Profile Optimization: The focus point to helping a client optimzie their profile is to put them in the best possible situation to maximize their funding potential. Following these steps will allow you to help your client do that.
1. Ask for higher credit limits
This is one of the most simple things to do. Instruct the clients to call the credit card companies that they have products with and ask for a SOFT PULL limit increase. This is the easiest way to change utilization and it does not cost anything.
2. Pay credit card balances strategically
When paying credit card balances down strategically you want to aim for a goal of 30% or less utilization. When speaking with the client you need to inform them that if they have higher utilization than this it can make their profile look "risky" to banks and suggest paying them down.
If they do not have the funds to pay them down, suggest consolidating them utilization a personal loan.
We also have the ability to help them move debts around to different credit cards as well but inform them we charge for that service (5% of total amount we need to liquidate) as we incur fee's when liquidating.
3. Become an authorized user
When a responsible party adds you to their credit card it can benefit you only if they keep low utilization on that specific card. When you are added to a credit product as an Authorized User in most cases it will increases your credit age and history of on time payments. In some cases they will add the available credit, but keep in mind being an authorized user does not outweight adding their own personal card but it can offset a young credit age.
4. Adding credit depth.
In some cases a person may not have enough personal credit cards. If they do not have the recommended amount of personal credit cards (5 personal cards) suggest adding more personal cards to increase their depth. Keep in mind this will also change their credit age and if they have a younger profile you may want to suggest adding tradelines to maintain a healthy credit age.
5. Dispute negative marks
If clients have negative marks, suggest looking into credit repair with our new representative. This will allow them to maximize their potential funding especially if they have multiple late pays, charge offs, collections or anything deragatory.
