How To Improve Your Credit Score - Part 2 - Fix Your Credit
Embed Size (px)
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 Copyright Fix My Credit University WWW.FIXMYCREDITU.COM
- Fixing Credit Starting point
- Know Your Score Credit Karma www.CreditKarma.com
- What You Are Looking For Very Poor300 575 Poor576 640 Fair641 700 Good701 750 Excellent751 850
- Make The Grade Credit Grade (A F) Open Credit Utilization Percent of On Time Payments Average Age of Open Credit Lines Total Accounts Hard Credit Inquiries Derogatory Marks
- Fixing Credit Category 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 grade
- Action items - Do not close old credit accounts. - Do not open up new unneeded credit lines.
- Total Accounts Total Accounts Average 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 Credit Step 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