Who do you know that's experienced...

• A Life Event
• Job Loss
• Health Issues
• Unexpected Expenses
• Being A Victim
• Identity Theft
• Data Entry Error
• Merge File Error
  
  BAD THINGS can cause GOOD PEOPLE to have BAD CREDIT!

Bad Credit can be improved if it is outdated...

• Negative items that are 7 to 10 years old from date of last activity
• Collections - 7y
• Charge-Offs - 7y
• Bankruptcy
• Chap 7 & 11 - 10y
• Chap 13 - 7y
• Judgments - 7y
• Tax Liens - 7y
• Inquires - 2y

The Legal Definition...

Credit is the provision of resources (such as granting a loan) by one party to another party where that second party does not immediately pay the first party for the resources in full, thereby generating a debt, and instead arranges either to pay for or to return those resources (or equivalent value) at a later date. The first party is called a creditor, also known as a lender. The second party is called a debtor, also known as a borrower.

The "Everyday" Definition...

Credit is when you borrow money and promise to repay at a later time or over time

 Typically a credit review is suppose to determine if an applicant is a:

•  Good Risk
•  Bad Risk
  
  Sometimes a credit review can make you feel like a:
  Good Person or Bad Person

How do you feel when your credit is reviewed?

What is Your Score? 

Number generated from the data contained within credit report used to determine credit worthiness of an applicant. As data within credit report changes, so does the credit score. FICO is the Lender's version of credit score. Score ranges from 300 to 850. Can vary from credit report and credit software. Score below 680 typically mean credit issues. Score above 680 typically mean credit opportunities. Normally cost above $15 per score. "FAKO" is the consumer version of credit score. Normally cost around $5 per score.

Contain history of accounts, payment activity, balance

• 35% Payment History
• 30% Amounts Owed
• 15% Length of Credit History
• 10% New Credit Activity
• 10% Credit Mix

Credit Reports: 

Typically structured:

• Identification Information
• Account/Trade Lines
•  Collections
• Credit Inquires
• Public Records

Types of Reports

• Single
• Tri Merged

Assets: 

Secured 

• Residential Real Estate
• Investment Real Estate
• Commercial Real Estate
• Consumer Vehicle
• Commercial Vehicle

Unsecured

• Cash
• Business Startup
• Consumerables
  

Bureaus:

• Maintain records of consumer credit histories
• Collected data from subscribers and public sources
• Major Companies
• Equifax
• Experian
• TransUnion
  

FICO Score   Chance of being 90 day+ Late

800 and above  1 in 1300

760 to 799  1 in 600

720 to 759  1 in 300

700 to 719  1 in 125

680 to 699  1 in 55

660 to 679  1 in 40

620 to 659  1 in 25

500 to 619  1 in 8

400 to 499  1 in 1

 Why use Credit Improvement...

• Credit Improvement can resolve inaccurate and outdated entries
• Credit Improvement can ethically resolve negative entries that are accurate
• Credit Improvement can legal resolve collections and charge-offs
• Credit Improvement can increase your credit scores
  

What to do in Credit Improvement:

1. Get a current copy of your credit reports and FICO scores
2. Review the entire report for accuracy
3. Note items negatively impacting credit score
4. Contact Credit Bureaus for any items that are TRULY inaccurate —Disputing is only for inaccurate entries —Disputing accurate information is illegal
5. Contact Original Creditor for any items that are accurate but negatively impacting score
6. Contact Collection Agency for any item that are accurate and still require money to be paid
7. Prepare all communications in written
8. Track items on a calendar and allow 30 to 45 days between communications

How long does Credit Improvement take:

• Credit Improvement can take between 45 to 180 days
• Persistence, Patience and Planning are crucial