15 Steps to Homeownership: 2. Credit

Course Title: The Power of Ownership™: Easy Steps to Smart Homebuying

STEP 2: Getting Your Credit in Shape

1. COURSE OVERVIEW

This step is dedicated to helping future homeowners take control of their credit. Strong credit is not optional—it’s essential. Whether you are seeking pre-approval, negotiating a better interest rate, or preparing to submit a strong offer, your credit history and score will determine what opportunities you can access and what costs you’ll incur over time.

This course module provides the foundation and framework to clean up, build, and maintain excellent credit. It emphasizes biblical stewardship, informed decision-making, and proven strategies to eliminate errors, reduce debt, and boost your FICO score ethically and systematically. Participants will walk away with a personalized credit repair plan and the tools needed to increase loan readiness.

1. LEARNING OBJECTIVES

By the end of this step, participants will:

• Understand the 5 key components of credit scoring.
• Pull and analyze all three credit reports.
• Identify negative accounts, errors, and collections.
• Learn how to dispute and remove incorrect items.
• Create a credit rebuild strategy.
• Know how credit utilization impacts scores.
• Set monthly credit improvement targets.
• Avoid common credit-damaging behaviors.

III. SCRIPTURAL FOUNDATION

Proverbs 22:1 (NIV) – “A good name is more desirable than great riches; to be esteemed is better than silver or gold.”

Your credit is your financial name. It reflects your trustworthiness and discipline. Protect it. Improve it. Steward it well.

Romans 13:8 (NIV) – “Let no debt remain outstanding, except the continuing debt to love one another.”

This underscores the goal: freedom from debt and the wise management of what we owe.

1. QUOTE TO INSPIRE

“Your credit score is not just a number—it’s a financial resume. It either opens doors or shuts them.” — Coach Greb

1. STATISTICAL INSIGHT

Impact: A borrower with a 620 score may pay $50,000+ more in interest over a 30-year mortgage than one with a 760 score.

1. COURSE CONTENT & INSTRUCTIONAL OUTLINE
2. What Makes Up Your Credit Score

2. Pulling and Reading Your Credit Reports

• Visit AnnualCreditReport.com
• Download reports from Experian, TransUnion, and Equifax
• Identify negative marks, late payments, collections, inquiries, and duplicate accounts

3. Credit Audit and Error Removal

• Highlight all inaccuracies and obsolete items
• Draft a dispute letter or use online bureau portals
• Include copies of statements and reports
• Send certified mail with return receipt

4. Debt Settlement and Negotiation

• Call creditors to negotiate pay-for-delete agreements
• Get all terms in writing
• Avoid paying old collections that reset reporting without removing it

5. Building Credit from Scratch or Recovery

• Apply for secured cards or credit builder loans
• Become an authorized user on a responsible account
• Use cards every month and pay in full before due date

6. Monitoring and Protecting Your Credit

• Set alerts with Credit Karma, CreditWise, or Experian
• Freeze your credit to prevent unauthorized use
• Check reports quarterly for accuracy

VII. CASE STUDY: Tasha’s Credit Comeback

Tasha was a single mom earning $52,000 annually. Her score was 585 due to past medical collections and three missed card payments. She:

• Disputed four incorrect medical bills and had them deleted
• Paid down credit cards from 80% to 20% utilization
• Opened a secured $300 Capital One card and used it monthly
• Avoided applying for new debt for 9 months

Results: Her score jumped to 712 in 6 months. She was approved for a conventional loan with 5% down at 6.1% APR.

VIII. DO’S AND DON’TS

✅ DO:

• Pull all 3 reports and highlight every item
• Dispute errors with documentation
• Pay down revolving credit balances
• Keep old accounts open and active
• Use less than 30% of your available limit
• Set reminders to pay 5 days early

❌ DON’T:

• Apply for too many new credit cards
• Co-sign loans without full control
• Close old accounts abruptly
• Leave collections unpaid without a plan
• Ignore bills that can go to collections

1. PRACTICE EXERCISES
2. Credit Report Summary Table

2. Dispute Action Plan

• List 3 accounts you will dispute
• Note what documents are needed
• Draft a template letter for each

3. Payoff Strategy

• List all credit cards and their balances
• Calculate utilization rates
• Create a 3-month debt reduction plan

4. Monthly Credit Tracker

• Score Goal: ___________
• Current Score: ___________
• Target Increase by Date: ___________

1. TEACHER’S MANUAL SNAPSHOT

Session Objectives:

• Equip learners to audit and improve credit
• Teach systematic credit rebuilding
• Apply biblical principles to debt management

Materials Needed:

• Credit report samples
• Budget calculators
• Templates for dispute letters

Instruction Strategy:

• Start with scripture
• Use real case studies (like Tasha’s)
• Group work: analyzing and fixing sample reports

1. PARTICIPANT GUIDE SUMMARY

Included Worksheets:

• Credit audit tracker
• Debt negotiation log
• Monthly credit goal sheet

Weekly Task:

• Pull credit reports
• Submit first round of disputes
• Make $50–$200 credit card payments

Reflection Prompt:

• How did your past credit behavior reflect your financial habits?
• What is one change you’ll commit to this month?

XII. CONCLUSION

Your credit is your reputation in the financial world. Fixing it takes courage. Building it takes discipline. Maintaining it requires wisdom. When you honor God with how you manage credit, you open the door to abundance.

Scripture Reminder: “The plans of the diligent lead to profit, as surely as haste leads to poverty.” — Proverbs 21:5