Category: CREDIT BLOG

Give Your Testimonial for a Chance to Win $500

Posted on April 16, 2021 by - CREDIT BLOG, CREDIT SCORING

As you know, I love receiving testimonials from my happy and satisfied clients.  So for fun, I have decided to host a challenge on who can give the best testimonial about their success with my 7 Steps system… AND I’ve made it SUPER EASY.  Just follow these simple instructions:
You will need to record your testimonial by calling 1-800-609-9006 Ext. 9038.
Please use the following script as a guideline for your testimonial (fill in the blanks):

  1. Hello, my name is ___________________ (first and last name)  from ________________ (city), _____________(state)
  2. What I love about Philip’s system is ______________________________ (make sure this flows from the heart)
  3. The specific results I achieved because of Philip’s system are_________________________________ (examples: higher credit score,  low interest rate, money saved per month, etc. – the more detailed the better)
  4. Philip, I want to thank you for __________________________________ (fill in the blank)

Be sure to end your recording with your phone number, as we will be contacting the winner by phone.
Once you have submitted your recorded testimonial, email a digital picture of yourself to info@720CreditScore.com.  Once your entry has been received, we will confirm receipt via email.  If you do not receive a confirmation email from us, within 48 hours call us at 1-877-720-7267.
All entries must be eighteen (18) years of age or older and submitted no later than Saturday, May 15th 2010.
The winning prize for the best testimonial will be $500.  The winner will be selected based on the following three criteria:

  1. Success with the system  – Increase in credit score (before and after score), time it took to increase your score, your savings per month due to your increased credit score.
  2. Communication – Effectiveness in communicating your success story in a clear, expressive, and genuine way.
  3. Presentation – Creativity of your script

The winner will be contacted by a 7 Steps to 720 representative and we will post the winning testimonial on this site on Friday, June 4th 2010.
Thanks for your support!
 

Consent, Waiver and Release:
 
By submitting your entry, you voluntarily and irrevocably give your consent to Philip Tirone, 7 Steps to 720, LLC , their assigns, successors, licensees, agents, advertising agencies, producers, publishers and legal representatives, the use of your name and story in all forms of media and in all manner, for advertising, trade or in any other lawful purpose, including, but not limited to 7 Steps to 720, LLC products, promotional materials and web sites. You therefore waive any right to inspect or approve your testimonial or any version thereof including a paraphrasing and release any obligation to make any payment hereunder or from any other liability incurred in connection with the use of any such text or other material in the manner provided; with the exception of the one-time payment to the chosen winner in the amount of five hundred dollars. Philip Tirone and 7 Steps to 720, LLC will not use disparaging references of your name in any form, and disclaims any responsibility for such unauthorized use of your published name or testimonial.  You voluntarily and irrevocably give your consent and agree to this Consent, Waiver and Release with submission of your testimonial.

Bankruptcy Isn’t As Dirty as It Sounds, by 720 Credit Score

Posted on April 13, 2021 by - CREDIT BLOG

I’ve written a few posts about bankruptcy lately, but it occurred to me that I should explain what happens to a credit score after a bankruptcy.
The truth is: Sometimes your credit score will be better off in the long run. And here’s why…
If you are struggling with your finances and your credit score, and you do not see an immediate light at the end of the tunnel, you will probably continue to struggle for a few more years. As you fight to stay afloat, you will probably miss a few payments here and there.
And your credit score will suffer. In two years, it will be exactly where it is now.
But if you declare bankruptcy today, and then start the process of rebuilding your credit score after bankruptcy, in two years, you could have a 720 credit score!
I always say that bankruptcy isn’t as dirty as it sounds, so I hope this eases your mind!
Sincerely,
Philip Tirone
P.S. One more thing, certain mortgage companies are stopping their clients from reaffirming mortgage debt during a bankruptcy. Some of my clients are worried about what this will do to their credit scores. To them, I just want to say: Don’t worry—you don’t need a mortgage on your credit report to have a high credit score after a bankruptcy.

