What You’ve Always Wanted to Know About Credit But Could Never Get A Straight Answer On.
All your questions answered on all things credit score.
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