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T-Matt
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I recently attended a couple credit seminars and purchased the audio cd "7 steps to a 720 Credit Score" and I put together this information for you guys. This is some great stuff!! Enjoy!
Steps to a 720 Credit Score
I. Keep credit card balances under 30% of the limits.
Example: $10,000 credit limit.. NEVER let balance go over $3,000
You have 4 options:
1) Ask Credit Card Company to increase your limit
2) Transfer funds to different cards
3) Open another credit card (never open multiple cards in 6 month span)
4) Pay the debt
II. Have at least 3 revolving credit lines.
Have at least 3 credit cards at all times of Visa, AMEX, MC, Discover
Banks and Bureaus like to see that banks have given you credit and you haven’t used it even if you don’t plan on using the entire limit.
18-24 months of no use the card becomes inactive!
Secured Credit Card will be given to ANYONE! (Make sure it reports to all bureaus and make sure the secured card converts to a normal credit card after 18 months)
Do NOT close ANY accounts!
The oldest cards with HIGHEST credit limit have THE GREATEST impact on your credit.
III. Verify accuracy of your reported credit limits.
Credit limits are not reported because CC companies want to protect you as clients, they do not want you to be stolen away by another credit card company. If your credit report isn’t showing your proper limits your utilization rate will be out of wack. This accounts for 30% of your credit number!
IV. Have at least 1 installment loan on your credit.
Installment loans are auto, leases, furniture, and personal property
This is vital if you are in the rebuilding phase of your credit; HUGE impact.
V. Remove all errors from credit.
85% of Americans have an error on their credit report.
25% of the credit reports have an error that stopped them from getting a loan.
Concentrate on high priority errors that have happened in the past 24 months
Types of errors to fix:
Incorrect limits
Duplicate listings of collections or past due accounts
Accounts in the last 24 months
VI. Negotiate for a letter of deletion before paying a bill in collections.
Your recent payment history is more important than your PAST payment history. Stop paying bills until you can pay them in full! A letter of deletion is a letter that states “This collection for Mr. or Ms. Jones should be deleted from the credit report”
***A paid current collection is worse than an unpaid collection past 24 months*** (If you pay an old collection it reinstates the collection and makes it active)
When negotiating your deletion letter determine whether it is in the collection phase or the charge off phase.
If in collection:
Never admit any guilt! For two reasons:
1) Admission restarts limitations by the creditor
2) Not likely to get letter of deletion because you’re admitting debt
DON'T say things like “I realize I have been late, it’s my fault”
Say this exactly..... “I’m calling regarding this account number, it shows that it is a charge or collection and I am concerned because I am careful about my credit”
Once you do negotiate the debt you need to write
“By cashing this check you agree that account number is paid in full AND you will provide a letter of deletion” (This is called a “restrictive endorsement”)
Make copy of check and send through certified mail.
3 possible answers from collections
1) Yes
2) No
3) Only provide you with letter of payment
Hang up before you say “yes” to 2 or 3!!! Call back another day until you are able to get a commitment to a deletion letter and have it faxed to you immediately.
Don’t get angry! Don’t let them talk to you about payment plans or your responsibilities.
If you have a charge off do the following:
1) Send verification form and letter to verify that the debt is yours
2) Send validation letter to prove account belongs in collections (proof of late payment, copy of original signed agreement)
If this does not happen within 30 days the item will be removed off your credit!
Collection Companies may only contact you from 8am-9pm, must respect your right to contacted in writing only, and must be honest with you.
VII. Create a structured plan to protect your credit.
10 points:
1) Create budget—Write down and log your expenses! Account for every penny! Write down everything in your monthly expenses. It is better to be a realist than an optimist!
2) If in debt live like a rich person—Be frugal. How much money do you have left at the end of a month?
3) Use technology to keep bills current—Many banks offer online payment options, make use of it!
4) Review monthly statement—Each month review them and make sure you’re not exceeding 30% utilization rate, look carefully at all charges, this is where identity theft starts!
5) Pull credit once every 6 months—Inquiries hurt your credit ONLY when you go to multiple locations and have your credit pulled. Look for late payments and misreported credit limits.
6) Use same name when applying for credit—Same first, middle, and last name each and everytime!
7) Avoid being cosigner—This is critical to your credit! It has the same impact on your credit in either event!
8) Keep accounts active—It does no good to tuck credit cards in drawer and not use them, eventually cc will show inactive and it takes away from the average age of your accounts. Even if you have to pay a utility bill on your CC, DO IT.
9) Protect credit during and after divorce—Refinance your home and cancel ANY joint cc accounts!
10) Review steps regularly!
The 3 Credit Bureaus contact information:
Equifax Credit Bureau
P.O. Box 740241
Atlanta GA 30374-0241
(800) 685-1111
(770) 612-3200
Experian
P.O. Box 9701
Allen TX 75013
(888) 397-3742
Trans Union
Consumer Disclosure Center
P.O. Box 2000
Chester PA 19022
(800) 888-4213
To Apply for a Secured Credit Card contact:
Joseph Duncan
Wells Fargo Fox Hills Office
5899 Green Valley Circle
Culver City, CA 90230
Tel: 310.568-0292 (Direct)
Fax: 310.641.3817
[email protected]
www.wellsfargo.com/biz/
or
Kristin Koptyra
Citibank Pasadena-Garfield Financial Center
315 E. Colorado Blvd
Pasadena, CA 91101
Tel: 626 585-3645
Fax: 626 449 6684
[email protected]
To obtain a copy of the forms mentioned here go to
http://www.7stepsto720.com/index.php
sign up, create a user name and you will see a link for the forms on the left side of the window.
