Credit Repair Tips

Credit Repair Tips
Proven Strategies For Increasing Credit Scores

Achieve Your Dreams and Goals

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FULL-SERVICE CREDIT REPAIR & FINANCIAL COACHING STARTS WITH A FREE CREDIT ASSESSMENT, $1 CREDIT REPORT AND A FREE CONSULTATION

CREDIT MONITORING FOR OVERALL FINANCIAL HEALTH

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Learn How Credit Scores Work And Turn Denials Into Approvals
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Develop Good Financial Habits for a LIFETIME

PHASE 1: Follow These Proven Strategies Throughout Your Credit Repair Process

4 TIPS TO START REPAIRING YOUR CREDIT

1) START WITH CLEAR FINANCIAL GOALS IN MIND
Our mission is to empower you to achieve your financial dreams and goals. This includes:

repairing your credit report by removing negative information that doesn't comply with federal and state consumer laws
building a stronger credit profile by implementing personalized strategies based on your credit history and current financial goals
positioning you to qualify for better financing with higher approval limits, lower interest rates, longer repayment periods and lower fees
providing you with knowledge to make informed financial decisions with confidence

2) COMMIT TO INVESTING 6-9 MONTHS TO BUILD A STRONGER FINANCIAL FUTURE

Each client's credit journey is unique since every consumer's credit profile contains different information, challenges and opportunities
The FREE Consultation includes an overview of your credit score and financial habits
The Credit Audit & Analysis includes a review of your credit report, a personalized strategy and an estimated timeline for completion
It typically requires 6-9 months to correct errors that are hurting scores and implement new strategies to increase them
Credit score improvements may begin appearing within 30, 60 or 90 days, depending on how quickly lenders and credit bureaus update your information
However, since negative credit history develops over time, improving your credit profile also requires time and consistency
Federal and state consumer laws allow credit bureaus and lenders time to investigate and respond to disputes, therefore we cannot offer a "quick fix" program

3) PLACE A SECURITY FREEZE WITH THE 3 MAJOR CREDIT BUREAUS

Your credit report includes hard inquiries and soft inquiries
Hard inquiries occur when you apply for new credit and remain on your credit report for 2 years
Hard inquiries include applications for credit cards, auto loans, mortgages and personal loans
Hard inquiries temporarily lower your credit score and may reverse the progress that we're making on your behalf
Soft inquiries occur when your credit is reviewed for informational or promotional purposes and do not affect your credit score
Soft inquiries include pre-approved offers, employment screening, insurance quotes, rental applications, account reviews by current lenders or checking your own credit
Placing a security freeze with the 3 major credit bureaus helps prevent unauthorized hard inquiries during your credit repair process
After our process has been completed, you may lift the security freeze temporarily, permanently or leave it in place indefinitely to encourage you to make informed financial decisions

EQUIFAX SECURITY FREEZE
EXPERIAN SECURITY FREEZE
TRANSUNION SECURITY FREEZE

4) ENROLL IN A 3-BUREAU CREDIT MONITORING ACCOUNT

Credit monitoring provides access to your credit reports, score updates, fraud alerts, identity theft protection and other benefits
Based on your current financial goals, we may recommend FICO scores for mortgage and auto lending or VantageScore for overall credit improvement
Credit monitoring is billed separately by Credit Hero Score or a third-party service provider
The first credit monitoring report allows us to complete your Credit Audit and Analysis
Maintaining an active credit monitoring account allows us to monitor monthly score changes and updates to your credit history
We send disputes to the credit bureaus, original creditors and other third parties after identifying reporting discrepancies, inaccurate information, fraudulent transactions and potential identity theft
Continuing credit monitoring after completing Credit Repair & Financial Coaching is highly recommended for maintaining a healthy credit profil

