What You’ve Always Wanted to Know About Credit But Could Never Get A Straight Answer On.

What is a Credit Score ?

 A credit score is a two year projection of your ability to pay your bills.  Credit Scores generally range between 350 – 850.

The Credit Bureaus: There are three major credit bureaus commonly used in the United States today.

• Equifax
• Experian
• Trans Union

How A Credit Score is Calculated

• Payment History   35%
• Amount of Money Your Report Shows You Owe   30%
• Length of Your Credit History  15%
• Types of Credit Currently Use  10%
• New Credit and Inquiries  10%

Little Known Information About Collections

• Before an account is charged off it will be held for six months by the original creditor.
• When a company charges off an account they write a large percentage of the debt straight off the top of their taxes.
• The account is purchased by a collection company.
• The original company has collected a large percentage of their money.

Consequences of Paying Collections

• Immediately Lowers Credit Score
• Re-Aging – Makes the Old Account Brand New
• In Most Cases Restarts the 7 Years Account Can Continue to Haunt You

3 Reasons to Check Your Credit

• Know Your Scores Before you Purchase
• Check the Accuracy of all Information.     
• 79% of all credit reports have inaccuracies. 
• Identity Theft: Make sure you are not a victim!

Sections of a Credit Report

• Personal Information 
• Credit Summary 
• Credit Scores
• Account Information 
• Inquiries

The Three Basic Types of Accounts in Your Credit Report

• Mortgage Accounts
• Installment Accounts
• Revolving Accounts

The Four Important Dates

• Open Date – Date the account was opened.
• Reporting Date – Last time the account information was reported to the bureaus.
• Date of Last Activity – The last payment or activity on the account.
• Date of First Delinquency – The date when an account begins to go delinquent.

What to Do When Information is Wrong

• Look through your reports for inaccuracies and accounts that you have questions about.
• Consult a professional.

There Are Always Multiple Solutions to Any Situation!

• Credit Repair: Repairing the negative items on your credit reports.  
  
• Positive Impact Assessments 
  
• Consumer Advocacy    
  
• Identity Theft Program: Helping individuals who have suffered Identity Theft remove fraudulent items from their credit reports.

Credit Repair

• Credit Repair is a very intense set of audits.
• On average we remove 70 – 90% of everything negative on your report.
• Collections
• Charge Offs
• Late Payments
• Liens and Judgments

Positive Impact Assessments