Credit Score Education

2. The Blue Water Credit Team:

3. Who Is Blue Water Credit?
• We are a Local Legal and Ethical Credit Restoration Company.
• Our Purpose is helping our clients improve their credit, to
qualify to purchase a home or for Peace of Mind
• Bonded in the State of CA- BUIFSU0484434
• Registered with Dept of Justice yearly.
• Guaranteed Results! (see website for details).
• We will not take on clients that we feel we can’t help.
• We believe in having clear communication and expectations
with our customers.

4. Rated “A” with BBB

5. What exactly is it?
Credit Score

6. FICO is the only credit score banks use.
You can only get your FICO score from www.myfico.com or from a lender
Predicts the statistical chance of a consumer becoming 90 days late or
more on a particular loan obligation in the next two years
Each score is specific for each bureau
Why aren’t all three scores the same?
We have seen numerous types of credit scores (other than FICO)
1 out of 4 Americans have less than a 600 FICO
The Credit Score

7. The Bank’s Odds
Score Odds of Being Late
800 1500 to 1
720 650 to 1
680 100 to 1
650 50 to 1
620 15 to 1

8. It is virtually impossible to predict score, but these are some estimates
on points lost to a score of 740:
 30 days late: 40 - 110
 90 days late: 70 – 135
 Foreclosure, short sale or deed-in-lieu (same effect): 85 – 160
 Bankruptcy: 130 – 240
 The higher the score the larger the loss.
Impacts on Credit
Blue Water Credit

9. • At Experian:
Experian, FICO Risk Model V2–Personal
finance
Experian, FICO Risk Model V2–
Installment Loan
Experian, FICO Risk Model V2 – Bankcard
Experian,FICO Risk Model V2 – Auto
Experian, FICO Risk Model V2
Experian, FICO Risk Model V3
Experian, FICO Risk Model V3–Auto
Experian, FICO Risk Model V3–Personal
Finance
Experian, FICO Risk Model V3–
Installment Loan
Experian, FICO Risk Model V3–Bankcard
Experian, FICO Risk Model 08–Mortgage
Experian, FICO Risk Model 08–Auto
Experian, FICO Risk Model 08–Bankcard
Experian, FICO Risk Model 08
Experian, FICO Advanced Risk Score 1.0
Experian, FICO Advanced Risk Score 2.0
• At Equifax:
BEACON 09
BEACON 09 Mortgage
BEACON 09 Bankcard
BEACON 09 Auto
BEACON 5.0–Mortgage
BEACON 5.0–Auto
BEACON 5.0–Bankcard
BEACON 5.0–Installment
BEACON 5.0–Personal Finance
BEACON 5.0
BEACON 96
BEACON 96–Auto
BEACON 96–Bankcard
BEACON 96–Personal Finance
BEACON 96–Installment
Pinnacle 1.0
Pinnacle 2.0
• At TransUnion:
FICO Risk Score, Classic 98
FICO Risk Score, Classic 98 Auto
FICO Risk Score, Classic 98 Personal
Finance
FICO Risk Score, Classic 98
Installment Loan
FICO Risk Score, Classic 98 Bankcard
FICO Risk Score NextGen
FICO Risk Score NextGen 03
FICO Risk Score, Classic 08
FICO Risk Score, Classic 08 Auto
FICO Risk Score, Classic 08 Bankcard
FICO Risk Score, Classic 08 Mortgage
FICO Risk Score, Classic 04
FICO Risk Score, Classic 04–Auto
FICO Risk Score, Classic 04–Bankcard
FICO Risk Score, Classic 04 –
Installment
FICO Risk Score, Classic 04–Personal
Finance
The Different Types of
FICO Scores

10. www.MyFico.com

11. -Past Delinquencies
Late payments, Collections, Charge Offs, Liens.
-Debt Ratio
Credit Card Balance vs. Limit. Keep lower than
30%
-Average Age of File
The Older Credit Cards Score More
-Mix of Credit
3-5 Credit Cards, 1 Auto, 1 Home
-Inquiries
85 pts: Lose Up to 5 points
Exception:
Rate Shopping: for Auto or Mortgage
Credit Score Components
Fico Score Range:
300 to 850 points
Delinquencies
35%
Debt Ratio 30%
Age of Credit 15%
Mix of Credit
10%
Inquiries
10%

12. Is Bad Credit a Life Sentence?
Unpaid tax liens 15 years from filing date
Bankruptcies Chapter 7 & 11 10 years from filing date
Bankruptcies Chapter 13 7 years from filing date
Paid Tax Liens 7 years from date satisfied
Late Payments 7 years
Short sale, foreclosure 7 years
Charge-offs 7.5 years from 1st late payment
Judgments 7 years or S.O.L. (if longer)
Inquiries 2 years
Length of Time Derogatory Information is
listed on your report:

13. Settling Collections or
Charge Offs
True or False?: Paying a collection will increase credit scores?
False! One of the most common myths about credit scores (FICO) is that if
you were to pay or settle collection accounts that your scores improves.
paying a collection will not increase your score because it’s the fact that the
account went into collection status is what’s hurting it. The only way your
score will increase is if the collection agency deletes it off your credit report
or if we manage to delete the account with the credit bureaus. The
collection agencies are not obligated to delete the account off your report
just because you pay the amount. The only thing the agency is legally
obligated to do is update the balance to zero.
-Settled for less than full balance has the same effect on credit score with a collection or charge off.
Always get the agreement in writing before you give them any money!

14. Account in Dispute
While the credit bureaus are conducting their investigation of
the validity and accuracy of an account they will often times
put the verbiage, "consumer disputes account information" or
"information disputed by consumer" in the comments section
of that particular account.
Example:

15. How to Remove an
Account in Dispute
1. Call the creditor directly. Explain there is a Compliance
Condition Code listed on the credit report that reads
“Account Information Disputed by Consumer”. Request it be
removed by submitting a Universal Data Form to the credit
bureaus.
2. Request that you get something in writing.
3. Mail written requests to the credit bureaus.

16. We Are Here to Help:
Improving credit scores for qualification
Settling Debt:
Removing “Account in Dispute” from credit reports
Credit report review and advice
Getting short sales and foreclosures to report
correctly

17. About Credit Repair
 Fees can not be charges upfront. Only after services have been performed.
 Company must be bonded and registered with the Department of Justice each
year.
 100% removal of negative items can not be guaranteed.
 Results take 30 to 45 days in most cases.
 Items that are hurting a credit score can be removed if they are: Incorrect,
incomplete, outdated or unverifiable.
 Items that can be permanently removed from a credit report are: late payments,
paid collections, paid charge offs, judgments, tax liens, accounts included in
bankruptcy, bankruptcy, and inquiries.

18. View your Results on
Your Portal

19. We’re on Facebook!

20. Thank You!
Address: 300 Harding Blvd., Ste 205, Roseville, CA 95678
Phone: 916-315-9190 or 877 577 7496
Website: www.bluewatercredit.com
Facebook: www.facebook.com/bluewatercredit