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LEARN HOW TO RUN OR GROW YOUR CREDIT REPAIR BUSINESS

DIY Credit Repair: How to Repair Your Own Credit Score FAST

By: Daniel Rosen April 04, 2023

Do you want to learn to boost credit scores in five minutes? 

Well, on this week's Podcast, I'm gonna show you exactly how to do it!

Credit Repair isn't rocket science. All you have to do is learn your rights and take action! It's a simple process that removes inaccurate information from Credit Reports and increases Credit Scores.

You can do it yourself or hire a Credit Repair professional. Either way, the basics remain the same. Like fixing your car or doing your Taxes, investing in a pro can save you a lot of time and money, but learning how to do it yourself is cost-effective, and you acquire a valuable new skillset! 

In fact, most successful Credit Repair professionals begin their journey by boosting their Scores. They decide to help their friends and family do the same. Then they turn their skills into a profitable new business. 

Considering 79% of Credit Reports contain errors and 40% of Americans have scores below 700, those skills are needed now more than ever!

So, whether you do it yourself or hire a professional, the important thing is you take action toward a better Credit Score and a brighter financial future. 

HOW THIS RELATES TO US

If you choose to Repair your Credit yourself, you'll need to get comfortable reviewing Credit Reports, identifying errors, and mailing dispute letters to the Credit Bureaus. And depending on the circumstances, you may need to file complaints with regulators or enlist the help of an attorney. 

If you hire a Credit Repair Professional, they can handle the entire process for you, potentially achieving better results faster. But do your research and pick a reputable company. Stay away from scams promising quick fixes. 

Even if you don't plan on buying a house, getting a loan, or building a Credit Repair empire any time soon, you should still be working to improve your Credit Score! A higher score means it's cheaper to borrow money. You have more purchasing power and more negotiating power with lenders.

Whenever you take out a line of credit, your repayment interest almost always depends on your Credit Score. The better your score, the lower your interest rates and the more money you save. 

For example, if you apply for a mortgage and have good credit, you generally get an interest rate of 1.5% LESS than somebody with bad credit. This means on a 30-year mortgage, you save TENS of THOUSANDS.

So, now that you know the benefits of having a good Credit Score, let's talk about Credit Score GOALS and how to achieve them! If I move fast, don't worry, I put all this info in a guidebook that you can download for FREE at 
7 Simple Things to Increase Your Credit Score.

THE THING TO REMEMBER

Credit Scoring is a system that lenders, creditors, and other organizations use to evaluate your creditworthiness. The most commonly used scoring model is the Fair Isaac (FICO) score, which ranges from 300 to 850. 

The higher your score, the better your credit standing. Here's a breakdown of the different Credit Score ranges and how they're graded:

300 - 579 is considered POOR 
580 - 669 is FAIR
670 - 739 is GOOD
740 - 799 is VERY GOOD
800 - 850 is considered EXCEPTIONAL

FICO scores are calculated using five categories, each weighing differently on your score. Payment History makes up 35% of your Credit Score, Credit Utilization or Amounts Owed is 30%, Length of Credit History is 15%, New Credit is 10%, and Credit Mix makes up 10% of your Score.

The three main Credit Bureaus, Equifax, Experian, and TransUnion, use the FICO model to build your Credit Scores. Unfortunately, they sometimes have different information, which results in three different Scores. This is also why we must dispute each error individually with the three Bureaus.

Now, you might be wondering, "Do I need a perfect 850 Credit Score?" 

Well, according to recent FICO statistics, only about 1.6% of the 232 million U.S. consumers with a Credit Score have a perfect 850. It takes years of hard work to reach it and extreme discipline to maintain it.

But the truth is you don't need a perfect 850 Credit Score to achieve financial success! 

According to Ethan Dornhelm, VP of FICO Scores & Predictive Analytics, "To lenders, a consumer with a score in the 800s is a sparkling applicant."

So, from the standpoint of qualifying for credit, it doesn't matter whether you have an 850 or a score just below it. 

WHY THIS IS IMPORTANT

FICO scoring data shows that a 760 Credit Score is the minimum needed to be offered the best interest rates from lenders. Some experts say a Credit Score of 780 is the target to hit to get the best available rates. 

But whether it's 760, 780, or 800, there's one Credit Score fact everyone agrees with…the higher, the better! So no matter your Credit Score, any opportunity you have to boost it, you boost it!

WHAT YOU NEED TO KNOW

You can do a ton of Simple Things to raise your Credit Score. 

