Credit Exam

On-time Payment History

Clients need to ensure that they are paying their bills on time

Credit Utilization

Clients should only be carrying 10-30% of their available credit as a balance; more and their score will drop, less and they aren't getting the full benefit.

How Can a Client Hurt Their Credit?

Closing Accounts Getting too close to the allotted credit limit Falling below 4 trade lines Applying for too much credit in a short time window Opening installment accounts, Adding New Damage

What is the difference between credit repair and bankruptcy?

Credit Repair and Bankruptcy are apples and oranges. Bankruptcy addresses the debt of your credit history. Credit repair addresses the damage of your credit history.

What is Credit Repair?

Credit Repair is the challenging and validation of the questionable negative information in a credit report that a client disagrees with.

Tradeline

Current and previous credit accounts, including the type of credit it was, The credit limit or amount, Account balances, Account payment history, The date the account was opened and closed, The name of the creditor and status.

Sales-What do you have to ask every client before recovering a report?

Do I have? your permission to recover a copy of your credit history as a proxy for you

What is your contact information?

Email: [email protected] Fax: 1-888-400-4679 Mailing address: P.O Box 110 Oakland NJ 07436, Office phone number: 877-637-2673

Aging of Negative Items in Your Credit Report

Events such as bankruptcy, foreclosure, or late payments are examples of negative items that affect your credit score. These events remain on a credit file for a number of years. A late payment, for example, remains on a credit file for about seven years. As these events age and move into the the past. They are harming your score but not as much as the it did when it first appeared in your history

Changes in the FICO Formula

FICO changes its formula periodically. FICO is continually trying to improve its formula to make it a more accurate indicator of credit risk. The result is the multiple versions of the FICO formula are in use at any one time. When a new version is applied to your credit file, it can result in changes to your score.

What are the Credit Scoring Models?

Fico Score&Ventage score

What makes you different from other companies?

How We Challenge Aggressiveness of Our Challenges Our 90 Day Money Back Guarantee A+ Rated with the Better Business Bureau.

How Does a Client Establish Positive History? The Bullseye!

On-time Payment History Credit Utilization Four Active Tradelines Credit Mix

Our 90 Day Money Back Guarantee

Our guarantee is crystal clear. If there are zero deletions after being in the program for two cycles (90 days) you will get every penny back you put into the program. After you put in a request. You should see deletions at the end of the first cycle of 30-45 days. The guarantee shows you how confident we are in what we can accomplish.

what is FICO PIE

P. A. L. N.C = PEOPLE ALWAYS LIKE NEW CARS, Payment history, Amount Owed, Length of credit history, New Credit, Credit Mix

What is Listed in My Credit Report?

Personal Information Tradeline Inquiries Collection Account Public Records

How is Credit Reported?

REPORTS FROM CREDITORS (COMPANIES WHO PROVIDE YOU WITH CREDIT OR LOAN) PUBLIC RECORDS (DATABASE MAINTAINED BY PUBLIC, CITY, STATE) INQUIRIES

Types of Credit

Revolving Credit Installment Credit Service Credit Charge Cards

Revolving Credit

Secured (cash collateral) Unsecured (no collateral) Retail (authorized through a retailer)

FICO SCORE - FAIR ISAAC CORPORATION: Founded in 1956

THREE DIGITS SCORED IN THE RANGE OF 300 - 850 THE SCORE IS PREDICTING THE LIKELIHOOD OF REPAYMENT USED AS THE STANDARD FOR LENDERS, EMPLOYERS, AND INSURANCE COMPANIES TODAY

What does your service do?

We build individual customized challenges for each item that you disagree with, using the laws of the Fair Credit Reporting Act on your behalf.

How We Challenge

We do not send online disputes or fill in the blank form letters like other companies as this is a very ineffective way of challenging. We write individual customized disputes for each item we challenge starting with a blank sheet of paper, using the FCRA in your favor as these are held to the highest standard of investigation.