Collections on Credit Report

Posted on April 12, 2021 by - CREDIT BLOG, CREDIT SCORING

Among the most-asked questions about credit scores is this: What do I do about my credit score if I have a collections on credit report?
For sure, having a collection account on your credit report is a big deal. Creditors will be unlikely to grant you a loan if you do not pay your bills. Though a collection account is not as big of a deal as having foreclosure or bankruptcy facts on your credit report, your credit score will suffer.
And though it sounds crazy, making a payment on a bill in collection might cause your credit score to suffer again. Bills that have been turned over for collection hurt your score only a bit after two years, but as soon as you make a payment, your score will be damaged again. As well, making a payment renews the seven-year period in which an item stays on your credit report.
So what do you do about those pesky collections on credit report? Paying your bills is your responsibility, even if it causes your credit score to suffer. However, you can and should negotiate with the creditor or collection agencies to minimize the damage.
Especially in today’s economy, you might be able to negotiate to pay less than the full amount of the bill. Though this doesn’t remove the collections from your credit report, paying a lesser amount can surely help your pocketbook!
Better yet, consider negotiating for both a smaller payment and a letter of deletion.
Not to be confused with a letter of payment, a letter of deletion is basically a letter they send to the credit bureaus saying that the bureaus should remove the collections on credit report. This is obviously the best-case scenario. Your credit score will surge if you can get a letter of deletion that wipes the collection from your credit report!
Qualifying for a letter of deletion is tricky, though. This technique will work best if the collection item was not correctly sent into collections.
The Fair Debt Collection Practices Act limits the ways creditors and collection agencies can contact you. If you believe that they have violated the Act, you might be able to get a letter of deletion, so long as you promise to pay the collections on credit report. The most common violation of the FDCPA occurs when a collector fails to advise debtors about their right to dispute part or all of the debt within 30 days of first contacting the debtor.

Is your car a filthy mess?

Posted on April 6, 2021 by - CREDIT BLOG

How about your home? Your office? Your yard?
I’m a little embarrassed to say “yes, yes, yes, and yes.”
Or, at least, that was the old me. I’m a hyper, busy guy, so everything was a mess.
When was I supposed to find time to organize my stuff when I was constantly rushing to do the next big thing?
But then I started noticing something…
By training my mind to give every physical thing a purpose, I started making better decisions about my time and my finances.
The floor of my car is not a trashcan. That’s not its purpose. Its purpose is to stabilize the car, keep me from falling through, hold the seats in place, etc. It was not created with the goal of holding my garbage.
So I don’t put garbage on the floor of my car. If I must store garbage in my car, I place it in a bag whose purpose is to hold garbage.
Now, you might be thinking that organization and cleanliness are irrelevant to credit or financial problems…
But I disagree.
If your physical space is sloppy, your life will most likely be sloppy…
Training your mind to give everything its purpose and its place allows you to make better financial and spending decisions.
If your mind is not trained to examine everything, decide its purpose, and then put it in the right place, you will make purchases that do not honor your long-term goals.
You will make buying decisions that do not have a purpose.
Your budgeting will be sloppy…
Giving things a purpose, and then placing them where they belong, gives you control over your life. It allows you to immediately eliminate dead weight and garbage.
It also gives you the opportunity to accept things that will improve your life.
Imagine the impact of training your brain to put things in its place.
You can immediately eliminate expenses that are silly. You can immediately accept ideas that will help you become more frugal.
You can immediately stop yourself from making purchases that don’t have a purpose…
What do you think? Am I crazy? Spot on? Let me know your thoughts below!
– Philip Tirone