First, Review Your Credit Reports and Correct all the obvious Errors. 79% of Credit Reports contain errors. So, carefully review your reports, look for inaccuracies, and dispute them immediately.

If you still need access to your Credit Reports, you can request free copies from each of the Credit Bureaus at
AnnualCreditReport.com.

Start by confirming that all your personal information is up-to-date and accurate. It's unbelievable how often this is the cause of scoring issues. 

Note any suspicious items that don't belong to you or duplicate accounts. Accidental duplicate accounts are a common problem for those with student loans or accounts in collections, but they also could be a sign of fraud. Investigate their cause and contact the Bureaus immediately.

Review the details of any negative items on your Credit Report, including Late Payments, Charge-Offs, Collections, and accounts listed as "Settled," "Paid Derogatory," or "Paid Charge-Off." Check them for errors. 

For example, most negative items can only appear on Credit Reports for a limited time, typically 7 to 10 years. I call it the Credit Time Clock. If an item exceeds its time limit and doesn't fall off automatically, demand its removal.

Another way to Boost your Credit Score is to Get your Credit Utilization ratio below 30%. 

Credit Utilization is the second most important factor in determining your Credit Score, and it's the easiest to address. 

Credit Utilization refers to the amount of credit you're using compared to the total amount of credit available to you. The most common number associated with Credit Utilization is 30%. 

For example, if you have a credit card with a $10,000 limit, you should only use up to $3,000 at any given time, even if you pay your account off in full each month. 

If your balances exceed 30% of your credit limit, you can pay it down or request that your creditors raise your available credit limit. Do what makes the most sense for you.

Also, Pay Attention to the Length of your Credit History!

The Length of your Credit History is 15% of your Credit Score. Closing old accounts can shorten your history, hurting your score. So, keep old accounts open and use them occasionally to maintain your positive record. 

If you hate credit cards as I do and don't want to use them anymore, cut them up or hide them away, but keep the account open! Don't let them do more damage by getting rid of them. 

Last, if you want to Improve your Score, Apply for Credit Sparingly.

Every time you apply for new lines of credit, your report gets checked, which can harm your score. If lenders see too many applications on your report, they might see it as a sign that you're a high-risk borrower. On top of that, opening new lines of credit and accounts less than a year old can actually hurt your score! 

New Credit accounts make up 10% of your Credit Score, so only apply for new lines of credit when necessary.

There's so much more to say and more ways to boost Credit Scores, but I'm already over the 5-minute mark, and you can check out the rest when you download my Free guidebook at 7 Simple Things to Increase Your Credit Score. 

MY FINAL POINT

Credit Repair isn't rocket science. You can do it yourself or hire a professional, and most professionals started by doing it themselves. 

But either way, all you really need to boost your Credit Score is to learn your rights and take action!

I'LL END BY SAYING...

If you still need a Credit Repair Cloud account, check it out. It's the software that most Credit Repair businesses in America run on. Sign up here for a Free Trial!

And if you'd like to change lives and grow your very own Credit Repair business, check out our Credit Hero Challenge!

Challenge-Stack-Mockup-Final

It's an amazing program, and we've got another challenge starting in a few days, so grab your spot right now at CreditHeroChallenge.com!

So take care, Credit Hero!

Keep Changing Lives!

Be sure to subscribe on your favorite platform below!

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Topics: Podcast

Transcript

Hey, Credit Heroes. Do you want to learn how to boost your credit score in five minutes? Well, today I'm going to show you exactly how to do it. So you better stick around. 

 

So the big question is this, how can we take our passion for helping people with their credit and turn it into a successful business without taking loans without spending a fortune by bootstrapping it from nothing? So we can help the most people and still become highly profitable? That is the question, and this podcast will give you the answer. My name is Daniel Rosen, and welcome to Credit Repair Business Secrets.

 

If this is your first time listening to my podcast every week, I give credit repair tips and advice on bootstrapping your business from nothing. So be sure to click subscribe now and get ready to start changing lives. Okay, let's get into this credit repair isn't rocket science. All you have to do is learn your rights and take action. It's a simple process that removes inaccurate information from credit reports and increases your credit scores, you can do it yourself or you can hire a credit repair Pro. Either way, the basics remain the same. It's like fixing your car or doing your taxes. Investing in a Pro can save you a lot of time and money. But learning how to do it yourself is cost-effective, and you acquire a valuable new skill set. In fact, most successful credit repair professionals began their journey by boosting their own scores, then they decided to help their friends and family do the same, and then they turn their skills into a profitable new business. Considering that 79% of credit reports contain errors, and 40% of Americans have scores below 700. These skills are needed more now than ever. 

