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0:00so what is your credit score simply put it’s a number that gives lenders a
0:04picture your ability to make payments over time
0:06the three core credit reporting agencies are Equifax TransUnion experience what’s
0:12important for you to understand right out of the gate is letters will gauge
0:15your creditworthiness base and the middle school or
0:18not the average between the three so if you’ve got a 580 a 620 in a 680
0:23it’s a 620 the underwriting we use to measure
0:26your ability to qualify for mortgage so I always tell my clients not to make a
0:30mistake obtaining their score
0:32from just one to the credit bureaus get all three
0:35getting the point B which is your approval letter means
0:39not avoiding what on your credit report today you have to get clarity appointed
0:43a
0:43where you’re starting at so many times people that know
0:46that they have derogatory terms on a credit score avoid taking that first
0:50step to avoid the pain
0:51where the reality or the rap but I’m here to tell you
0:54if you had some pass credit issues join the club so many other people have as
0:59well
0:59your normal and amenities to do a few things you can do
1:03right now that will get your score up and the better your score obviously the
1:06better interest rates you’re gonna get so peace to take some action
1:10now the first thing you need to know is what carries the biggest weight on your
1:14score
1:14number one representing 35 percent your score is your payment history
1:19why you can’t change the past where you what you can and do do now
1:23with making diligent timely payment will certainly pay off on your credit report
1:28number two is the percentage available credit you have
1:32and this will have an immediate boosting effect on your credit by not carrying
1:36more than 30 percent
1:38available credit that you have on all your credit cards and if you’ve only got
1:42one
1:42it’s a two thousand dollar limit get that balance to about 600 hours as fast
1:47as you possibly can
1:48and watch what happens your score so just remember you never want to carry
1:52more than 30 percent
1:54available credit to our the you have on your card
1:57number three is the length of time it tied to credit you have
2:00this shows a track record to pay monthly payments over time so what they’re
2:05looking for the banks
2:06our behavior patterns that show responsibility
2:09now
2:10it’s ideal to have multiple are a mix if you will love installment loans like our
2:15furniture
2:16and obviously a mortgage or driver amazing impact want to do get that
2:20mortgage %uh improving your credit
2:21as well as revolving credit things like credit cards now outside the obvious
2:26which is making payments on time in lowering your credit card balances
2:29you probably known that before this video you may have run through a rough
2:33spot
2:34maybe you don’t even have credit cards we want to take some additional measures
2:38to improve your credit score
2:39that are within your control to let me give you a pic of UTEP’s
2:42for saying the Fair Credit Reporting Act will allow you the consumer
2:46give you the right to dispute all items on your credit report cell
2:50I you are also entitled to one free credit report each year I’ve included
2:54the website to access that
2:56go get it immediately you get one free per year now
3:00the Fair Credit Reporting Act to allow you the consumer to dispute derogatory
3:03items
3:04in writing which when you go when you go to all three credit
3:08are reporting agencies website now you can actually dispute those
3:11on why but this protects you the consumer
3:15because it negative information is removed as a result in the consumer’s
3:18dispute
3:19it may not be reinstated reinserted without notifying you the consumer
3:24within five days in your dispute
3:26this also can can I they also cannot retain negative information for
3:31excessive periods of time now
3:33negative information things like late payments bankruptcies
3:36tax liens or judgments may stay on a consumer’s credit report
3:40typically seven years from the date of the delinquency the ZigBee exceptions
3:45are bankruptcies 10 years
3:46in tax liens which would be seven years for Tyler actually paid off
3:50now if you have items in collections you’re in a solid position negotiating
3:55power
3:55so what you can do is pick up the phone call the collections agency and let them
3:59know that you
4:00that you you intend on paying off the collection and Paul
4:03such as long as they provide you with a deletion letter to the
4:07to the credit reporting agencies so now let’s pay them fall
4:11you’re gonna wanna have them commit to giving the credit reporting agencies a
4:15deletion letter
4:17so that a great opportunity feeling
4:19to negotiate with the creditors and finally what other things will have a
4:22proven track record for you time and time again
4:25with people in our credit challenge situations is get yourself to
4:29secured credit cards to this is the first step to working back to getting on
4:34secured credit card in it done right
4:36it will greatly enhance your credit but please listen carefully
4:40and there’s an art form to do this yet to be mindful the percentage abuse
4:45formula which again is 30 percent
4:47tell you can get as much money the you why you can put as much money %uh
4:51that you want on secured our crime sorry with secured credit card so
4:56we’ll do is definitely they’re going to ask for at least three hundred dollars
4:59to begin
5:00go out on charger tank gas put sixty dollars in your tank
5:03and when that same incomes I want you to pay off
5:0750 %uh that sixty hours and leave ten dollars
5:10it as a better impact on boosting your credit now simultaneously take that
5:15second card
5:16go purchase something that people value fifty sixty dollar range
5:19paid off all but ten dollars do that for three months and watch what happens your
5:24credit score
5:25the agencies have algorithms to calculate behaviors
5:29and those calculations are based on ratios not necessarily the amount so
5:34you’ll be on your way to an excellent credit score the bottom line is there’s
5:38always a plan there’s always a way to get back on track and sometimes you just
5:42need a little guidance
5:43and someone help us create that plane with that I’m a Taser credit views in
5:48don’t document blow go ahead take a look at it
5:50please open it so you know what to do czar what they do not want to do is what
5:54the don’t are as you prepare for mortgage
5:57these are some other things that I we do personally for our clients
6:01other committed to obtaining a mortgage that has some credit situations now
6:05I hope this video find you having a fantastic day be like to subscribe to my
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6:24thanks for watching have a fantastic day