RECOMMENDED 3-BUREAU CREDIT MONITORING SERVICES

VANTAGESCORE FOR OVERALL CREDIT IMPROVEMENT

FICO SCORE FOR REAL ESTATE

FICO SCORE FOR AUTO/VEHICLE LOANS

6 TIPS TO INCREASE YOUR CREDIT SCORE

5) PAY YOUR BILLS ON TIME EVERY MONTH

Your payment history is 35% of your credit score calculation and consistently paying on time contributes to higher scores
Setting up automatic payments can help prevent missed or late payments
Paying your credit card accounts by the statement closing date (instead of the due date) improves utilization by reporting a lower outstanding balance to the credit bureaus
Missed payments that are LESS than 30 days late usually result in late fees, and lenders could decrease your approved limit, which has a negative impact on utilization
Missed payments that are MORE than 30 days late are usually reported to the credit bureaus, which can significantly lower your credit score and reverse the progress that we're making on your behalf

6) PAY DOWN YOUR CREDIT CARD BALANCES TO 25% OR LOWER

Your credit utilization ratio has the second highest impact on your score (30%)
It compares your current credit card balances to your approved credit limits
A lower utilization ratio usually improves your credit scores and may allow you to qualify for better interest rates
When paying down balances, start with the credit card with the highest interest rate and pay down the balance to 25% of the approved credit limit
Then move on to the card with the next highest interest rate and continue until every revolving account is at or below 25% utilization
If any of your credit card issuers don't automatically lower your interest rate, contact them to request an account review
As your rates improve, continue paying balances down to gain a sense of accomplishment
A balance of 1%-10% will continue reporting sufficient activity for healthy credit scores

7) KEEP YOUR CREDIT CARD ACCOUNTS OPEN AND IN GOOD STANDING

Length of credit is 15% of your score and refers to the average amount of time your accounts have been open
Open accounts with positive payment histories contribute to a healthy credit profile
If you no longer use a credit card on a regular basis, consider using it to pay expenses that you normally pay directly from your bank account or use it to make occasional small purchases
Automatically pay the balance in full after each use to avoid incurring additional debt
Active accounts with small balances that are paid on time contribute to both a positive payment history and a healthy utilization ratio (these two factors combined are 65% of your credit score)

8) MAINTAIN A GOOD CREDIT MIX

Credit mix is 10% of your score and refers to the types of accounts that are included in your credit profile
Lenders prefer to see that consumers can successfully manage different types of credit including at least 2-3 open credit cards, an installment loan and a mortgage
Your personalized financial strategies may include recommendations for improving your credit mix based on your credit history and long-term goals

9) CONTINUE MAKING REGULAR PAYMENTS ON YOUR INSTALLMENT LOANS

Paying off an installment loan early may save money if there's no prepayment penalty
However, fewer payments could shorten both your payment history and the length of time that the account stays open
It could also eliminate installment loans from your credit mix, when only one installment loan is being reported
Considering these factors, an early payoff would most likely decrease your credit score for a short time
Since you're working towards a higher credit score, continue making your regular monthly payments until credit repair has been completed

10) REQUEST HARDSHIP ASSISTANCE WHEN NEEDED

Many lenders offer hardship programs for qualified borrowers experiencing financial difficulties
Eligible situations may include job loss, unexpected medical expenses, divorce or other documented hardships
Depending on the lender, assistance may include temporary payment suspension, reduced monthly payments or lower interest rates
This usually allows you to stay current on your account without damaging your credit score
Contact your lenders promptly if you believe you qualify, explain your situation, request assistance and review all options before missing any payments

CLIENT #1

50 POINT AVERAGE SCORE INCREASE ACROSS ALL THREE CREDIT BUREAUS
✅ LATE PAYMENTS WERE REMOVED
✅ AUTHORIZED USER ACCOUNTS WERE ADDED
Each client's results may vary

CLIENT #2

CLIENT #3

6 TIPS TO PROTECT YOUR CREDIT SCORE

11) AVOID APPLYING FOR NEW CREDIT UNTIL CREDIT REPAIR HAS BEEN COMPLETED

The accounts that are included in your Credit Audit & Analysis establish a starting point for measuring progress
Applying for new credit triggers a hard inquiry that may reduce your credit score for 1-2 years and reverse the progress that we're making on your behalf
If opening a new account would benefit your overall goals and strategy, we'll discuss the appropriate timing
Until then, avoid applying for new credit during your credit repair process

