credit Score - Part 2 - Fix Your Credit
Part 2 – Fix Your Credit
CopyrightFix My Credit University ™
WWW.FIXMYCREDITU.COM
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
