Everyone's Favorite Subject....Credit Scores! Ha

I own a beautiful red 2003 VFR that's my baby!! 14k miles in the last 12 months!

Did you Know?

Did you know that reduction in revolving balances picks up points? Do you know why?



Every person has what is called a BTL Factor Number that is based upon their unique credit history. That number is between 0-5. It is never a “round” number as it has many decimal points, I.E. “3.24568”. You will never see this number as it’s internal at the reporting agencies.



Good credit history equates to a lower number while a poor history gives a higher number.



The score decreases as the cumulative balance on all credit cards is carried past the statement date. The statement date is almost always the same date the creditor reports monthly. The client loses their BTL Factor Number at every increment of 10% of their cumulative balance.



Example: You have 3 credit cards totaling a $10,000 limit. For this example, and easy math, we will say they have a BTL# of 2.5 as that’s middle of the road. Consider these balances percentages….



Balance


Point Loss

$0-$999


0

$1000-$1999


2.5

$2000-$2999


2.5

$3000-$3999


5 (BTL# doubles at 30%)

$4000-$4999


5

$5000-$5999


7.5 (BTL# Triples at 50%)

$6000-$6999


7.5

$7000-$7999


7.5

$8000-$8999


7.5

$9000-$9999


7.5

At or Over-limit


7.5(gets hit again for being at or over the limit)



Thus, in this example, the client is losing 60 total points if they are maxed out (2.5+2.5+5+5+7.5+7.5+7.5+7.5+7.5+7.5). The good news is that there are points to be had all the way down to below 10%.


I'm open for questions and to answer any questions you may have about your credit scores for free since ya'll are VFR lovers too.

Dan McDorman
CRE Credit Services
dmcdorman@crerepair.com
www.crecreditservices.com
512-934-1421

 

Thanks for the info. :thumb:
So how can a person repair his/her credit?
Let say a friend of a friend of a friend have 0 credit and want to obtain a credit card.