A FINANCIAL literacy coach has revealed his top four tips for improving your credit score.
Dion Coopwood is the CEO of online credit improvement firm M2Phenom and has helped thousands of Americans improve their credit scores since 2021.
Dion Coopwood grew up poor but is now a financial literacy coach helping others get out of debt[/caption]
The father-of-four is now on a mission to help others do the same so they can “live the life they want.”
“Millions of Americans have bad credit ratings and that means they’re probably not able to live the lifestyle they want,” said Dion Coopwood, who grew up in Chicago and now lives in Atlanta, Georgia.
“That’s not right and there aren’t enough people in the financial literacy space to help everyone who needs it.
“That’s why I feel it’s my mission to help them. Not for myself but for them so they can enjoy life to the full.”
Coopwood grew up in poverty in a single-parent household in Chicago and despite going on to have a successful career in sales, he struggled to save money.
This lack of financial literacy showed and he was in thousands of dollars of debt in his 20s – despite earning $130,000 annual salary.
He has since turned things around and has shared his top four tips for improving your score.
1. MAKE SURE YOUR CREDIT REPORT IS ACCURATE
Coopwood explained what people don’t realize is that the information that builds your credit reports can be inaccurate.
He said that’s because the three major credit bureaus (Equifax, Experian and TransUnion) don’t always communicate with each other.
So if the date an account was opened or the balance doesn’t match up across all three bureaus it can get deleted.
Coopwood added if that’s the case, you need to challenge it. The only way you do it is through what’s called a factual dispute. It involves paying to see your reports and then challenging them, either personally or through a company on your behalf, to correct it.
Coopwood always recommends writing personal letters to each of the agencies outlining exactly what is wrong and to make sure it’s backed up with proof so your score can be corrected.
2. PAY LOANS ON TIME
The bank is looking at your credit profile and credit score to work out if you’re somebody to do business with.
Coopwood pointed out if you’ve got loads of late or missed payments, are they going to lend you money? Probably not. He said it makes you look like an unsafe bet.
He said whenever you can, pay your debts on time. If you’re struggling, don’t bury your head in the sand. Reach out to the lender and explain your situation to see what you can work out.
3. DON’T GO TOO CLOSE TO YOUR CREDIT LIMIT
Coopwood said if you’ve got six lines of credit and they’re all maxed out, no one’s going to give you more money. They’ll assume you’ll max that one out too.
He advised not to live beyond your means. He said to ask yourself: do you need six credit cards? How are you going to finance it all?
Try and consolidate your debts where you can and get plans in place to gradually reduce them. Always make it affordable so if you do need to borrow more money you’ve got capacity to do so.
If you’re struggling, don’t bury your head in the sand
Dion Coopwood
4. BUILD A CREDIT HISTORY
This takes time and isn’t a quick fix, but it’s never too late to start.
Coopwood said even if it’s a cell phone contract or something minor – if you’ve consistently paid back the right amount on time then it shows you’re trustworthy.
Don’t be scared of using your credit card either, as long as you know you can clear it at the end of the month. That doesn’t mean you should max it out but maybe use it to fill up with gas once a week and clear it when you get paid. This tells lenders that you’re reliable and will help boost your score.
Coopwood advises to not live beyond your means and it will help you keep your credit score in good standing[/caption]
