RAISE YOUR CREDIT SCORE 100 POINTS IN FORTY-FIVE DAYS

RAISE YOUR CREDIT SCORE 100 POINTS IN FORTY-FIVE DAYS

WHAT MAKES UP A CREDIT SCORE?

• Payment History 35%
• Balances Carried 30%
• Credit History 15%
• Mix Of Accounts 10%
• Inquiries 10%

PAYMENT HISTORY - 35%

• Bills Paid As Agreed
• Most Recent 6 Months
• Highest Weight On Highest Pay History
• Mortgage
• Biggest Payment

BALANCES CARRIED - 30%

• Keep Balances As Low As Possible
• Outstanding Balance Versus Available Credit Affects Credit Score
  For example:
  Credit Card Balance Available Credit
  Visa $10,000 $10,000
  Visa $0 $10,000
• Leave Credit Card Balance As Is = Lower Credit Score
• Spread Balance Between Cards ($5,000 each) = Higher Credit Score
• Mortgage / Installment Less Of Factor

CREDIT HISTORY - 15%

• Longer Credit History = Higher Credit Score
• Long Credit History Paid As Agreed / Positive Impact To Credit Score
• Never Close Credit Accounts - Especially If Long History - Or Negative Impact To Credit Score

MIX OF ACCOUNTS - 10%

• Ideal To Have Installment & Revolving Accounts•Mortgage Loan
• Auto Loan
• 3 - 5 Credit Cards (More is OK too)
• HELOC Should Be Greater Than $40K Or Will Report As Revolving Account Versus Mortgage

INQUIRIES- 10%

• Shopping Around?
• Pull Multiple Reports For Mortgage and Auto 1 Inquiry Within 45 days (for each)
• Each Inquiry Averages 5 Points
• Only First 10 Inquiries Count Each Year
• After 10, Will Not Affect Credit Score

BLEMISHED CREDIT CAN BE COSTLY

• Low Credit Score = Higher Interest Rate
• Mortgage Loans
  -Credit Cards
  -Auto Loans
  -Insurance Premiums

STEPS TO TAKE TO INCREASE CREDIT SCORE 100 POINTS

• Pay Past Due Accounts
• Get Rid Of Late Payments
• Have Credit Limits Increased
• Do Not Close Old Accounts - Keep Active

PAY PAST DUE ACCOUNTS

• Pay All Accounts That Are Past Due
• Past Due Accounts Can = 1 Day Late
• Severely Hurt Credit Score
• Past Due Accounts Do Not Include:-Judgements-Collection Accounts

HAVE LATE PAYMENTS REMOVED

• Phone Creditor And Request Late Payments Be Removed
• Be Persistent - Work Your Way Up The Ladder
• Always Get A Letter That Documents:

-Name / Address / Account Number
-Specific Late To Be Removed
-On Company Letterhead / Signed By Employee

INCREASE CREDIT LIMITS

• Every Six Months Request An Increase To Credit Limit On Credit Accounts
• Have Creditor Base Increase On Credit History
• If Creditor Must Pull Credit, Do Not Continue; Will Lower Credit Score
  

DO NOT CLOSE ACCOUNTS

• Keep All Accounts Open
• Use Old Accounts Periodically - Charge Small Amount - Pay off Immediately
• Closing Accounts With A Long Credit History Will Hurt Credit Score

SUMMARY

• Borrow When You Do Not Need It
• Keep Balance To Limit Ratio Low
• When Creditor Removes Late And Provides Letter - Use Credit Rescore
• Never Payoff A Collection / Judgment When Applying For A Mortgage Loan
• Increasing Credit Score By 10 Points= Interest Savings of $100,000 Over 30 Years ($500K Mortgage Loan)