T-Matt
Steps to a 720 Credit Score
I. Keep credit card balances under 30% of the limits.
Example: $10,000 credit limit.. NEVER let balance go over $3,000
You have 4 options:
1) Ask Credit Card Company to increase your limit
2) Transfer funds to different cards
3) Open another credit card (never open multiple cards in 6 month span)
4) Pay the debt
II. Have at least 3 revolving credit lines.
Have at least 3 credit cards at all times of Visa, AMEX, MC, Discover
Banks and Bureaus like to see that banks have given you credit and you haven’t used it even if you don’t plan on using the entire limit.
18-24 months of no use the card becomes inactive!
Secured Credit Card will be given to ANYONE! (Make sure it reports to all bureaus and make sure the secured card converts to a normal credit card after 18 months)
Do NOT close ANY accounts!
The oldest cards with HIGHEST credit limit have THE GREATEST impact on your credit.
III. Verify accuracy of your reported credit limits.
Credit limits are not reported because CC companies want to protect you as clients, they do not want you to be stolen away by another credit card company. If your credit report isn’t showing your proper limits your utilization rate will be out of wack. This accounts for 30% of your credit number!
IV. Have at least 1 installment loan on your credit.
Installment loans are auto, leases, furniture, and personal property
This is vital if you are in the rebuilding phase of your credit; HUGE impact.
V. Remove all errors from credit.
85% of Americans have an error on their credit report.
25% of the credit reports have an error that stopped them from getting a loan.
Concentrate on high priority errors that have happened in the past 24 months
Types of errors to fix:
Incorrect limits
Duplicate listings of collections or past due accounts
Accounts in the last 24 months
VI. Negotiate for a letter of deletion before paying a bill in collections.
Your recent payment history is more important than your PAST payment history. Stop paying bills until you can pay them in full! A letter of deletion is a letter that states “This collection for Mr. or Ms. Jones should be deleted from the credit report”
***A paid current collection is worse than an unpaid collection past 24 months*** (If you pay an old collection it reinstates the collection and makes it active)
When negotiating your deletion letter determine whether it is in the collection phase or the charge off phase.
If in collection:
Never admit any guilt! For two reasons:
1) Admission restarts limitations by the creditor
2) Not likely to get letter of deletion because you’re admitting debt
DON'T say things like “I realize I have been late, it’s my fault”
Say this exactly..... “I’m calling regarding this account number, it shows that it is a charge or collection and I am concerned because I am careful about my credit”
Once you do negotiate the debt you need to write
“By cashing this check you agree that account number is paid in full AND you will provide a letter of deletion” (This is called a “restrictive endorsement”)
Make copy of check and send through certified mail.
3 possible answers from collections
1) Yes
2) No
3) Only provide you with letter of payment
Hang up before you say “yes” to 2 or 3!!! Call back another day until you are able to get a commitment to a deletion letter and have it faxed to you immediately.
Don’t get angry! Don’t let them talk to you about payment plans or your responsibilities.
If you have a charge off do the following:
1) Send verification form and letter to verify that the debt is yours
2) Send validation letter to prove account belongs in collections (proof of late payment, copy of original signed agreement)
If this does not happen within 30 days the item will be removed off your credit!
Collection Companies may only contact you from 8am-9pm, must respect your right to contacted in writing only, and must be honest with you.
VII. Create a structured plan to protect your credit.
10 points:
1) Create budget—Write down and log your expenses! Account for every penny! Write down everything in your monthly expenses. It is better to be a realist than an optimist!
2) If in debt live like a rich person—Be frugal. How much money do you have left at the end of a month?
3) Use technology to keep bills current—Many banks offer online payment options, make use of it!
4) Review monthly statement—Each month review them and make sure you’re not exceeding 30% utilization rate, look carefully at all charges, this is where identity theft starts!
5) Pull credit once every 6 months—Inquiries hurt your credit ONLY when you go to multiple locations and have your credit pulled. Look for late payments and misreported credit limits.
6) Use same name when applying for credit—Same first, middle, and last name each and everytime!
7) Avoid being cosigner—This is critical to your credit! It has the same impact on your credit in either event!
8) Keep accounts active—It does no good to tuck credit cards in drawer and not use them, eventually cc will show inactive and it takes away from the average age of your accounts. Even if you have to pay a utility bill on your CC, DO IT.
9) Protect credit during and after divorce—Refinance your home and cancel ANY joint cc accounts!
10) Review steps regularly!
The 3 Credit Bureaus contact information:
Equifax Credit Bureau
P.O. Box 740241
Atlanta GA 30374-0241
(800) 685-1111
(770) 612-3200
Experian
P.O. Box 9701
Allen TX 75013
(888) 397-3742
Trans Union
Consumer Disclosure Center
P.O. Box 2000
Chester PA 19022
(800) 888-4213
To Apply for a Secured Credit Card contact:
Joseph Duncan
Wells Fargo Fox Hills Office
5899 Green Valley Circle
Culver City, CA 90230
Tel: 310.568-0292 (Direct)
Fax: 310.641.3817
[email protected]
www.wellsfargo.com/biz/
or
Kristin Koptyra
Citibank Pasadena-Garfield Financial Center
315 E. Colorado Blvd
Pasadena, CA 91101
Tel: 626 585-3645
Fax: 626 449 6684
[email protected]
To obtain a copy of the forms mentioned here go to
http://www.7stepsto720.com/index.php
sign up, create a user name and you will see a link for the forms on the left side of the window.
T-Matt
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