Presented By: Mick Bernard – President & Founder Twitter.com/911CreditPro Facebook.com/CreditStrategies [email protected].

Presented By: Mick Bernard – President & Founder

Twitter.com/911CreditPro

www.911CreditPro.com

Facebook.com/[email protected]

About Mick Bernard


About Mick Bernard


About Mick Bernard


Credit Quiz

What has the greater impact on your Credit Score?

A) The % you owe on your credit cards.

B) Paying your bills on time.

ANSWER:Paying on time = 35%

% owed on credit cards = 30%www.OnlineCreditStrategies.com

Credit Quiz

What has the greater impact on your Credit Score?

A) You close a credit card account.

B) Your creditor closes your credit card account.

ANSWER:They could both be bad for your score.


Credit Quiz

When does the amount of your income affect your credit score?

ANSWER:Only when you don’t make

enough money to pay your bills on time.

Income is not a consideration in calculating your score


Credit Quiz

What is an account review?

ANSWER: Your existing credit card companies check your credit.

You gave them permission!


Credit QuizWhen does a credit inquiry not have an

impact on your credit score?

ANSWER:Check your own creditCreditor does an account reviewEmployer checks

Insurance company checksApply at more than one mortgage or auto company within a 45 day period


Credit QuizIf you have more than 5 credit card

accounts, what should you do?

A) Nothing

B) Close accounts to 5 or less

C) Go Shopping


Go Shopping!


CREDIT STRATEGIES

• Short Sale

• Foreclosure

• Bankruptcy

• Other...

What are some major negative incidents you may face?


CREDIT STRATEGIES

• Represented by a team of professionals.

• Closure can happen faster - rebuild credit sooner!

• Investors may approve a loan faster.

• Liens negotiated to closure.

What are the advantages of a short sale over a foreclosure?


CREDIT STRATEGIES

• Order a current credit report.

• Added as an authorized user.

• Secured credit card or two.

• Maintain your other credit during the negotiation process.

What can you do after a major credit incident?


YOUR CREDIT SCORE...What Does It Mean?


CREDIT SCORES

• Predicts the statistical chance of a consumer becoming 90 days late or more on a particular loan obligation.

• Each score is specific for each bureau.

• Scores range from...

• 300 to 850 for Classic FICO scores.

• The higher the score, the less the odds of default.

• Generated by CURRENT information in report.

What does the score mean?


CREDIT SCORESConsumer Default: What are the odds?

Credit Score Odds of DefaultAbove 800 1292 to 1760 - 799 597 to 1720 - 759 323 to 1700 - 719 123 to 1680 - 699 55 to 1660 - 679 38 to 1620 - 659 26 to 1500 - 600 8 to 1Below 500 Forget about it.


Credit Score Components

• Past Delinquencies

• Revolving Debt Ratio

• Average Age of File

• Mix of Credit

• Inquiries

What are the determining factors?


credit scoresPast Delinquencies... 35% Of Score

35%

65%

Delinquencies Other...



• Timing of the delinquency

• Level of the delinquency

• Last activity date.

• Past due notices destroy scores

• Missed payments (low vs. high)

Past Delinquencies: 35% of Credit Score


Credit Score ComponentsHow long do delinquencies stay?

Bankruptcy - Chapter 7 & 11

10 yrs. from filing date

Bankruptcy - Chapter 13 7 years from filing date

Tax Liens - Satisfied 7 years from filing date

Late Payments 7 years

Charge Offs 7 years from 1st late pay

Judgements 7 years


credit scoresRevolving Debt Ratio... 30% Of Score



•Credit Cards

• Share debt among many cards

• Use each card regularly

• Do not close credit cards

• Pay-off before closing date

• Get added as an authorized user

Revolving Debt Ratio: 30% of Credit Score



•Credit

• Ask for credit limit increase

• Maintain balances below 10%

• Make sure the limit is reported

Revolving Debt Ratio: 30% of Credit Score


Credit Score ComponentsRevolving Debt Ratio: 30% of Credit Score•Spouse

• Keep Credit Separate

• Transfer debt to one spouse

•Business

• Utilize a business credit

• A true business credit card is not reported on personal credit


credit scoresAverage Age of Credit File... 15% Of Score

www.OnlineCreditStrategies.comwww.911CreditPro.com

http://www.911creditPRO.com/

Credit Score ComponentsAverage Age of Credit File: 15% of Credit

Score


• The longer the history, the better

• Hold on to old credit cards

• Piggyback off Mom to get history

credit scoresThe Mix of Credit... 10% Of Score



• A mixture is best

• 3 - 5 revolving credit cards

• A mortgage account

• Auto loan

• Equity lines of credit

Mix of Credit: 10% of Credit Score


credit scoresThe Mix of Credit... 10% Of Score



• Affect the score for one year

• Can cost 0 - 50 points

• Score is only reduced for first 10 inquiries

• Auto and mortgage inquiries

• Within a 45-day period are treated as one

• Many inquiries don’t count (personal, promotional/job, insurance, etc.)

Inquiries: 10% of Credit Score


A Sample Credit ReportApply what you’ve just learned...



Mick BernardP) 480.502.5554


Twitter.com/911CreditProFacebook.com/[email protected]

Presented By: Mick Bernard – President & Founder Twitter.com/911CreditPro Facebook.com/CreditStrategies [email protected].

Documents