Video 15 – Credit Score Speed

Transcription of Credit Score Speed

The Credit Score Balance Beam

Let’s look at credit scores. Just understand how the score is constructed? A credit score is like a balance beam, OK. We’ve got positive factors on one side of that balance beam and we’ve got negative factors on the other side of that balance beam. That pointer is your score. So what creates that score is the relationship between positive and negative on that balance beam.

Lack of bad credit or no bad credit at all doesn’t make a good credit score. You still don’t have anything weighing down that positive side of the balance beam. So to create a good credit score for our clients we need to be able to make that positive side as heavy as possible and create positive credit and then make that negative side as light as possible.

It’s a two edge sword. If you go into credit repair and just say I’ll just take off the negative stuff and you’re not looking at the other side of that balance beam, you’re going to fail sometimes. Because if they have no good credit, if they’ve been through a serious crisis in their life, a bankruptcy, a major overturn where they’ve lost all of their credit, they’ve got a bunch of bad credit, they’ve got no good credit. You need to build good credit while you’re taking of bad credit off to get that score to meaningfully rise.

And on that token, when you look at a client and decide, how long is this going to take? If I’ve got a client that’s got a lot of good credit and some bad credit that’s holding them up, I take a little bit of that bad credit off, that scale tips real fast. If they’ve got no good credit and bad credit, if we take the bad credit off, we’re still not tipping the scales. We’ve still got to build this so it’s going to take a little longer on the time frame. So the speed depends on who you’re working with and what their situation is.

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