Who doesn’t want Good Credit?
After all, it translates to a lot of financial advantages – which includes having access to great leverage.
Yet, Americans everywhere are struggling to understand and comprehend the Credit Game.
Is there a solution to this epidemic? And, how can individuals who have no prior experience in fixing Credit manage to clean up their reports and boost their scores?
Introducing the Credit Triangle:
I had initially pioneered this tool for my clients – especially when it comes to helping them create a solid financial plan. The Credit Triangle consists of 3 different stages. All which compliment each other to provide a superior outcome when it comes to financial goals.
How does it work?
Let’s review each stage thoroughly to understand the power of how effective the Credit Triangle is.
Stage 1: Credit Audit
When it comes to establishing good credit, the very first step is to know where you stand. Yes, it sounds obvious but it goes a bit deeper than that.
What does auditing consist of? And, how can you make sure that you are doing it right?
A) Make sure that you obtain your credit reports from a third-party, aside from the 3 Major Credit Bureaus themselves. Why?
The Credit Bureaus use this thing called the “binding arbitration agreement” which can immediately put you at a disadvantage prior to you even starting on your journey to fixing your credit.
Simply put, whenever you obtain your credit reports from these 3 bureaus, they tie you into an agreement which protects them from potential litigation. You want to avoid that – since you want to leave room for possible lawsuits, in case of non-compliance (which happens frequently).
Head over to Annual Credit Report to get access to all 3 of your Credit Reports for free. Or, alternatively, you can also go to Credit Check Total and sign up for their trial, which lasts for 14 days.
B) Note down all the information related to your Credit Reports.
At this stage, you don’t want to miss out anything important. Be sure to check for accuracy in terms of your personal information appearing on all 3 reports.
Be sure that all public records are stating information correctly, and if they are not, be sure to include them on the dispute list.
Finally, you want to write down all accounts that are showing up, regardless of they be positive or negative. The reason why you want to do this is that you want to make sure that the information is printed on those reports are factually displaying your current credit conditions.
Stage 2: Execution Plan
Now comes the time to execute an effective plan. Before anything, you want to make sure that everything that you will be doing from this point forward is accurately laid out.
Here’s how you do it:
A) Get organized properly to succeed
The first thing you’ll need to do is to obtain 3 binders with pockets in them. The first pocket will be for letters that are sent out and the second will be for outgoing mail.
Also, you want to make sure that you use Google Calendar to keep track of your efforts. It’s important to create a reminder on your Calendar from the date in which you send out the letters. This way, 30 days from the commencement of you sending out the letters, you’ll automatically be notified to follow up on the progress.
Last but not least, be sure to purchase enough envelopes. You don’t want to keep going back and forth to seal your letters.
More importantly, always send out your letters using certified mail with return receipts requested. By doing so, you will have documented evidence of your disputes which can tremendously help you.
B) Create a Terms of Dispute Document
Terms of dispute document will give you clarity. It will act as your action plan and you may refer to it whenever you aren’t sure of what steps to take next.
Why is this important?
Often, individuals who start repairing their own credit start to doubt themselves and their ability to pursue the objective until the end. You don’t to end up in the same situation.
Having a documented set of conditions and terms will help you organize your path towards victory. This includes noting down what the worse case scenario can possibly mean for you. Be sure to state exactly how you will execute certain things and what measures you will take to make sure that they are done right.
C) Don’t dispute more than 10 items at a time
Because the more you dispute at once, the higher the chances of them coming back verified. Yes, it’s true that some people have succeeded in getting 20+ items removed at once, but it’s not always the case.
Having a set of 10 or less item per dispute will allow you to work with control and ease. This will make it easier for the Credit Bureaus to coordinate with you based on a controlled manner. The reason why this is important is that you don’t want to overwhelm yourself.
Sure, it may take longer to clean up the reports and bring your scores back up, but the outcome is all the same. Would you rather be stressed trying to get everything done at once? Or, would you rather have control over a set of items that you can masterfully remove without the stress?
Stage 3: Leveraging and Staging
By now, you should have disputed your negative items successfully and are on your way to building stellar financial confidence.
Once you’ve obtained a positive outcome and responses from all 3 Credit Bureaus, you want to start leveraging your Credit Profile by applying for new accounts. This will help increase your scores and help you build a more bankable identification.
To do this, follow these steps…
A) Apply for New Accounts and keep less than 3 inquiries per every 6 months
If you’re applying for new credit, you can pretty much bet on the fact that it will give you an immediate inquiry. It does not matter whether it’s a store card or a tier 1 bank, inquiries are inevitable.
Here’s the thing:
The more inquiries you have on file, the most desperate you may seem in the eyes of the Creditors and Lenders.
B) Increase your Chances of Approval for New Accounts
When receiving the correspondence from the 3 Bureaus, you may come across mixed reactions. This includes having certain items come back verified.
Prior to approaching new creditors to build more Credit, be sure that you have had success in your disputes. If you aren’t sure, just keep a lookout for the accounts that are most likely to hurt your scores the most. Generally, you want to avoid applying when certain negative items are still in your reports. This will help you avoid going back to the drawing board in order to restart your whole plan.
C) Go back to your Original Good-Standing Creditors and Negotiate
If you’ve already established prior Credit, there is no better time than the present to ask for an increase in the Credit Limit that you currently have.
You can do this by calling the toll-free customer service line of the Creditor that you are with and asking them to verify if they can have a look at if there are any possibilities to extend further Credit to you.
An important part of this negotiation rule is to make sure that they don’t do any hard pulls on your Credit. Sometimes, it’s something that you cannot avoid. However, often, the Creditors are willing to work with you and simply extend your Credit based on the history and loyalty of the account that you hold.
The interest rates may also be negotiated if need be. You simply need to ask them if they have any promotional offers where you are able to swap Credit Cards or Accounts for a lower interest option. This can save you a ton of money, depending on the size of your Accounts and how much you pay every month.
Using the Credit Triangle, you’re able to reach your financial goals faster. This is true, especially when it comes to building a stronger personal credit profile.
The most important thing is to make sure that you are following each step accurately and effectively.
And, if you’re in need to go completely “hands-free” and want us to personally handle all the complexities, please contact us.