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Legal Credit Manipulation
“The 5 Factors That Compose Your Credit Score & Secrets Used to Manipulate Them to Your Advantage”
1. Payment History
• This is the foundation, if you’re going to have bad credit, its best for it to be past bad credit. We can work on that. The one thing you have to do is make sure of is that your current debt and bills are being paid on time. You can’t forget ANY bills, even the $15-$20 bills. I’ve seen people who pay their mortgage and car notes religiously. But when it comes to their miscellaneous debt, they put it off or forget. They rationalize that if the bill is only $15 it doesn’t affect them as much as their mortgage. Not entirely a true statement.
2. Amount of Debt
• Once again, some of this will sound contrary to main stream financial advice. I restate again, advice is right or wrong according to your objectives.. If you’re trying to become debt free, then getting more credit may not be the best step for you to take.. On the other hand, obtaining more credit may be exactly what the doctor ordered.
3. Time Length of Credit File
• Length of your credit file. More specifically, length of time accounts have been on your file. The concept is fairly simple. The longer an account has been on your file, the longer you’ve been managing your credit (hopefully wisely). That’s why you throw off red flags if you’re say 35yrs old with no credit. Eighteen, maybe a potential creditor can understand because they’re just starting out in life. But otherwise, you’re 35 and no credit, what have you been doing all this time.
4. Pursuit of Credit/Inquiries
• Each time you apply for credit, whether for a car, credit card, or whatever, an inquiry is left on your file. This tells potential creditors who and where you have been applying for credit with. Too many inquiries within a certain period of time is bad for your score. It becomes even morse if you have many inquiries, but no accompanying open accounts for them. A creditor may think that there was good reason why you were turned down by other creditors and deny you based upon that assumption.
5. Types of Credit
• Today we discuss the final factor involved in determining your credit score. The type(s) of credit you have on your file, your credit mix. This is important because creditors like to see that you’re able to manage different types of responsibilities. Someone with a $50k mortgage and other types of credit would probably look better to creditors than someone with just $50k in credit cards.
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