A credit score is a number generated by a mathematical formula that is meant to predict credit worthiness. 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. Therefore, having a high credit score can save many thousands of dollars over the life of your mortgage, auto loan, or credit card.
Pay all your bills on time, every time. This includes mortgage, auto payments, installments loans and all your revolving lines of credit like credit cards.
Check your credit report at least once a year. You can find out how to challenge bad information on your credit report here.
annualcreditreport.com, call 877.322.8228 You can get your free annual reports, but they do not have scores.
Never go above 30% on your credit limit. Example: Credit limit is $10K; never go above $3K
Keep your accounts open as long as possible – Even if you are no longer charging on the card. The best policy is to keep those unused accounts open, blow the dust off your card every few months to make a small purchase, and then pay it off. How long each of your accounts have been active is a major factor in your credit score.
A credit score is a 3-digit number created by an algorithm by a company such as FICO and Vantage to measure your credit worthiness and the risk in lending to you. Creditors and lenders use this credit score to make the decision on whether to open a line of credit with you.
Every credit report is unique, just like a fingerprint, so we can’t perfectly predict how long it will take sometimes we see 10 removals, sometimes we see 1 removal, sometimes everything gets removes and sometimes nothing gets removed and we must resort to using credit building techniques to help you rebuild your credit.
A good credit score range is 680 – 699. We like to see our clients reach over 700 with the top 3 credit bureaus.
Stop applying for credit. Do not close any accounts. Pay your credit cards down to below 30% of the available credit line, even if you pay the balance off in full each month. Pay your bills on time.
Yes, student loans can be removed from a client’s credit report. Even though they are removed from credit reports there still in a system called caivrs. So still need to be taken care of through a default resolution program before applying for any federal loans such as an FHA loan or a USDA loan.
You Need a Budget
Your credit score lets lenders know quickly how much of a credit risk you are. Based on this credit score, lenders decide whether to trust you financially and/or give you better rates when you apply for a loan. Apartment managers can use your credit score to decide whether you can be trusted to pay your rent on time. Employers can use your credit score to decide whether you can be trusted in a high-responsibility job that requires you to handle money.
Yes! Of course, you can do it on your own. But if you find yourself overwhelm, much as a mom who finds herself overwhelmed cleaning her home and hires a cleaning company; we are here to help!
When you effectively agree with a creditor to pay back a portion of the loan balance; allowing the balance of the debt to be forgiven. Make sure to get the agreement in writing before actually paying off the settlement.
Visit our Facebook group (Credit Score Improvement) to have access to other questions being answered. This group is committed to help clients get out of the Credit Hole to Be Whole!