Tips for Building Business and Personal Credit User Guide
First – Suppress LexisNexis – Freeze LexisNexis, SageStream, Innovis
(This is the start to remove Bankruptcy as well) Get a letter from the Bankruptcy county clerk to be sent to LexisNexis to remove Bankruptcy.
Credit Unions – Navy Federal, PenFed CU https://www.penfed.org/,
Tradelines
Credit Steroid Month
1. Open a credit line with Myjewelersclub
2. Open a credit line with New Coast Direct
3. Open a credit line with Ox Publishing
4. Rent Reporters (Back-Dates up to 24 Months)
5. Credit Strong (Magnum)
6. Self Lender
7. Secured Card with your Credit Union (No inquiry)
8 Become an Authorized User on a card with 7+ years to average out the new accounts.
Credit Software – CreditVersio
By Law, they have 45 Business Days to respond to a Dispute.
Google your state secretary website and search to see if the debt collector/collection agency is Licensed/Bonded in your state. More info in 2nd step link below.
SECOND STEP:
DEBT VALIDATION PROCESS (Medical bills is a Hippa Debt Validation)
https://www.creditwarriors.org/debt-validation-process/
WHAT LETTER DO I USE
https://www.creditwarriors.org/dispute-letter-use/
SECURITY FREEZE
JUDGEMENTS/ EVICTIONS/BANKRUPTCY/TAX LIEN? PUBLIC RECORDS?
https://www.creditwarriors.org/security-freeze-contact-inf…/
HARD INQUIRIES?
https://www.creditwarriors.org/multiple-inquiries-dispute-…/
609 Letters
For CHARGE OFFS? COLLECTIONS? REPOs? NEGATIVE CLOSED ACCOUNTS? STUDENT LOANS? CHILD SUPPORT? BANKRUPTCY?
https://www.creditwarriors.org/609-dispute-letter/
PAY FOR DELETE
https://www.creditwarriors.org/pay-delete-process/
ZERO BALANCE LETTER
Here is a faster way to get that credit score increase after you pay off each credit card. It is called a Zero Balance letter.
A Zero Balance letter is a letter that you receive from the CC company saying that as of “x” date. your account balance is “zero”
Once you have confirmed that the balance is paid to zero you call the credit card company and tell them you are applying for a home loan and need a “Zero Balance” letter.
Ask them to fax it to you so that you receive it faster. Mail the letter to each of the 3 bureaus. Your records will be updated in about 2 weeks.
CREDIT STRONG
Works just like self-Lender but A Better Way To Build Credit
Start building credit today. Plans start as low as $15 a month
No hard inquiry. They do not make their decision based on consumer credit scores. This installment loan will report to all three major credit bureaus (Experian, Equifax, TransUnion).
1.Build Credit
Payments reported to all 3 major credit bureaus
2.No Upfront Deposit
Pay as little as $8.95 to get started today
3.Free FICO® Score Score
Track your progress over time
4.Build A Nest Egg
Part of every payment grows your savings
5.No Commitment
Cancel any time at no cost
Here are a few Tradelines that are cost effective and will help to boost your credit scores. Be sure to check with each company to know their guidelines in regard to bankruptcy. Some of these companies may do a hard pull which will result in a hard inquiry.
1) Merchant Card – offers a $1,500 line of credit that reports to
Equifax and TransUnion only.
https://www.huttonchase.com/join7/?aff=XX-33KQRX
2) Merchant Card – offers a $2,500 line of credit that reports to Equifax only.
https://www.oxpublishing.com/credit/p7/?aff=XX-R9V2C2
3) Online Jewelry store – offers a $5,000 line of credit that reports to Equifax, TransUnion and Experian
https://tinyurl.com/CreditWarriorsCard
4) Online merchant account- offers a $5,000 Unsecured Revolving Line of Credit
Joint accounts are available
reports to TransUnion and Equifax. http://bit.ly/2Pnkstg_CreditWarriors
Secured credit card
5) Recommended Secured Card. Build credit fast with a guaranteed approval. Minimum deposit is 200. This card will report 6x per month. Reports to TransUnion, Equifax, and Experian.
https://www.creditbuildercard.com/creditwarriors.html
The Correct Way to Pay Your CC Bill
🚨🚨CREDIT CARD UTILIZATION 🚨🚨 Read entire post please. SAVE the post
This is the correct way to pay your bill to gain maximum Fico score:
Capital One
Credit Limit $500
Due Date 5th (In RED)
Statement Date 8th ( In BLUE)
Balance $77.02
Minimum Payment $15.00
Credit Limit – Maximum amount of credit on your card. NEVER go over this amount. it’s best to not even max your card. It’s best to stay under Half your limit if possible.
