Financial Education :: Credit :: Personal :: Courses :: Free DIY Credit Repair Course - Learn How To Repair Your Own Credit :: Module 7: Raising Your Credit Score

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Financial Education :: Credit :: Personal :: Courses :: Free DIY Credit Repair Course - Learn How To Repair Your Own Credit :: Module 7: Raising Your Credit Score

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• Financial Education :: Credit :: Personal :: Courses :: Free DIY Credit Repair Course - Learn How To Repair Your Own Credit

Downloads

• Credit Secrets Revealed on Getting APPROVED for Financing.pdf
• Credit Deputies Free Credit Boost Guide.pdf

Resources:

• Get Your Credit Reports
• Credit Boost Guide
• Rebuild Credit List: Bad Credit Cards, Loans For Bad Credit, Rent Reporting, & more
• Milestone Unsecured Credit Card For Less Than Perfect Credit
• Indigo Unsecured Credit Card For Rebuilding Credit
• OpenSky Secured Card

Module 7: Raising Your Credit Score

Credit Scores

• Credit scores measure creditworthiness
• FICO credit scores range from 300 to 850
  • Poor: 300 ⪼ 579
  • Fair: 580 ⪼ 669
  • Good: 670 ⪼ 739
  • Very Good: 740 ⪼ 799
  • Exceptional: 800 ⪼ 850

The 5 Credit Score Factors

• Payment History: 35%
• Total Amount Owed: 30%
• Length of Credit History: 15%
• Types of Accounts: 10%
• Recent Credit Activity: 10%

Where to get it?

• Obtain your credit score from:
  • A credit card or loan statement or online account
  • A non-profit credit counselor
  • A credit score service
  • A credit bureau or FICO
• Scores from different sources may vary slightly

Deleting Negative Accounts from Reports

• Dispute and complaint process can remove info from report
• Raises your credit score
  • Improves payment history
  • Lowers total amount owed on report
• If prior disputes did not remove all negative info:
  • Wait 30 - 90 days and begin again
  • Start with a new dispute reason for the negative account
  • Send a new round of up to 6 dispute letters

Secured Loans and Credit Cards

• Set up secured loans or credit cards with a cash deposit
• Use the card and make timely payments
• Ensure the lender reports to all 3 credit bureaus
• Raises your credit score
  • Improves payment history
  • Increases mix of account types

Retailer Credit Cards

• Sign up for a store card at your choice of retailer
• Use the card and make timely payments
• Ensure the lender reports to all 3 credit bureaus
• Raises your credit score
  • Improves payment history
  • Increases mix of account types

Authorized User

• Become an authorized user on a credit card of a relative with good credit history
• Adds entire history of account to your credit report
• Raises your credit score
  • Improves payment history
  • Potentially increases credit history length

Payment Credit for Rent or Utility Bills

• Sign up for a service that reports rental or utility bill payment info to the credit bureaus
• Check fees to weight cost of service against potential score increase benefit
• Raises your credit score
  • Improves payment history

Paying Down Debt

• Make a budget for paying down debt to get it below the 30% credit utilization level
• Raises your credit score
  • Improves payment history
  • Lowers total owed

General Tips

• Make all payment on time (set reminders)
• Keep your credit utilization low and pay down balances
• Request an increase to your credit limit
• Keep older accounts open even if unused
• Be selective about opening new accounts
• Diversify your mix of account types

Why It Matters

• Your credit score impacts your ability to:
  • Obtain a loan
  • Get hired for a job
  • Rent a home
• Higher credit scores qualify you for lower interest rates
  • Save tens of thousands of dollars over the life of just one loan

My Tasks

Complete The Following Steps

• Obtain your current credit score
• Complete steps 1 - 5 in your workbook
• Plan a budget to make monthly payments on time
• Make a plan to pay down large balances
• Choose other actions from this module to raise your score

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