Closing Credit Card Accounts

Posted on April 5, 2021 by - CREDIT BLOG, CREDIT SCORING

As part of your plan for learning how to build credit, you might wonder if you should start closing credit card accounts. After all, if you have more than five credit cards, you have more than the ideal number.
True, credit scoring systems are happiest if you have no more than five credit cards. But before you make that call to the credit card company, be aware that closing credit card accounts can have a major impact on your credit score. Keep in mind a few basics about owning credit cards.
Fifteen percent of your credit score is derived from the age of your credit accounts, with older credit accounts giving you a better score. This part of your credit score is based on the average age of your accounts. As a result, every time you terminate older accounts, you drive down the average age of your accounts considerably and risk decreasing your credit score.
You should also consider how closing credit card accounts will affect the portion of your credit score that considers your credit card limits and balances. Your “utilization rate” is the ratio of your credit card balance against your credit limit, expressed as a percentage. If you have $800 of debts on a credit card and your available line of credit is $2,000, your utilization rate is 40 percent. Since credit-scoring bureaus reward people who have utilization rates below 30 percent, you should try to always keep your utilization rate under that threshold.
Closing credit card accounts can impact your utilization rate in a couple of ways. First, if you decide to cancel a credit card and transfer the remaining debt to another card, you may cause the utilization rate on the second card to rise sharply, which will cause your credit score to drop. Even worse than transferring a balance is leaving a balance on your card after canceling the account. If you leave a $700 balance on the canceled card, your utilization rate will suffer dramatically since the limit on the card will be $0.
So what is the plan for dealing with a bunch of credit cards? Even FICO agrees that closing credit card accounts is a bad idea. Your best bet is to keep all of them active but pay them off every month. You can even find ways to live debt-free and keep your credit cards active. A steady history of payments will demonstrate to credit-scoring bureaus your ability to manage your accounts and will eventually improve your credit score. Pay special attention to the cards with the highest limits, oldest ages, and best interest rates. Be sure to keep these cards active, maintaining a utilization rate below 30 percent.
A final note: Retail credit cards (those associated with a specific store, such as Bloomingdales) are an exception to the “keep-them-open” rule. Keeping a balance on these cards may be difficult since you probably do not need to buy something from these stores each month. Letting a retail account go inactive may not be the ideal choice, but it should not be a cause for alarm unless it causes your credit score to drop, in which case you might be able to reactivate the card with a simple phone call.

For People Who Want to Raise Their Credit Score… and PRONTO, by 720 Credit Score

Posted on April 5, 2021 by - CREDIT BLOG

This is one of the tricks for raising credit scores that most people don’t know about …
It’s calling “authorized user.” If you become an authorized user on someone’s credit card, your credit score will increase as long as that credit card is in good standing.
In fact, I’ve seen people’s scores increase sixty points just by becoming authorized users.
The catch is that you must meet certain qualifications to become an authorized user: you must choose the right person and the right credit card. Read this article about becoming an authorized user to see how to qualify.
Sincerely,
Philip Tirone
P.S. If you have a bad credit score, and you have fewer than five credit cards, I strongly suggest that you become an authorized user!
P.P.S. I’ve been working on an exciting project for people who have been wronged by the credit bureaus. Keep your eyes peeled… I’ll be releasing it soon.

The 7 Magic Words

Posted on March 30, 2021 by - CREDIT BLOG

In last week’s post, I told you about how I do odd things to get exposure to people who can inspire me and help me make important shifts in my life…
My point was this: If you want to change your financial circumstances, you could consider surrounding yourself with people who are going to help you get out of debt, fix your credit score, or increase your savings. By getting exposure to these people, you will naturally be exposed to ideas, habits, and activities that will help you change paths.
These people come in all shapes and sizes. You could decide to start having a weekly conversation with your sister- in-law, who is a master at budgeting and living on a shoestring. If you are a mortgage broker who just can’t make ends meet, you could find a mortgage broker who figured out how to make money in this economy.
Or you might want a mentor who can help you make other important shifts in your financial life or even in your career…
So if you are looking to meet with the Zig Ziglars, Ken Carters, and Rick Carusos of the world, I thought I’d pass along a strategy I use.
It’s called the 7 Magic Words, and I’ve used the strategy to get in front of all sorts of people…
So what are these seven magic words that will help you get exposure to the people you need to meet?
Here they are:
“What can I do to support you?”
These seven magic words open all sorts of doors.
Let’s say you are an employee at a large company. You want to have lunch with the head of the company, but he’s a busy man, and you are just one more face in the crowd.
Imagine what would happen if you sent your boss an email that said something like this …
Dear Steve:

What can I do to support you?

