In recent years, a credit score has become vastly more important. Not only does it determine your eligibility for credit cards, loans, mortgages and rent, but now employers consider credit scores when hiring. For something that has become so essential, it is very easy to lose track of your credit score. And without taking the proper steps, it can take years to undo these minor problems.
What is a Credit Score?
A numerical expression that allows lenders to judge your creditworthiness. It tells how likely you are to repay a loan in a timely matter.
What is Credit Repair?
Credit repair is the process of analyzing a credit score (Ex. Fico), identifying factors that are harming your score, and putting a plan into action to fix these issues.
The Procedure of Credit Repair
- We will analyze your individual situation to find the best way to improve your score.
- We will put together a plan to best lower your credit utilization.
- We will fight any false hard inquiries on your report.
- We will work with credit agencies to forgive your late payments and form a better payment system that fits your needs.
How can you Improve your Credit?
- Repayment history. Make sure you make all loan payments on time and for the appropriate amount. Even one late payment can affect your score for a period of time.
- Current debt. Your current debt is compared to your total available credit, and if that ratio is high, it can negatively impact your credit score. Try to avoid carrying large balances and keep debt levels to under 30% as a rule of thumb. When possible using less than 10% of your available debt will help maximize your score.
- Credit account age. The longer a credit account has been open and in good standing, the better this reflects on your credit score.
- Credit type. A home loan has a more positive impact on your credit score than a credit account with some financing companies. Check on the effects before signing up for that “no-interest for a year” financing plan.
- New credit. Try to limit the number of times you apply for credit. While not all views by prospective creditors are viewed negatively, frequent credit applications will depress your score.