Creditor vs Credit Bureau

When we challenge items in certain cases we can and will challenge the creditor If the damage happened by law the creditor must report it, Every one makes mistakes When we challenge to the credit bureaus we use the fcra in our client favor we challenge to the bureaus because they have the final say so

What's worse? Having Bad Credit or No Credit At All?

Whether you have bad credit or no credit, you're a long way away from having good credit!

What's the Major Problem with Credit Reporting?

You are Guilty until proven Innocent

You Have Multiple Credit Scores

You could have different scores if a lender doesn't report to all three credit bureaus or reports updates to them at different times. Some lenders may only report to one or two bureaus (or none at all).

The Fair Credit reporting Act States that you can challenge an item if

You disagree with it If there was a major life event or an extenuating circumstance If you do not feel like this is an accurate representation of you as a borrower

Personal Information

Your name and any name you've ever had Current and former addresses Birthday Social Security Number Phones Numbers Employer

installment credit is

a creditor loans you a specific amount of money, and you agree to repay the money and interest in regular installments of a fixed amount over a set period. Car loans and mortgages are two examples of installment credit.

Credit Saint's famous Balloon Analogy

at Credit Saint we tried to get the questionable negative (the rock) removed from a clients credit report (the balloon). We try to have the credit bureaus take the items off the report. If that happens it gives the client an opportunity to add in positive history (the air in the balloon). The more air the clients puts in the balloon the faster the balloon will rises. The balloon going up is what should happen to a client's credit score. The Balloon is the client credit report. The rock is the damage on the client's credit report.

What is Credit?

borrowed money that you can use to purchase goods and services that you agree to pay back before a payment is rendered , interest may apply.

How Are Credit Scores Created?

collection data from your lenders. Your scores are typically based on things like how often you make payments on time and how many accounts you have in good standing.

What is a Credit Bureau?

companies that collect and maintain consumer credit information then resell it to other businesses in the form of a credit report.

Inquiries

companies that have accessed your credit report. This is a record of you or any lender pulling your credit report. soft inquiries don't hurt your credit score, but it will show up on your report. A hard inquiry will hurt your credit score and will show up on your credit reports.

Why Are Credit Scores Misleading?

credit scores are misleading based on the faulty system in place to confuse the public.

What is Credit Score use for?

designed to predict risk, specifically, the likelihood that you will become seriously delinquent on your credit obligations.

What Do We Need Credit for?

everything

Vantage Score

is used by companies like Credit Karma, and it competes with FICO, but consumers are more likely to see their credit applications evaluated with a credit score created by FICO.

Tax Lien

lien imposed by law upon property, 10 yrs

How Long Does Damage Remain on Credit Report?

soft inquiry no report impact hard inquiry 2yrs Foreclosure 7yrs,

What is a Credit Scoring Model?

statistical analysis of algorithms used by credit bureaus that evaluate your worthiness to receive credit. Scoring calculations are based on payment record, frequency of payments, amount of debts, credit charge-offs and number of credit cards held.

Scoring Models

the information on each of your credit reports from the three major reporting agencies Equifax, Experian and TransUnion that alone can give you three different numbers.

What is a Credit Score?

three-digit number generated by a mathematical algorithm(a formula) using information in your credit report.

Your FICO Score can save you Money?

whether it's a credit card, car loan, student loan, apartment rental, or mortgage — lenders will assess your risk as a borrower. Your FICO Score, along with other information, may affect not only a lender's decision to grant you credit, but also how much credit and on what terms (interest rate, for example).

why cant the credit Bureau be trusted?

you can't trust one to be accurate About 60% of credit reports some sort of error. Lender are not obligated to report to all 3 Bureaus

On the FICO Pie Chart what is New Credit?

10%

Chapter 7

10yrs, remove debt, 4-6 months, delay forecloure

FAIR CREDIT REPORTING ACT - FCRA

1970 Makes sure your credit reports are fair and accurate 3 credit bureau

FAIR AND ACCURATE CREDIT TRANSACTIONS ACT FACTA

2003 right to obtain a free credit report once every 12 months Allows you to dispute information with the companies that reported the information to the Credit Bureaus Prohibits creditors from selling a debt or placing it for collection once they've been notified it's due to identity theft

who created vantage and why?

