Credit HeroTM, Andre Coakley, is such an inspiration to the entire credit repair community because his primary motivation is to help as many people as possible.
Andre doesn’t just want to help his clients; he’s also invested in helping other credit repair specialists so they can help clients in their community.
He’s all about collaboration over competition.
Andre says, “I believe that to be fruitful in life, whenever you take from a source, you must put yourself in a position to freely give back to that same exact source.“
Andre lives and breathes a mission of service, and does a ton of fantastic outreach. He speaks at schools, church events, correctional institutions, business mixers, and to community groups for youth.
He also hosts homebuyer workshops.
In his workshops, Andre discusses what it takes to be a homeowner, how poor credit costs would-be homeowners, and how to get to a place where you can afford mortgage payments.
Recently, Andre shared one of his homebuyer workshop presentations with our Credit Repair Cloud Facebook community.
In the spirit of community over competition, I want to share how Andre structures his homebuyer workshops and the type of information you can present to your community, and how homebuyer workshops can help you acquire new leads for your credit repair business.
What Poor vs. Excellent Credit Looks Like
The first step toward homeownership is deciding you’re ready to jump in. The second step is proving to lenders that you have strong enough credit to do so responsibly.
That’s why Andre kicks off his presentation by addressing what a strong credit score is and how it impacts your likelihood of getting approved for a mortgage at this exact moment.
Andre shares this chart with his workshop attendees to paint the picture:
In most cases, your clients will need at least a FAIR credit rating (score of 620 or higher) to qualify for a mortgage. The higher their score is, the more likely they are to be approved, and the lower their interest rate will be.
How is a Credit Score Calculated?
Your workshop attendees might not know what their credit score is, or how it’s calculated. Let them know that they can check their credit report for free at AnnualCreditReport.com. To see scores, and monitor their credit score, they can sign up for a $1 trial at IdentityIQ.
You should also explain how the “Big Three” credit bureaus (Experian, Equifax, and Transunion) calculate credit scores (also known as a FICO® score):
When your clients know their financial starting line, they can understand what to do to improve their credit, increase their odds of approval, and lower their interest rates.
How Credit Score Impacts Total Cost
One of the most jaw-dropping slides in Andre’s presentation is when he shows how wildly different interest payments will be for clients with excellent credit versus those with fair credit.
Check out this graphic:
Yep, you’re seeing that correctly.
If your clients have a credit score of 620 but find a way to raise it to 720 before applying for a mortgage, they could save over $100,000!!! That’s a major chunk of change.
This stuff is not taught in school, and understanding credit isn’t common sense. In fact:
- 61 million Americans have subprime credit scores
- 33 million Americans do not have enough credit to generate a credit score
- 24 million Americans have no credit file
How to Improve Credit Before Applying for a Home Loan
When your homebuyer workshop attendees see the $100,000 difference in interest, not only will their eyes widen, but their wheels will start to turn… “How can I improve my credit score?”
If you’re in the mortgage industry, you may be hoping to get new leads from your credit repair workshop. Don’t let this goal steer you away from teaching your class the secret sauce for rebuilding credit on their own. It’s all about building trust, showing your authority, and helping others! The leads will come, don’t worry!
That’s why Andre always gives the rundown on the ‘do’s and don’ts’ of DIY credit repair:
Don’t:
Your clients should never dispute anything on their credit report until they read the laws!
The most important being:
- Federal Credit Reporting Act (FCRA)
- Credit Repair Organization Act (CROA)
- The Truth in Lending Act (TILA)
- Fair Debt Collections Practices Act (FDCPA)
You might also point them to some resources for further reading:
As a credit repair specialist, don’t forget you’re on the hook for this step too! In addition to the sources above, you’ll also want to check out the laws by state and refer to Credit Repair Cloud resources for up-to-date information.
Do:
If your attendees take on credit repair for themselves, they will need to learn the best ways to repair credit through personal finance best practices and legal credit repair tactics. For example:
- Correct any errors by disputing negative or inaccurate items with the credit bureaus. Credit Repair Cloud software makes this super easy!)
- Establish different types of credit: revolving and installments. By doing this you will create a healthy mix of credit which is about 10% of your overall score.
- Always pay bills on time and never max out cards.
- If your client doesn’t have two or more revolving credit cards, they could consider piggybacking a spouse or relative’s credit card. Especially if their card has a high limit, low balance, and has been open for a long time, your clients can inherit their positive history and boost their score.
- Keep revolving balances like credit cards as low as possible, preferably zero, but at the very least keep them below 30% utilization, and know your credit limits. The more available credit you have, the higher your score will be.
- Advise them to be careful not to apply for credit in the months leading up to buying a home unless they REALLY need it, because each inquiry can knock your score down.
Building credit takes time and effort. Be clear about what your listeners need to do to get their finances back on track and put their goal of homeownership within reach.
Add a Special Offer into Your Homebuyer Workshop
Though the goal of your homebuyer workshop is to empower as many people as possible, some of your attendees will realize they don’t have the time, expertise, or patience to take on credit repair for themselves.
If your attendees feel reluctant about fixing their own credit, it’s a great opportunity for you to swoop in with your Credit Hero cape and lend a helping hand.
Not only do you have the necessary skills to help your clients with credit repair, but you should also have a trick up your sleeve: Credit repair software that enables you to automate the credit repair process, making disputing items a cinch.
Pull out your laptop or tablet and offer your prospect a free credit analysis. It only takes a minute using our simple audit feature in Credit Repair Cloud.
That’s why Andre offers a discount on credit repair consulting for those who attend his workshop. This is a great way to show value and attract new leads for your credit repair business.
Now it’s your turn!
Are you considering a new or additional form of recurring revenue for your mortgage business? Check out our Credit Hero Challenge that will give you all the tools you need to start your own credit repair business!
