The Five Biggest Myths Regarding Your Credit Score

Presented byVP of Financial

Education Services

:

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Credit Score Myth #1:

You need to carry a credit card balance to have a higher credit scores.

Credit Score Myth #2 Paying collection accounts will increase my credit score

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Credit Score Myth #3: If you handle your finances and pay your bills on time, your credit scores will take care of themselves.

Credit Score Myth #4 If I have negative items on my credit report and they’re accurate, then I have to put my head in the sand and just hope it falls off!

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Credit Score Myth #5: You should close credit card accounts that you are not using!

Credit Score Myth #6: All credit scores are pretty much the same.

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Credit Score Myth #7: You can check your credit score all you want and won’t hurt your credit score.

Credit Score Myth #8: After filing a bankruptcy or having my home foreclosed on, the credit bureaus automatically remove these items after a certain amount of time.

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• Today your credit score is like a vital sign, it’s being monitored at all times. Today your credit score is like a vital sign, it’s being monitored at all times. • About 25% of the population has a 599 credit score or below (about 43 About 25% of the population has a 599 credit score or below (about 43

million people)million people)• Over the course of your lifetime less than excellent credit could cost you Over the course of your lifetime less than excellent credit could cost you

from $200,000 up to 1 million dollars in interest and additional fees.from $200,000 up to 1 million dollars in interest and additional fees.

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•About 43% of employers use credit score as a factor in determining who they About 43% of employers use credit score as a factor in determining who they will hire.will hire.•About 80% of all credit reports have errors on them causing lower credit About 80% of all credit reports have errors on them causing lower credit scoresscores•About 83 million people don’t even know what their credit score is, or what is About 83 million people don’t even know what their credit score is, or what is currently on their credit report.currently on their credit report.

www.United-Credit.orgwww.United-Credit.org A Credit Education Service Company A Credit Education Service Company

10year track record10year track record““A” Rating with the BBBA” Rating with the BBBServed over 150,000 clients Served over 150,000 clients Removed almost 680,000 derogatory items from Removed almost 680,000 derogatory items from

people’s credit reportspeople’s credit reportsRemoved over 65,000 public recordsRemoved over 65,000 public recordsSatisfaction money back guaranteeSatisfaction money back guarantee

United Credit Home Page Screen ShotUnited Credit Home Page Screen Shot

Documentation:Documentation:

After having our bankruptcy removed, we After having our bankruptcy removed, we were able to purchase a home with a low, were able to purchase a home with a low, fixed interest rate, which saved us almost fixed interest rate, which saved us almost

$1,000 per month.”$1,000 per month.”

~Johnny and Sandra Moler~Johnny and Sandra Moler

Documentation:Documentation:““I had a short sale removed from my I had a short sale removed from my

credit report in the first 30 days.”credit report in the first 30 days.”

~Bill Shook~Bill Shook

Documentation:Documentation:““In my first 30 days I had a tax lien removed from my credit report."In my first 30 days I had a tax lien removed from my credit report."

~Lilly Ortiz~Lilly Ortiz

“ “ I had 14 derogatory accounts removed from my credit file, I had 14 derogatory accounts removed from my credit file, including 3 repossessions and my credit score jumped up including 3 repossessions and my credit score jumped up significantly, allowing me to purchase a BMW 740i and qualify to significantly, allowing me to purchase a BMW 740i and qualify to buy a home for my family!” buy a home for my family!” ~Lenny Downie~Lenny Downie

What Would It Be Worth What Would It Be Worth To Have Excellent Credit?To Have Excellent Credit?

Monthly Option = $199Monthly Option = $199($160 activation fee + $39 first month)($160 activation fee + $39 first month)

$39 per month thereafter - No Contract / Keep the service $39 per month thereafter - No Contract / Keep the service until you reach your desired credit scoreuntil you reach your desired credit score

One-Time Payment Option = $499One-Time Payment Option = $499Approximately One Year of ServiceApproximately One Year of Service

Credit TipsCredit Tips

Boost Your Credit Score

8 tips to improve and protect your credit score.The best way to improve your credit score?

Follow these simple tips and watch your credit score go higher!

Tip #1 – Pay your parking tickets.

Especially in the city of Los Angeles, they will take your unpaid parking tickets and send them to collections. Collections, no matter how small, can crush your credit score.

Tip #2 – Do NOT pay collections and expect your credit score to go higher.

The credit scoring model only looks at two things on a collection; the most recent activity date and the status code. It doesn’t look at the balance amount. For this reason, a collection for $5 and a collection for $5,000,000 have the same negative impact on your score. Paying off a collection can only hurt you because it updates the activity date and the $0 balance doesn’t help you.

Tip #3 – Opt-out of Credit Bureau marketing lists. You may not know this, but you were opted-in at birth to the Credit Bureaus marketing lists. You have to opt-out or they can sell your personal information for profit. The information they sell includes your SSN, DOB, debt amounts, credit scores, age, address and more… Truly sickening.

Go to www.OptOutPreScreen.com to electronically opt-out for 5 years. Then, print the form and mail it in to opt-out permanently.

Tip #4 – Get a secured credit card.

Everyone should do this. Just make sure you ask the issuing bank to whom they report the account. If they don’t report to all 3 credit bureaus, then don’t get the card. The whole point is to improve and protect your credit score and the only way to do that is if they report to all 3 bureaus.

Tip #5 – A short sale is far better than a foreclosure for your credit.

With a short sale, you have control over the end-date of the event. With a foreclosure, it just depends on when the bank gets around to it. They could take years to process it, crushing your credit score every month along the way. Also, the short sale looks much better on your credit profile. A foreclosure is like giving a lender “the bird”. You pretty much are saying, ‘it’s your house, you deal with it’. In a short sale, you are saying, ‘I can’t pay, but I want to help you get as much money back as possible.’ That will help you get back in a home more quickly down the road.

Tip #6 – Never co-sign anything unless you MUST.

There is absolutely no point in co-signing for a car, mortgage or student loan unless you have absolutely no other option. All it does is give the Bank another person to chase down in the event you can’t pay. It doesn’t help you one bit, but could end up biting you in the behind.

Tip #7 – Authorized user accounts don’t really work any more.

This used to be a quick way to piggy-back the credit score of a family member and get a good credit score very easily. It doesn’t work as often these days and is being phased out as a “trick” to helping your credit score. There are also lenders that will disqualify you right away if they see any of your accounts are auth-user accounts.

Tip #8 – Pay your credit card bills before the statement ending date.

Most people think the key to building a good credit score is to get a credit card, use it during the month, then pay it off when the bill comes in. They did a good job of brain-washing us on this. Unfortunately, you are falling right into their trap if you do this. By the time you get the bill, the credit card company has already reported it to the credit bureaus. They report each month the balances of your accounts as of the statement ending dates. So, if you pay the account off each month, your credit score will never know it because the credit card company is reporting the balance to the credit bureaus right before you pay it off each month! All you have to do is pay the balance prior to that statement ending date and you will get the credit you deserve.

Vice PresidentVice PresidentDarbe NokesDarbe Nokes

Cell phone (310) 924-5182Regional Office: 5023 N. Parkway Calabasas

Calabasas, Ca 91302 

darbe@darbenokes.com

www.darbenokes.com

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