Credit Needed to Sell FE

[RonSmith1984]

Hey Guys, I know that having good credit is important to have when selling Final Expense as you are being advanced 75% of the 1st years AP. My question is, what kind of credit is needed?

Im not positive as to what my credit score is, I think its in the mid 600's...

One think I can say is that my credit is good enough to be approved for a home loan as I just purchased a home 5 months ago. I dont have a lot of credit history tho as I have never really bought anything on credit, or financed anything.

About a year ago, I got a secured credit card to help improve my credit and my bank has just recently upgraded me to an unsecured credit card.

With that info, do you think there would be any reason why credit would be a hindrance for me in this field?

 

[Newby]

Hey Guys, I know that having good credit is important to have when selling Final Expense as you are being advanced 75% of the 1st years AP. My question is, what kind of credit is needed?

Im not positive as to what my credit score is, I think its in the mid 600's...

One think I can say is that my credit is good enough to be approved for a home loan as I just purchased a home 5 months ago. I dont have a lot of credit history tho as I have never really bought anything on credit, or financed anything.

About a year ago, I got a secured credit card to help improve my credit and my bank has just recently upgraded me to an unsecured credit card.

With that info, do you think there would be any reason why credit would be a hindrance for me in this field?

Lack of credit is not going to hurt you. Bad credit will.

Are you behind on payments? Have you ever defaulted on a car loan, medical bills, credit cards? Do you owe back child support? Do you owe ANY money to an insurance company?

Those are the ones that will keep you from getting advances.

Do yourself a favor and take 50% advances and keep your credit from getting bad in the future. 75% will get you in trouble.

 

[RonSmith1984]

NO to all of those.

and thanks for the tip on the 50%. What I was thinking of doing was all of the following,

1) setting aside 10k into a separate account that will be like a "chargeback account" so that if by some unforeseen streak of misfortune my chargebacks begin to outweigh my AP it will have me covered.

2) only draw a $1,000 per week salary off of my company and leave whatever else money is there to cover chargebacks and any other unforeseen expenses that may arise.

3) after the 1st year and residuals start to come in elect to be paid as earned and completely avoid chargebacks.

Lack of credit is not going to hurt you. Bad credit will.

Are you behind on payments? Have you ever defaulted on a car loan, medical bills, credit cards? Do you owe back child support? Do you owe ANY money to an insurance company?

Those are the ones that will keep you from getting advances.

Do yourself a favor and take 50% advances and keep your credit from getting bad in the future. 75% will get you in trouble.

 

[Newby]

NO to all of those.

and thanks for the tip on the 50%. What I was thinking of doing was all of the following,

1) setting aside 10k into a separate account that will be like a "chargeback account" so that if by some unforeseen streak of misfortune my chargebacks begin to outweigh my AP it will have me covered.

2) only draw a $1,000 per week salary off of my company and leave whatever else money is there to cover chargebacks and any other unforeseen expenses that may arise.

3) after the 1st year and residuals start to come in elect to be paid as earned and completely avoid chargebacks.

You sir are rare and smart. You will succeed.

Most agents think more advances are a good thing. That's what takes a lot of them down financially.
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You sir are rare and smart. You will succeed.

Most agents think more advances are a good thing. That's what takes a lot of them down financially.

I actually added a page about this on my website just yesterday. – Taking too much Advance on Commissions

It's in the what not to do section.

 

[elitemind]

NO to all of those.

and thanks for the tip on the 50%. What I was thinking of doing was all of the following,

1) setting aside 10k into a separate account that will be like a "chargeback account" so that if by some unforeseen streak of misfortune my chargebacks begin to outweigh my AP it will have me covered.

2) only draw a $1,000 per week salary off of my company and leave whatever else money is there to cover chargebacks and any other unforeseen expenses that may arise.

3) after the 1st year and residuals start to come in elect to be paid as earned and completely avoid chargebacks.

Sounds like you have all off your bases covered if you can keep good quality business on the books you will do fine.

 

[funeraldirector]

Hey Guys, I know that having good credit is important to have when selling Final Expense as you are being advanced 75% of the 1st years AP. My question is, what kind of credit is needed?

Im not positive as to what my credit score is, I think its in the mid 600's...

One think I can say is that my credit is good enough to be approved for a home loan as I just purchased a home 5 months ago. I dont have a lot of credit history tho as I have never really bought anything on credit, or financed anything.

About a year ago, I got a secured credit card to help improve my credit and my bank has just recently upgraded me to an unsecured credit card.

With that info, do you think there would be any reason why credit would be a hindrance for me in this field?

I say to hell with good credit! It's none of their business...Production will save you!...Get appointed with Lincoln Heritage at 80%. The commission doesn't matter because everything you write will be approved. Get advanced at 75% and then hit the street. In two weeks you will be financially healthy. Don't let these "financial consultants" get you down. You're an insurance peddler swinging a kit and working the street. There's strength in that and I'm not kidding. I wrote 7 apps this weekend doing just that and that's balls to the wall selling...Up the rebels!

 

[moonlightandmargaritas]

Most agents think more advances are a good thing. That's what takes a lot of them down financially.

Aw, c'mon Scott. Isn't this really a function of the quality of business you're/they're writing?

Won't "uplines" have a vested interest in this advice since they're concerned about chargebacks rolling up to them?

 

[The Gimp]

Major issues such as tax liens and open bankruptcies are the things that really hamper contracting.

 

[RonSmith1984]

I say to hell with good credit! It's none of their business...Production will save you!...Get appointed with Lincoln Heritage at 80%. The commission doesn't matter because everything you write will be approved. Get advanced at 75% and then hit the street. In two weeks you will be financially healthy. Don't let these "financial consultants" get you down. You're an insurance peddler swinging a kit and working the street. There's strength in that and I'm not kidding. I wrote 7 apps this weekend doing just that and that's balls to the wall selling...Up the rebels!

Thanks for the Tip.

I do have a pretty hefty savings built up so theres no need for me to rush into anything (like an 80% contract) to be financially healthy,
I do however have a company in mind that a few acquaintances work for and they start out at 100%. One of the requirements that this company has tho is to have "good credit" as well as being completely new to Final Expense, im guessing its because they want you to be trained from scratch to do it their way.

 

[jdeasy]

I say to hell with good credit! It's none of their business...Production will save you!...Get appointed with Lincoln Heritage at 80%. The commission doesn't matter because everything you write will be approved. Get advanced at 75% and then hit the street. In two weeks you will be financially healthy. Don't let these "financial consultants" get you down. You're an insurance peddler swinging a kit and working the street. There's strength in that and I'm not kidding. I wrote 7 apps this weekend doing just that and that's balls to the wall selling...Up the rebels!

Sadly this is the mindset of the agents that you are looking to recruit.