Due Date- When your Balance or Minimum Payment is Due. This date is used to calculate interest (APR).
Statement Date (Closing Date) – This is your last day of the billing cycle. This is the date your Utilization is reported to the Credit Bureaus. This is when your utilization should be less than 10%, between 1%-5% for optimum Fico. The less the better but NEVER 0%. YOUR SCORE MAY DROP! You want it to report some type of usage.
Balance- This is the amount you need to pay in FULL by the due date so that NO INTEREST is applied. To leave room for error, Pay this balance in full at least 3 days before the due date.
Minimum Payment- Lowest amount of money that you are required to pay on your due date each month. This is NEVER recommended.
Back to the example below.
On April 2nd (3 days before the due date of April 5th), Pay the balance in Full of $77.02. Paying any amount less than this will accrue interest which means you will end up paying more on your next bill.
On April 6th or the 7th (after the due date but before the statement date), make a small purchase on your card for utilization purposes. Why? This is what will be reported as usage to the Credit Bureau. Using this method allows for 2 things: No Interest and low utilization reported to the Credit Bureaus.
Let’s break it down one more time:
Due date April 5th
Make payment in full of $77.02 on April 2nd (3 days before the due date).
On April 7th, make a $10 purchase for usage/utilization reporting. Rinse and repeat next month.
How do you calculate utilization?
Let us say your credit card balance is $10 and your credit limit is $500. You would divide $10 by $500 then multiply by 100- 2%. That is what my utilization will be reported as to the credit bureaus- 2%.
DO NOT use an APP to pull due date and statement date – Use an actual credit card statement. Don’t guess on your dates either. This is the easiest breakdown I can give you. Works on ANY credit card- secured, unsecured, whatever.
🎯🎯It’s important to monitor your credit so that you can monitor your cards and monitor your Utilization. This works on the majority of Lenders/ there may be a few that report on a different date other than the closing date which is why you need to Monitor your credit.
🚨Please Remember one thing about credit card utilization rate: your usage depends on the balance that your card’s issuer reports to the credit bureaus, not how much you spend each month. Do not get these two twisted
ALWAYS either Hand Write ALL your letters in BLUE ink or type the letter out & handwrite all the pertinent info such as Name, address, account number, account name, credit bureau info, collection agency name, etc. in BLUE INK. Why? The Credit Bureaus use the eOscar system- which is an automatic scanner that they pass your dispute letters through. If it seems as if the letter reads as a template or by a credit repair company, eOscar will automatically respond with a “your dispute has been verified” letter.
But when you use Blue Ink & personalize your letters, you force an actual person to read your letter and handle your dispute and try to respond within 30 days. That is why we are so big on BLUE INK when sending ALL letters Certified. 🚨🚨Letters DO NOT need to be notarized, or on colored paper, or highlighted, or anything- Regular Notebook paper and a blue pen! It’s Simple.
609 Letter
A 609 letter is a letter used to dispute errors or other inaccuracies off your credit report. Also, can be used to remove collections, derogatory accounts, Closed accounts, Charged Off Accounts, hard inquiries, and late payments. Removing these negative items will help to raise your credit score.
Section (609) of the Fair Credit Reporting Act is a Consumers Disclosure section which is to provide for the protection of consumers against false and erroneous reporting. This section of the FCRA places the burden upon the Credit Bureaus and the Creditor to prove an account is yours. To positively prove an account is yours, the creditor must provide the Credit Bureau a copy of the original creditor’s documentation (whatever you filled out and signed upon opening the account with the reporting creditor).
The FCRA was enacted by Congress to protect consumers from unverifiable accounts and information from being reported on your credit report. Example: If you filed a suit against someone and you showed up in court with no proof against that person, what would the judge do – throw the case out of court! Without documentation, the Credit Bureaus have NO right to list your personal financial information on your credit report. They are required by law to verify and validate every single account on your report.
There are FIVE 609 letters. These letters are sent to the Credit Bureaus. You start with 609 letter #1…. You send the letter Certified mail, with a copy of your SS card and ID\DL… You can handwrite the entire letter or type it and only hand write the Name of the Account and the Account Numbers (Partial account numbers are fine). Only dispute a maximum of 20 accounts at one time on one letter. Send each credit bureau their own letters.
If you do not receive a response in 30 business days or the accounts you want removed are not removed, then proceed with 609 Letter #2. Follow the same pattern until you either get the accounts you want removed or you have sent out Letter #5. If after 609 Letter 5 and the Credit Bureaus do not remove the accounts you are disputing, file a complaint with the Better Business or the CFPB. The 609 letters are just a template- please be creative and twerk them to fit your specific need.
