raise your credit score 100 points in forty five days
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RAISE YOUR CREDIT SCORE 100 POINTS IN FORTY-FIVE DAYS Edward Jamison, Jamison Law Group Barry Habib and Sue Woodard,Mortgage Market Guide *Amy Bonis WHAT MAKES UP A CREDIT SCORE? Payment History 35% Balances Carried 30% Credit History 15% Mix Of Accounts 10% Inquiries 10%

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raise your credit score 100 points in forty five days

RAISE YOUR CREDIT SCORE100 POINTS IN FORTY-FIVE DAYS

Edward Jamison, Jamison Law Group

Barry Habib and Sue Woodard,Mortgage Market Guide

*Amy Bonis

what makes up a credit score
WHAT MAKES UP A CREDIT SCORE?
  • Payment History 35%
  • Balances Carried 30%
  • Credit History 15%
  • Mix Of Accounts 10%
  • Inquiries 10%
payment history 35
PAYMENT HISTORY – 35%
  • Bills Paid As Agreed
  • Most Recent 6 Months
  • Highest Weight On Highest Pay History
    • Mortgage
    • Biggest Payment
balances carried 30
BALANCES CARRIED – 30%
  • Keep Balances As Low As Possible
  • Outstanding Balance Versus Available Credit Affects Credit Score

For example:

Credit CardBalanceAvailable Credit

Visa $10,000 $10,000

Visa $0 $10,000

  • Leave Credit Card Balance As Is = Lower Credit Score
  • Spread Balance Between Existing Cards ($5,000 each) = Higher Credit Score *
  • Mortgage / Installment Less Of Factor
credit history 15
CREDIT HISTORY – 15%
  • Longer Credit History = Higher Credit Score
  • Long Credit History Paid As Agreed / Positive Impact To Credit Score
  • Never Close Credit Accounts - Especially If Long History – Or Negative Impact To Credit Score
mix of accounts 10
MIX OF ACCOUNTS – 10%
  • Ideal To Have Installment & Revolving Accounts
  • Mortgage Loan
  • Auto Loan
  • 3 - 5 Credit Cards (More is OK too as long as your balance is not above 30% of the credit limit*)
  • HELOC Should Be Greater Than $40K Or May Report As Revolving Account Versus Mortgage
inquiries 10
INQUIRIES - 10%
  • Shopping Around?

Pulling multiple reports for Mortgage and Auto loans within a 30 day period count only as 1 inquiry. If any additional reports are made after that 30 day window then it goes to a 14 day period in which any inquiries within a 14 day period count as 1 inquiry.*

  • Each Inquiry Averages 5 Points
inquiries that do not hurt the score
INQUIRIES THAT DO NOT HURT THE SCORE
  • Job Related
  • Insurance / Utilities
  • Account Review
  • Personal (www.annualcreditreport.com) and obtain free credit report)
  • Promotional (pre-approved offers in the mail)
blemished credit can be costly
BLEMISHED CREDIT CAN BE COSTLY
  • Low Credit Score = Higher Interest Rate
    • Mortgage Loans
    • Credit Cards
    • Auto Loans
    • Insurance Premiums
steps to take to increase credit score 100 points
STEPS TO TAKE TO INCREASE CREDIT SCORE 100 POINTS
  • Pay Past Due Accounts
  • Get Rid Of Late Payments
  • Have Credit Limits Increased
  • Become An Authorized User
  • Do Not Close Old Accounts – Keep Active
pay past due accounts
PAY PAST DUE ACCOUNTS
  • Pay All Accounts That Are Past Due and Bring the Account Current*
  • Past Due Accounts Can = 1 Day Late
  • Can Severely Hurt Credit Score*
  • May Negotiate a Payoff Balance with You*
  • Past Due Accounts Do Not Include:
    • Judgements
    • Collection Accounts
have late payments removed
HAVE LATE PAYMENTS REMOVED
  • Phone Creditor And Request Late Payments Be Removed
  • Be Persistent – Work Your Way Up The Ladder (Remember to get the names of the people you speak with)*

Always Get A Letter That Documents:

    • Name / Address / Account Number
    • Specific Late To Be Removed
    • On Company Letterhead / Signed By Employee. Ask them to email you the letter today.*
increase credit limits
INCREASE CREDIT LIMITS
  • Every Six Months Request An Increase To Credit Limit On Credit Accounts
  • Have Creditor Base Increase On Credit History
  • If Creditor Must Pull Credit, Do Not Continue; Will Lower Credit Score
become an authorized user
BECOME AN AUTHORIZED USER
  • Ask A Relative Or Friend To Add You To Credit Account
  • Confirm The Following Items:
    • Current Balance Below 10% Of Limit
    • Good Payment History
  • No Risk As Credit Card Goes To Account Holder
do not close accounts
DO NOT CLOSE ACCOUNTS
  • Keep All Accounts Open
  • Use Old Accounts Periodically – Charge Small Amount - Pay off Immediately
  • Closing Accounts With A Long Credit History Will Hurt Credit Score
summary
SUMMARY
  • Borrow When You Do Not Need It
  • Keep Balance To Limit Ratio Low
  • When Creditor Removes Late And Provides Letter – Use Credit Rescore
  • Never Payoff A Collection / Judgment When Applying For A Mortgage Loan
  • Increasing Credit Score By 10 Points = Interest Savings of $100,000 Over 30 Years ($500K Mortgage Loan)
slide17

Call our office to schedule an appointment to speak with a representative that can review your credit with you.

We offer our clients the opportunity for a credit simulation. Nominal fee may apply.

We look forward to working with you and helping your dreams of homeownership become a reality.

~Amy Bonis Home Loans

919-414-4430

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