I want to be a superstar employee— someone who is with this company for many years; someone who becomes an integral part of the team. So what can I do to contribute more to the company?

Can I take you to lunch and find out more about you and your ideas for the company?

I know you are busy, and that your time is important. This week, I have $25 in disposable income. I know it isn’t a lot, and it certainly won’t compensate you for your time, but I’d be happy to donate it to a charity of your choice if you could spare an hour for a lunch meeting. And if you don’t have time for lunch, maybe we could grab coffee and talk for 15 minutes.

Sincerely,
Jason
If you promised to give your last $25 to your boss’s charity, do you think he or she would take notice of you? And do you think he or she would be willing to consider you for a raise or promotion when a spot opened up? I know I would!
Of course, if you are up to your neck in debt, you might not want to donate $25 to charity. No problem—let your boss know that you’ll donate five hours to a charity of his or her choice! Or do something—anything—to let your boss know that you are driven and want to move your life forward.
As always, let me know your thoughts by leaving a comment below!
– Philip Tirone

How to Build Credit Fast

Posted on March 29, 2021 by - CREDIT BLOG, CREDIT SCORING

People regularly ask me for tips on how to build credit fast. Among the usual—paying down credit card limits and becoming authorized users—I tell spouses to leverage each other’s credit scores.
For a variety of reasons, you might need to learn how to build credit fast. Maybe you are applying for a loan and want to secure lower interest rates. Perhaps you are a candidate for a job at a company that runs a credit check before hiring new employees. (After all, 60 percent of companies run a credit check at least some of the time.)
If you have a balance that exceeds 30 percent of the limit on a credit card, you can transfer a portion or the entire balance to your spouse’s credit card.
This is among my favorite tips for how to build credit fast because it makes a huge difference. With the credit scoring systems calculating outstanding debt as 30 percent of your credit score, your score will quickly increase if you lower your outstanding debt. You can then walk into the loan application or job interview with low personal debt and a higher-than-usual credit score.
Though you might lower your spouse’s credit score, you can quickly “buy back” the debt using your credit cards once you secure the loan or job. Of course, you will need to repay the favor if your spouse ever needs tricks for how to build credit fast!

60 Minutes Exposes The Truth About The Bureaus, by 720 Credit Score

Posted on March 27, 2021 by - CREDIT BLOG

Did you see the horrifying 60-Minutes special on how you have been a victim of the credit-scoring bureaus? Even if you want to build a 720 credit score, the bureaus are standing in your way!
I say that the 60-Minutes report was horrifying because it revealed just how corrupt the system is. People like you are being taken advantage of by the credit-scoring bureaus, who have no interest at all in helping you build a 720 credit score.
In fact, the credit-scoring bureaus are negligent when it comes to protecting people’s rights.
When I founded 720 Credit Score dot com, I wanted to help people fight the system. I’ve exposed a lot of the rules of credit scoring so that people can build a 720 credit score, despite the secrecy of the credit-scoring bureaus.
And over the past few months, I’ve been working with attorneys on another way to fight the system …
A system that practically reaches into your pockets and steals your hard-earned money by imposing artificially high interest rates…
I’ve been working with attorneys because it has come to my attention that you might be able to sue the credit-scoring bureaus.
The credit-scoring bureaus are required by law to make a reasonable attempt to protect your credit file. But guess what?
Their attempts are pathetic. The lower your credit score, the more money made by the credit-scoring bureaus’ clients (banks and credit card companies)! So there is a good chance that the credit-scoring bureaus have artificially lowered your credit score due to their negligence.
Please keep your eyes peeled because in the coming weeks, I’m going to show you how to fight back…
If you want to watch the 60 Minutes episode, click here