 

So whether you do it yourself or you hire a professional, the important thing is that you take action towards a better credit score and a brighter financial future. Here's how this relates to us. If you choose to repair your credit yourself, you'll need to get comfortable reviewing credit reports identifying errors, and mailing dispute letters to the credit bureaus. And depending on your circumstances, you may need to file complaints with regulators or enlist the help of an attorney. If you hire a credit repair professional, they can handle the entire process for you potentially achieving better results faster. But do your research and pick a reputable company and stay away from scams promising quick fixes. Even if you don't plan on buying a house getting a loan or building a credit repair Empire anytime soon, you should be working to improve your credit score. Now, a higher score means it's cheaper to borrow money, and you have more purchasing power and more negotiating power with lenders. Whenever you take out a line of credit. Your repayment of interest almost always depends on your credit score, the better your score, the lower your interest rates, and the more money you save. For example, if you apply for a mortgage and you have good credit, you generally get an interest rate. That's one and a half percent less than somebody with bad credit. This means that on a 30-year mortgage, you'll save 10s of 1000s of dollars. 

 

So now that you know the benefits of having a good credit score, let's talk about credit score goals and how to achieve them. If I move fast, don't worry, I'm going to put all this in a guidebook that you could download for free at CreditRepairCloud.com/7-Simple-Things-to-Increase-Your-Credit-Score, and there are dashes between each of those words. Here's the thing to remember, credit scoring is a system that lenders creditors and other organizations use to evaluate your creditworthiness. The most commonly used scoring model is the Fair Isaac FICO score, which ranges from 300 to 850. The higher your score, the better your credit rating. Here's a breakdown of the different credit score ranges and how they're graded. 300 to 579 is considered poor 580 to 669 is fair 670 to 739 is good 740 to 799 is very good, and 800 to 850 is considered exceptional credit scores are calculated using five categories, each weighing differently on your score. Payment History makes up 35% of your credit score. Credit utilization or amounts owed is 30% length of credit history is 15% new credit is 10% and credit mix makes up 10% of your score the three main credit bureaus Equifax, Experian, and TransUnion use the FICO model to build your credit scores. Unfortunately, they sometimes have different information which results in three different scores. This is also why we must dispute each error individually with each of the three bureaus. Now you might be wondering, do I need a perfect 850 credit score? According to FICO statistics, out of the 232 million US customers with a credit score, only 1.6 of them have a perfect 850 score. It takes years of hard work to reach that score and extreme discipline to maintain it. But the truth is, you don't need a perfect 850 score to achieve financial success. According to Ethan Dornhelm, the VP of FICO scores and predictive analytics to lenders. A consumer with a score in the eight hundred is a sparkling applicant. So from the standpoint of qualifying for credit, it doesn't matter whether you have an 850 score or a score just below it. 

 

Here's why this is important. FICO scoring data shows that a 760 credit score is the minimum needed to be offered the best interest rates from lenders and some experts say a credit score of 780 is the target to hit to get the very best available rates. But whether it's a 760 and 780, or an 800, there is one credit score fact that everyone agrees on. The higher the score, the better. So no matter what your credit score is any opportunity you have to boost it, you're better boosted. 

 

Here's what you need to know, you can do a tonne of very simple things to raise your credit score. First, you want to review your credit reports from all three bureaus, and you want to correct all the obvious errors. Now 79% of credit reports have errors. So Carefully review your reports, look for inaccuracies, and dispute them immediately. If you need access to your credit reports, you can request free copies from each of the credit bureaus at annual credit report.com starting by confirming that all your personal information is up to date and accurate. It's unbelievable how often this is the case of scoring issues. Note any suspicious items that don't belong to you or duplicate accounts. Accidental duplicate accounts are a very common problem for those with student loans or accounts in collections, but they could also be a sign of fraud. To investigate their cause, contact the Bureau immediately to review the details of any negative items on your credit reports, including late payments, charge offs, collections, and accounts listed as settled, paid, derogatory, or paid charge off, and check them for errors. For example, most negative items can only appear on a credit report for a limited time, typically seven to 10 years. I call it that credit time clock. If an item exceeds its time limit and hasn't fallen off automatically demand its removal. Another way to boost your credit score fast is to get your credit utilization ratio below 30% credit utilization is the second most important factor in determining your credit score and it's the easiest to address. Credit utilization means the amount of credit you're using compared to the total amount of credit available to you the most common number associated with credit utilization is 30%. For example, if you have a credit card with a $10,000 limit, you should only use up to $3,000 at any given time, even if you pay your account off in full each month. If your balances exceed 30% of your credit limit, you can pay it down or you can request that your creditors raise your available credit limit just do what makes the most sense for you. Also, pay attention to the length of your credit history, the length of your credit history makes up 15% of your credit score. So closing old accounts can shorten your history, which hurts your score. So keep old accounts open and use them occasionally to maintain your positive record. If you hate credit cards as I do, and you don't want to use them anymore, cut them up or hide them away. But be sure to keep the account open. Just don't let them do any more damage by getting rid of them. 