3 credit bureau

What percentage of your credit is your payment history?

35%

How long does a Bankruptcy stay on your reports for?

7-10

Chapter 13

7yrs, reorganize your debt, 3-5yrs, stop foreclosure

What is a Credit Report?

A credit report is a master document that keeps track of your credit history.

A Thin Credit File

A thin credit file can mean you are new to the credit world, but even someone who has had a mortgage for 30 years can have a thin credit file if they haven't opened other credit accounts or had any negative collection actions taken against them for unpaid bills.

WHAT ARE CREDIT SCORES NOT BASED ON ?

AGE ADDRESS EMPLOYMENT INCOME GENDER RELIGION

7 Reasons Your score Changes Month to Month

Aging of Negative Items in Your Credit Report Changes in Revolving Credit Balances Age of Accounts in Your Credit History Changes in the FICO Formula Applying for New Credit, scoring Models New Damage

balloon analogy

Air- positive history the rock is the weight, balloon is the credit. Add air, make payment on time

COMMON CREDIT MYTHS

All debts are equal on your report Checking your score always hurts it Closing a credit card helps your score You only have one credit score

Collection Account

An unpaid debt referred to a collection agency to collect on the bad debt. This type of account is reported to the credit bureau and will show on the borrower's credit report.

Applying for New Credit

Applying for new credit could lower your credit score.

Age of Accounts in Your Credit History

As your credit file and accounts age, your score can improve. FICO looks not only at your oldest account, but also at the average age of your accounts.

Public Records

Bankruptcies Foreclosure Repossession Judgments Tax Liens

Changes in Revolving Credit Balances

Changes in revolving credit balances can cause credit scores to fluctuate. Credit card balances, for example, can change from month-to-month as you use your card, whether you're paying off your balances in full or not. As your balances go up, your credit utilization goes up.

Bankruptcies

Chapter 7 and Chapter 13

Two Main Types of Credit:

Installment credit, revolving

Types of Damage Found in a Credit Report

Late Payment Charge Off Collection Account Repossession Voluntary Surrender

Type of damage

Late payment- not making payment on time Charge off- no interest, pay in full, no limit Collection- lender sell your debt to a third party

Common Credit Fact

Late payments and defaulting on loans stay even if paid off Your credit does not tell if you are good or bad person Credit does not take into account demographic info

Installment Credit

Mortgages Student Loan Auto Loan Personal Loan

Is bad credit only a result of being irresponsible?

No

Charge Cards

No limit Must be

Who is Vantage?

The Vantage Score model was developed to meet industry needs for a credit scoring model that scores consumers with limited credit histories or who are new to the market

Credit Mix

The different types of credit that could be included in a credit report Example : Credit Cards, Student Loans ,automobile loans and mortgages.

What can you do that I cannot do?

There is no credit repair magic wand. Of course, you can challenge items from your credit on your own. We just do it all the time and have experience in the laws of the FCRA. We are also A+ Rated with the BBB, and you are covered by the 90‐day money back guarantee, if nothing is removed from your credit report within the first 90 days then you would receive a full refund.

New Damage

This is the most critical factor for credit score fluctuations. Even one 30-day late payment can significantly affect your credit score. A late payment stays on your credit file for up to 7 years. Even if you're doing everything else right, a single late payment can have a significant, negative impact on your credit score.

Four Active Tradelines

Tradelines a.k.a Line of Credit, To build optimal Positive history. 4 account with positive history looks better than 1 account with positive. history . Creditors like to see that you can manage multiple tradelines a once

who are the major credit Bureau?

Transunion, Equifax, experian

What is Credit Worthiness?

Using how you borrowed in the past to make an assumption on how we would pay back in the future.

Service Credit

Utilities Insurance Rent