12) AVOID CLOSING ACCOUNTS THAT CONTRIBUTE TO A HIGHER CREDIT SCORE

The accounts that are included in your Credit Audit & Analysis establish a starting point for measuring progress
Existing accounts with positive payment histories, low utilization and a long credit history contribute to a healthy credit profile
Closing an account that has a positive credit history could lower your score and reverse the progress that we're making on your behalf
Keep accounts with a positive credit history open to maximize your credit score

13) AVOID CREDIT CARD BALANCES HIGHER THAN 25% OF THE APPROVED LIMIT

The credit card utilization ratio compares your current balance to your approved credit limit
Utilization between 1%-30% is usually associated with higher credit scores
Set a goal to keep each credit card balance at or below 25% of the approved limit
If you regularly spend more than 25%, making multiple payments during the billing cycle may help you stay at or below 25%
Requesting annual credit limit increases without incurring additional spending will also help you maintain a healthy utilization ratio

14) AVOID DENIAL LETTERS BY CONFIRMING MINIMUM REQUIREMENTS

Most credit card companies and other lenders publish their minimum credit score requirements online
There may be different requirements for secured vs. unsecured credit cards and other lines of credit
Before applying, monitor your progress and determine whether you have met the requirements
Hard inquiries from denials usually reduce your credit score for 1-2 years
If you don't qualify, don't apply; this is one of the best ways to avoid losing points

15) AVOID LEAVING PAID CHARGE-OFFS AND COLLECTIONS ON YOUR CREDIT REPORT

Charge-offs with the original creditors and collection accounts with third-party debt buyers have a negative impact on your credit score for up to 7 years
This impact lessens over time as you add accounts and implement better financial habits
Before paying a charge-off or collection account, confirm that it has been properly verified by the credit bureaus and supporting documentation has been received
Negotiate and request written confirmation of the amount required to satisfy the debt
When paying a charge-off to the original creditor, also request a written agreement to update the status to "paid" when the debt has been satisfied or consider removing the charge-off notation, although they're not required to do so
For non-medical collections, also request a written "pay-for-delete" agreement to remove the account from your credit report when the negotiated amount has been satisfied, although they're not required to do so
If a written agreement for a status update or removal will not be provided, pay the negotiated amount and allow the "paid" notation to contribute to a positive payment history, which partially offsets the decrease in your credit score

16) AVOID INACCURATE MEDICAL COLLECTIONS

Review medical invoices to ensure that all services were provided and there is no unauthorized interest, late fees or collection costs
Paid medical collections are removed from consumer credit reports, therefore negotiate and request written confirmation of the amount required to satisfy the debt
Medical collections under $500 are no longer reported to the credit bureaus

BONUS CREDIT REPORTING VS DEBT REPAYMENT

17) A DELETED ACCOUNT MAY STILL BE A VALID DEBT

Different laws apply to credit reporting and debt repayment
Accounts may be deleted from your credit report if the company that furnished the information doesn't comply with federal and state consumer laws
Even though removing a negative account avoids impacting your credit score, it does not necessarily eliminate the legal obligation to repay the debt
Depending on the applicable laws and the age of the debt, creditors may still pursue collection through available legal remedies
Certain lenders, including mortgage lenders and government-backed loan programs, usually maintain their own databases and may require previously deleted debts to be resolved before approving financing
If you're unsure whether to pay a deleted account, consult with us before making a decision

IMPORTANT INFORMATION & DISCLAIMER
These credit repair tips and strategies are provided for educational and informational purposes only. They are intended to guide clients towards a better understanding of how to achieve and maintain a healthy credit score. Credit repair and financial coaching require time and consistency. Implementing stronger financial habits and making informed decisions usually result in better financial opportunities.

Financial Overcomers does not guarantee any specific increases in credit score, loan approvals, financing terms, interest rates, or financial outcomes. Credit repair and financial coaching results vary based on each client's unique credit history, financial circumstances, information reported by creditors and consumer reporting agencies, and other individual factors. Credit reporting agencies, creditors, lenders, and other third parties maintain their own policies, procedures, and decision-making processes.