 

And last, if you want to improve your credit score, apply for credit sparingly. Every time you apply for new lines of credit your credit report gets checked, which can harm your score. And if lenders see too many applications on your report, they might see that as a sign that you're a high risk borrower and on top of that opening new lines of credit and accounts less than a year old can actually hurt your credit score new credit accounts make up 10% of your credit score. So only apply for new lines of credit when absolutely necessary. There's so much more to say and so many more ways to boost your credit scores. But I'm already over the five-minute mark. And you can check out the rest when you download my free guidebook at CreditRepairCloud.com/7-Simple-Things-to-Increase-Your-Credit-Score, and be sure to put those dashes in between just like it says below. And to make it easier for you. I'm gonna put the link over there in the show notes.

 

Here's my final point. As I said earlier, credit repair isn't rocket science, you can do it for yourself, you can hire a professional, and most professionals started by doing it for themselves. But either way, all you really need to boost your credit score is to learn your rights and take action. 

 

And just a reminder, this podcast is brought to you by Credit Hero Score. Credit Hero Score is the only credit monitoring service that integrates directly with the credit repair cloud to get instant access to your credit reports and scores by signing up for a seven-day trial for only $1. Sign up right now at creditheroscore.com. 

 

And now for my favorite part of the episode. Every week I feature one of our credit heroes inside our credit repair cloud Facebook community so that you can see firsthand what real people are doing as they run and grow their businesses. And today's spotlight is on Maureen Wiley. Maureen recently posted a picture in our community rocking her credit hero t-shirt. And she explained how proud she was to be a credit hero. She said that when she decided to take the credit hero challenge in August of 2022. She didn't know it would feel so great to change lives. She said she loves helping people and having this platform to help them in ways that will affect future generations. And she added that this is a new kind of drive for me. It's not easy, but it's really worth it. Put your foot on the gas and drive as far as you can. And don't stop. Isn't she amazing? I know exactly how she feels. When you start making a living while changing people's lives. You don't want to do anything else with your time. So keep up the great work Maureen, you are a true credit hero. And I'll end by saying if you need a credit repair Cloud account, check it out. It's the software that most credit repair businesses in America run on. Just sign up for a 30-day free trial at creditrepaircloud.com/freetrial. And if you'd like to change lives and grow your very own credit repair business, check out our credit hero challenge. It's a live experience that it's helped tonnes of credit heroes to get certified in disputing and to gain confidence as they run their credit repair business on a solid foundation. So they can change a whole lot of lives and make a great living in the process. We're starting the next challenge very soon. So you want to join before the door is closed, or you're gonna have a long wait until the next one. So sign up right now at creditherochallenge.com. And if you're finding value in the things that I share on this podcast, click below to subscribe and follow. Also, give me a five-star review. Give me a thumbs up or share the show and help me to change more lives. If you'd like to read the show notes that are posted on my blog. If you have a question or a comment, drop it down below because I read each and every one of them. I'd love to hear from you. And I'll respond as fast as I can. If you want to learn more ways to boost credit scores, check out my video-proven strategy to remove late payments from credit reports. So take care credit hero and keep changing lives. 

 

Hey everybody, it's Daniel again. And really quick, I'd like to invite you to join what I believe is the best thing we have ever created inside the credit repair cloud community. And it is a challenge that we call the credit hero challenge. If you're just planning out your business, or you're just getting it started, and you dream of having a successful business of your own. So you can quit your nine-to-five and fire your boss and have financial freedom or so you can add another revenue stream to your existing business. If that's your dream, you need to get into this challenge. We created this challenge to help you to create and launch your very own credit repair business to build a proper foundation for a really successful business. This challenge is going to help you to understand the strategy, the tactics, and all the things you need to be successful at credit repair. It really is the greatest thing we have ever built and it will change your life. So I recommend you do it right now. Stop everything pause this audio So go online and go to credit hero challenge.com That's creditherochallenge.com and join the next challenge. And there's a challenge that starting in just a few days, so go get started right now at creditherochallenge.com

 

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