Tip to Help Clients Improve Credit Scores: Friend Mentor Support
Giving credit where credit is due, pun intended, I wanted to share the below article in full. I would note, though, that for people who are "close" in getting their credit score above the bench levels for (1) qualifying at all, (2) qualifying for a better (lower priced) lender, and (3) qualifying and getting the best rate, a good loan officer will save your client money rather than having the client pay a credit-fix company.
We at PRW Lending will pull credit for free, no obligation, and, using software modeling, our experience and also the expertise of the employees of the credit company we use, we frequently can pinpoint items that a client can fix to get an increase in mid FICO score, and do a Rapid Rescore (takes up to only 3 days), such as:
- Negotiate a payoff and possibly "deletion" of a collection account that is "hitting" all three of the bureaus, or at least is hitting the client's middle score. Raising their low or high credit score does nothing to fix the one score that is considered for the home loan, the middle score.
- Pay down a balance on an account so that it is just below 30% of the maximum allowed balance.
And I'm one of the few loan officers who will get on the phone on behalf of my client should qualify after the fix is made, and call on some of these credit fix items. There is no charge for this service; it's included in my pay from doing the loan for my client who will be purchasing a home.
That being said, the below tip could be very helpful for the client who starts into the process of fixing credit items. The companies that the client has to call can frustrate your client. Once an agreement is made, getting the right language in the letter that the company provides is yet another hurdle: it has to state that the account is settled and considered a zero balance. Companies like to put language such as "when funds clear" into the letter, even for a client who paid direct funds from their bank account.
On to the article...
How the Coffee & Dessert Strategy Can Improve a Credit Score!
Written By: Jeanne Kelly, President, The Kelly Group Credit Consulting. Email firstname.lastname@example.org if you need help in getting your client’s credit scores increased.
Improving your clients’ credit scores can be a daunting task. This is especially true if you have a couple of dozen clients to keep track of. So, how do you help your clients help themselves?
I know that you know the right things to do to help your clients, but you just can’t be their only cheerleader all the time.
One of my loan officer clients had exactly that problem a few months ago. She was so overwhelmed.
So I suggested that she use the “Coffee & Dessert with a Friend” strategy to get her clients started…
Here’s the story about what two friends did to help each other out.
First, I suggested some of the standard things I always suggest to my clients – like put your papers into a binder and only work on one small thing every day. But she still found herself overwhelmed as she struggled to stay positive in front of her kids and balance all the other responsibilities of being a mom.
But what really made a difference for her was when...
I suggested that she ask a friend for help. I encouraged her to find a "cheerleader" who could help her every step of the way.
She was a little embarrassed at first but she swallowed her pride and asked her friend to help her (and of course her friend said yes… that's what friends are for, right?).
Her friend called her every few days to see how things were going – to offer some encouragement and moral support and to see what needed to be accomplished – and to even sometimes ask the tough question about why it wasn't done. (That's what friends are for, too, right?) And when it came time for my client to get on the phone and make some calls to creditors, her friend came over and cheered her on in person.
And the best part, my client reported to me later, was that every Friday her friend would come over and the two of them would celebrate one week of success with coffee and chocolate as my client shared her successes of the past week.
What a transformation! In just a couple of weeks, my client went from being frustrated and overwhelmed and anxious, to eager and supported and empowered. She looked forward to her friend's daily calls of support and she looked forward to the Friday afternoon "brag" sessions as a small reward for her work, and she aggressively tackled her credit in a way that we rarely see.
In almost no time at all, her credit was repaired and she expressed disappointment at no longer having that daily interaction that had previously motivated her!
If you are about to help clients improve their credit, it can be so easy to find yourself in a similar situation – frustrated and overwhelmed by all there is to do. Suggest that they find a friend who they trust to help them out.
Who knows? They might end up asking a friend who also wants to improve her credit and both friends can help each other out.
Copyright - 2012 - LoanOfficerMagazine.com
Lisa Delzompo (951-704-4559)
"May your home always be too small ... to hold all your friends!"
CA Dept of Real Estate, Real Estate Broker License #01379811;
NMLS Identifer #331744
REAL ESTATE: www.SandToSeaProperties.com. Covering northern San Diego, Oceanside, Temecula, Murrieta, Riverside County and desert areas of Yucca Valley, Joshua Tree and Twentynine Palms, CA.
LOANS: PRW Lending, Inc. Call direct 951-704-4559, or email me at lisa(@)sand2sea.us
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