Many times a client might wonder why do they need the trade lines?,they just want credit repair.
Tell them this: We want to get rid of your negative, we want to add the positive and then tip the scales....I don’t know if you can see that in your head, tip the scale in your favor... it will offset your debt to credit ratio.
We educate and explain the formulas to obtaining peak credit.
It is up to the customer to use that education to their advantage.
Helping improve peak credit is a separate issue from your credit repair.
Two ways to help improve debt-to-credit ratio 1. Pay down debt -OR- 2. Add some tradelines (more spending power)
We guarantee the deletions to help repair your credit, we are recommending these other things that help improve your credit.
How do I know if I need a trade line or new line of credit?
(Do you have $5,000 available credit to borrow currently?)
What is the total of your debt?
What is the total credit you have available to borrow?
Example A: Alex’s Debt = $38,000 Total Credit Available = $100 Total Credit if he paid off credit card balances = $5000.00 He needs at least two trade line’s (he is not able to afford to pay down credit cards).
Example B: Barbara's Debt = $12,500 Credit Available = $4,000 She has enough credit available, but is she purchasing a home? She could use one tradeline to help increase FICO
Example C: Charlie’s Debt = $138,000 Credit Available = $0 Debt is Derogatory, when credit repair is finished, will have no debt and no credit. Scores will go to Zero (O) Recommending all three tradelines
How do some lenders look at these lines of credit? the credit card companies / lenders will see you have a large amt of credit your not using, and that’s how your going to get approved and it will help your scores increase by offsetting the debt to credit ratio.
Trade lines help consumers with no or little credit, to establish credit, quickly and affordable
Debt to Credit Ratio: (Your debt to credit ratio is:)
Area1: how much debt you have overall on your report vs how much available credit.
Area2: each individual credit card limit vs how much debt you have with it.
For optimum Credit Score (30-40% of score is based on this), never have or spend more than 30% of the available credit. (the 30% is your debt) Never max out your credit cards. Pay down the balances until you get below 30% of the available credit - keep $0 balance cards open. For example $1000 credit, don’t spend or have a balance more than $300.
Should I use these trade lines? No— but you can make some small purchases and pay them off to show paid as agreed—that will help your payment history and scores.