The 5-Step Credit Repair Strategy

Are you maximizing your clients' credit score improvements? Many credit repair professionals overlook crucial strategies that can make a significant difference.

In this latest video, we break down the 5 key elements of credit scores and reveal actionable tips for each. You might be surprised by what you're missing.

Discover practical techniques to boost payment history, manage credit utilization, and more.

🔑 Key Components of the Credit Score (and Corresponding Strategy)

1. Payment History (35%)

• Focus: Clean up and improve clients' payment history.

• Actions:

  • Remove inaccurate negative items (e.g. collections, charge-offs, late payments).

  • Prevent future negatives through client education.

  • Target items within the last 24 months for highest impact.

  • Understand statute of limitations before disputing.

  • Request clients to submit dispute results for each round.

2. Amount Owed / Credit Utilization (30%)

• Focus: Reduce utilization on open credit accounts.

• Strategies:

  • Pay down balances to at least 30%.

  • Use debt consolidation loans to shift revolving debt.

  • Make bi-monthly payments to reduce balances faster.

  • Request credit limit increases (soft pull only).

  • Explore side income to help pay down debts.

3. Length of Credit History (15%)

• Focus: Preserve credit age.

• Guidelines:

  • Avoid closing old accounts—they carry age and positive history.

  • If necessary, only close recently opened accounts.

  • Prevent creditors from closing accounts due to inactivity.

4. Credit Mix (10%)

• Focus: Diversify account types (revolving, installment, retail).

• Actions:

  • Assess current credit profile.

  • Suggest secured cards, retail accounts, small loans.

  • Recommend rebuild credit products (e.g., Rental Reporter, Chime, FingerHut).

5. New Credit (10%)

• Focus: Control frequency of new inquiries.

• Guidelines:

  • Educate clients to limit new credit applications.

  • No more than 3 inquiries per year (top FICO scorers' benchmark).

  • Challenge unauthorized or fraudulent inquiries with the creditor, not the bureau.