Verification and validation
are completely different.
VERIFICATION means establishing truth and accuracy. VALIDATION means to provide Legal PROOF of this truth and accuracy.
Proof of VERIFICATION are bills, receipts, and bank statements.
Proof of VALIDATION include leases, promissory notes, credit card statements/Bills, Medical Consent, contracts with an original signature from the Original Creditor NOT the collection agency. HOWEVER, do not expect a signature on something YOU DIDN’T sign!
So, when writing letters to debt collectors and/or Credit Bureaus, ALWAYS ask for VALIDATION. That is why the Second step to our Dispute process in the PINNED POST ANNOUNCEMENT section is Debt Validation. If they cannot validate it, they must remove/delete it.
Tips for Building Business Credit
Before you start applying for vendor accounts, it is important to target your efforts by applying for accounts that you are likely to qualify for. Some companies have more stringent requirements. Here is a quick reference to show you how to start with easy net 30/10 terms and work your way up to additional accounts.
It is recommended you take these steps before you apply for vendor credit:
1) Get an Employer Identification Number (EIN) from the IRS. Many businesses obtain an EIN for tax reporting purposes. An EIN will not be the identifying number in the business credit system the way social security numbers are for personal credit. However, you will need an EIN for credit applications. A D&B number will be the identifying factor
2) Register your business with your state. It’s strongly recommended you form a legal entity such as an LLC, S Corp or C Corp. If you decide to continue operating as a sole proprietor (no legal entity). If you like, you can also register your business name as a fictitious name (also known as a “DBA”) with your state.
3) Get a D-U-N-S number if your business does not already have one. This is the identifying number in the Dun & Bradstreet business credit database.
4) List your business phone number with directory assistance
http://www.listyourself.net/ListYourself/
Starting Vendors
It is best to pay 15 or even 20 days ahead of the due date so it reflects that your business pays sooner than terms.
Some starter tradelines to start with as a new business establishing business credit:
Uline (www.uline.com)
• Net 30
• Reports to D & B and Experian (business credit)
• Apply Online
• Create an account, sign in, place an order, at checkout choose bill me (net 30) or option to invoice your order.
Quill (www.quill.com)
• Net 30
• Reports to D & B
• Apply Online
• Register for a new account, place an order, at check out select the option to invoice your order.
Gemplers (www.gemplers.com)
• Net 30
• Apply Online
• Register for a new account, place an order, at check out select the option to invoice your order.
Seton (www.seton.com)
• Net 10 (only reports on purchases of $250 or more)
• Reports to D & B and Experian
• Apply Online
• Register for an account, place an order, at checkout select “bill me later” as your payment method.
Grainger (https://www.grainger.com)
• Net 30
• Reports to D & B
• Register for an account, place an order, at check out select the option to invoice your order.
Summa Office Supplies https://summaofficesupplies.com
• Net 30
• Reports to Experian and Equifax (business credit)
* Use Referral Code SOSCWI (All Caps) when you place an order & select option to have order Invoiced
• Register for an account, place an order, at check out select the option to invoice your order.
Strategic Network Solutions https://stntsol.com/
• Net 30
• Reports to Experian (business credit)
• Register for an account, place an order, at checkout select the option to invoice your order.
Once you have activated an account and made an initial purchase of $60 or more you can use your new $1,000 line of credit to purchase remote support services, digital products and downloadable. The products available in their online store are computer hardware & software, office supplies, and eBooks.
Register and make an initial purchase from their website in the amount of $60 or more. After you make an initial purchase, they will extend your company a $1,000 Net 30 trade line of credit. It’s essential to use your credit line on a regular basis since they incrementally increase your credit limit by $500 based on prompt payments and regular account activity.
Other Vendors for your knowledge…
· Advance Auto Parts
· Amazon
· CleanItSupply
· ePromos
· FedEx
· HD Supply
· Home Depot
· Laughlin Associates
· Lowes
· Newegg Business
· Office Depot/Office Max
· Staples
· UPS
· Wayfair
GAS COMPANIES
· BP Gas
· Chevron
· Conoco
· Shell
· Valero Gas
LENDERS AND FINANCING COMPANIES
· BlueVine
· The Business Backer
· Fundation
· Lending Club
· OnDeck
· QuarterSpot
· Seek Capital
http://www.listyourself.net/ListYourself/…
Income Driven Payment Student Loans
FYI….If you are planning to buy a house with an FHA loan you will have to put your student loans on the IDR payment plan. You cannot be on the IBR zero payment plan because they will calculate 1% of the student loan as your debt to income ratio. This process will slow everything down if you wait until the last minute to do it.
