What It Takes to Optimize Credit: Just One Click

We’ve talked a lot about the value of optimizing credit, for the borrower and the lender. But mortgage applicants won’t come into the lender’s office knowing it is possible, let alone with any idea of how to do it. That’s because no one has spoken to them about optimizing their credit before, and that falls to the lender to help guide them through the process.

This makes sense: the lending decision hinges on credit, credit is one of the first steps in the mortgage process, therefore starting a credit optimization conversation early action in the mortgage process makes sense.

But lenders aren’t credit experts and they really shouldn’t expected to be.  That’s why CreditXpert provides information to lenders that they can use to explain this important process and show them a bespoke credit plan to move forward with the best possible loan package.

It’s crucial for lenders to know that by taking straightforward steps with their credit accounts, 70% of mortgage applicants could boost their credit scores. The key isn’t mysterious—it’s about knowing the exact steps to take, when, and how much, thanks to advanced analytics from CreditXpert. Our data indicates applicants could see an increase of at least 20 points in their credit scores.

There are other reasons lenders should lean in here as well, including the money they can save on LLPA premiums when credit scores are higher and the money they can save their borrowers on PMI, should they need it and possibly lower homeowner insurance premiums.

But how can they do it? It may surprise you to know that optimizing credit is so simple, it takes just one click.

Step 1: What Could the Credit Score Be?

Run the loan applicant’s credit report. This is the starting point. And it doesn’t matter what the applicant’s credit score is.  The question every Mortgage Loan Officer or Credit Specialist should ask about every credit score is this, “what could it be”, rather than settling for what it is. Helping the 70% of borrowers who can optimize their credit scores do so helps build relationships with those borrowers and will positively impact pull-through.  A higher score will also reduce LLPA premiums, increasing the lender’s profit on the loan. Just one of the many positive outcomes that CreditXpert can deliver.

Step 2: Build a Custom CreditXpert Plan

Run the CreditXpert plan. Built on an algorithm based on our experience with over 1 billion credit files, our platform runs hundreds of scenarios on the consumer’s credit file, with variables like time and money, until it finds the optimum steps the applicant can take to get to their target score.

Step 3: Track Borrower Progress in the Platform

Give the report to the borrower and track their plan progress in the CreditXpert Platform. What a meaningful reason to follow-up, too! More than 70% of loan applicants who receive a CreditXpert credit optimization plan will follow through, increasing their scores within about 30 days.

Step 4: Make Rescores a Thing of the Past

If needed, lenders can pull the borrower’s credit again and use the new score to underwrite and close the loan. However, in the new CreditXpert experience tradelines and dates will show on each custom credit plan.

Step 5: Calculate Your Return on Investment

We have a free tool that will allow you to see exactly how much more money you earned on the loan. Typically, lenders see 12X to 17X returns on our platform.

Step 6: Build Your Network with Referrals

Ask your borrower for referrals and put them on your email marketing list. You can also ask for testimonials and online reviews.

Credit optimization with CreditXpert is easy, expedient, and economical. It doesn’t require any extraordinary effort on anyone’s part. Instead, it provides a new, meaningful, value-added way to develop and maintain borrower relationships, close more loans and earn more money on each deal.

Find out more by reaching out to us today to find out how easy it is to get started. Want to learn more about how to raise your credit score quickly, check out HousingWire’s article covering how lenders can help their borrowers.