Turning a 700+ Score into a 800+ Score

BY REX JOHNSON

My team of consultants and I work with hundreds of credit unions each year, and we are constantly noticing new trends. In recent years, we are seeing more and more credit unions proactively taking steps to help members  improve their credit score.
You say, “Rex, that’s not a new thing, that’s been going on for years.” True, but not at the level we’re seeing it now. In the past we’ve seen things like credit counseling, credit-builder loans, etc to help those with poor credit improve their scores. Now it seems like everyone wants to enhance their score – even the 700+ members.
With more members interested in improving their score, this is one of the things we teach credit unions at our University of Lending classes. When I re-wrote the manual for our classes this year, we included an entire section on this important topic. I’d like to share a few of the basics with you here today. So what does it take to move a 700 score into the 800’s?

Scores 800 or Higher
What do they have in common?
1. No public records
2. No bankruptcy in the last 10 years
3. No collection accounts
4. No charge offs
5. No current delinquency
6. No past delinquency
7. Credit history of seven years or more
8. Homeowners for seven years or more
9. Revolving debt (credit cards) 95% available
10. Inquiries are less than three over the last 12 months
11. Unsecured debt of $5000 or less
12. Oldest trade line is at least seven years old


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