Did you know each Capital One card has a minimum and and maximum credit limit? Did you know that your original credit application and the report pulled for that application determine the life of your account?
If you go to their website and view the ‘Capital One Application Terms’ for any specific card it will say “If your application is approved, the minimum credit line you will receive is…”. This is the minimum credit limit for that specific card that you are viewing. You may be approved for this minimum or you may be approved for more (your personal minimum).
Each card also has a maximum credit limit so if the max credit limit on a specific card is $10,000 and your personal credit limit is also $10,000 then guess what- no matter how many times you apply for a CLI and no matter how many on time payments you make, you will be denied for the CLI because YOU CANNOT BE APPROVED TO GO OVER THE MAX CREDIT LIMIT ON A CARD because the credit limit of $10,500 simply does not exist on a $10,000 limit card. Unlike minimum credit limits, the max credit limits are not displayed on the Capital One webpage, I’m uncertain if these specific limits are actually listed anywhere.
Next … Your credit report and info in your card application determine if you can or cannot be approved for a card, we all know that, but most people do not realize that the same credit report and application determine what your maximum credit limit will be for the life of your account. What this means is that from the moment you see “YOU’RE APPROVED” they already know if you can receive CLI in the future and for up to what amount those CLI increases may be.
And here’s a bonus fun fact: your personal max credit limit can be less than the max credit for the specific card you get because of the info in your original application and on that credit pull.
Back to my card with a $10,000 max for an example:
-You apply for a card.
🎉🎉🎉Upon reviewing your application CONGRATS YOU’RE APPROVED FOR A $1,000 LIMIT!!! 🎉🎉🎉
Now, on the back end because of your application and accompanying credit report they know your personal limit is $5,000, but again, you aren’t told this.
After good payment history you apply for a CLI and get a new $2,500 limit. Then another one for $5,000.
You’ve now reached your personal max credit limit so now anytime you apply for a CLI on this card you will be denied because you’ve met the terms of your account based on your original application and credit pull.
Why do they do this? To follow lending laws and to protect their money. Just as home and auto loans give you a max amount based on your income, DTI, and payment history, so does CapOne.
Employees typically do not have access to what your personal limit is or isn’t. They also cannot tell you if this is why you are being denied so this is why when you call inquiring about why you were denied they tell you to wait for the documents in the mail, do what the docs say and reapply or give you the option to apply for another card.
Credit Sweep Vs. Credit Repair
A credit sweep is a combination of words designed to make you think difficult things are easier than they are. For example, do you want to fix your credit, or have it fixed? One of those implies you do it, one of those applies to someone else doing it. Do you want to go through a credit repair process, or do you want your credit sweep? One of those sounds like a lot of work and time and energy and money and the other sounds like a click of a button.
A credit sweep does not exist. It is simply a marketing gimmick designed by someone who wants to imply credit repair is easier than it is. I should clarify that credit sweeps do not exist legally. There are people who would gain access to the ability to do rapid resource and EOSCAR transactions and will illegally delete items from your credit report. But this is not only fraudulent but shortsighted. Suppose I can click a button and delete a collection account from your credit report. Well, that creditor will report that item next month anyway; it will pop right back on. The credit sweep, therefore, was useless.
So, the answer to your question is that credit sweep is nothing and you should pay no attention. If you are looking for credit repair, the market is saturated and filled with everything from scammers to people who dedicated their lives to the industry. During your search for credit repair companies, use your brain and the user got. If they offer credit sweeps, do not hire them.
The US Credit Repair Organizations Act (“CROA”) is Title IV of the Consumer Credit Protection Act. Despite its name, it is not actually an act; Section 401 states, however, it can be referred to as “Credit Repair Organizations Act”. The statute was signed by President Bill Clinton on September 30, 1996. The law was intended to prevent credit repair organizations from engaging in unfair business practices which may result in financial hardship for consumers, particularly those of limited economic means or who are uneducated.
The purposes of the Credit Repair Organizations Act are to ensure that prospective buyers of credit repair services from credit repair organizations are provided with the information necessary to make an informed decision. It intends to protect the public from unfair or deceptive advertising and business practices by credit repair organizations. It enumerates prohibited practices, required disclosures, contract requirements, liability, and penalties for non-compliance and procedure to report non-compliance.
One of the more important areas covered by CROA is how credit repair organizations can get paid. It is the consensus that a credit repair company can only be paid after services have been rendered. This can be done using a monthly fee model where companies charge clients monthly after services are rendered or on the more modern pay after deletion model where clients only pay after items are deleted from the credit report. Companies that charge excess “setup” fees or all their fees upfront violate the provisions of CROA.
