CLIENT INFORMATION AND RECOMMENDATIONS
As your credit specialist, our most important job is to review your credit history reports with you and to begin the process of disputing negative inaccurate items on your reports. Our next important job is to give you recommendations to follow, which will help you to speed up the process, achieve a higher score and keep it. While we do our part, please read the following information and follow our steps and your score will start to improve quickly.
Credit repair is 100% legal. It works because of a law called “The Fair Credit Reporting Act.” The FCRA gives you the right to dispute any item on your credit report. If that item cannot be verified within a reasonable time (usually 30 days) it must be removed. Even accurate negative items can often be removed or negotiated away. This law is the basis of all credit repair and the foundation of our business.
Your credit payment history and profile is the makeup of a credit report. These files or reports are maintained and sold by “consumer reporting agencies.” One type of consumer reporting agency is commonly known as a credit bureau. The largest three credit bureaus are Transunion, Equifax, and Experian. You have a credit record with these agencies if you have ever applied for a credit or charge account, a personal loan, or a job. Your credit record contains information about your income, debts, and credit payment history. It also indicates whether you have defaulted on any debts, have any outstanding judgments or child support, and whether or not you have any bankruptcies.
WHAT IS A CREDIT SCORE?
A credit score is a number generated by a mathematical formula that is meant to predict creditworthiness. Credit scores range from 300-850. The higher your score is, the more likely you are to get a loan. The lower your score is, the less likely you are to get a loan. If you have a low credit score and you do manage to get approved for credit, then your interest rate will be much higher than someone who had a good credit score and borrowed money. So, basically, having a high credit score can save many thousands of dollars over the life of your mortgage, auto loan, or credit card.
CREDIT SCORE RANGES AND THEIR MEANING
800 and Higher (Excellent)
With a credit score in this range no lender will ever disapprove your loan application. Additionally, the APR (Annual Percentage Rate) on your credit cards will be the lowest possible. You’ll be treated as royalty. Achieving this excellent credit rating not only requires financial knowledge and discipline and, but also a good credit history. Generally speaking, to achieve this excellent rating you must also use a substantial amount of credit on an ongoing monthly basis and always repay it ahead of time.
700 – 799 (Very Good)
27% of the United States population belongs to this credit score range. With this credit score range you will enjoy good rates and approved for nearly any type of credit loan or personal loan, whether unsecured or secured.
680 – 699 (Good) & 620 -679 (OK or Fair)
This range is the average credit score. In this range approvals are practically guaranteed but the interest rates might be marginally higher. If you’re thinking about a long-term loan such as a mortgage, try working to increase your credit score higher than 720 and you will be rewarded for your efforts – your long-term savings will be noticeable.
620 – 679 (OK or Fair)
Depending on what kind of loan or credit you are applying for and your credit history, you might find that the rates you are quoted aren’t best. That doesn’t mean that you won’t be approved but, certain restrictions will apply to the loan’s terms.
580 – 619 (Poor)
With a poor credit rating, you can still get an unsecured personal loan and even a mortgage, but, the terms and interest rates won’t be very appealing. You’ll be required to pay more over a longer period of time because of the high interest rates.
500 – 579 (Bad)
With a score in this range you can get a loan but nothing even close to what you expect it to be. Some people with bad credit apply for loans to consolidate debt in search for a fresh start. However, if you decide to do that then proceed cautiously. With a 500 credit score you need to make sure that you don’t default on payments or you’ll be making your situation worse and might head towards bankruptcy, which is not what you want.
499 and Lower (Very Bad)
If this is your score range you need serious and professional assistance with how you handle your credit. You’re making too many credit blunders and they will only get worse if you don’t take positive action. If you are thinking of a loan then keep in mind that if you do find a sub-prime lender (which won’t be easy), the rates will be very high and the terms will be very strict. We recommend that you fix your credit and only then move on to applying for a loan.
HOW DO CREDIT BUREAUS DETERMINE MY CREDIT SCORE?
35% – Payment History
30% – Debt Ratio
15% – Length of Credit History
10% – Types of Credit
10% – Number of Credit Inquiries
These percentages show how important each category is in determining your Credit score. We will help you to remove negative items from your payment history. We will also show you how to maximize your debt ratio score, even if paying off credit cards is not an option.
WHAT IS THE SECRET TO A HIGH CREDIT SCORE?
Always pay your bills on time!
Don’t close old accounts!
Don’t apply for any new credit!
Don’t ever use more than 30% of your available credit on each credit card!