Credit Info

A credit score is a numerical representation of your creditworthiness, indicating how likely you are to repay borrowed money on time. Lenders use this to assess risk when you apply for loans, credit cards, or other financial products. Credit scores are calculated based on information in your credit report, typically using models like FICO or Vantage Scores. 

The key factors include the following:

• Payment History = 35%: Timeliness of payments on credit accounts or how you pay your bills; if they are paid on time or in default. 
• Amounts Owed/Credit Utilization = 30%: Total debt and credit utilization rate or the balances versus their credit limits on open revolving accounts (credit/retail/bank cards). 
• Length of Credit History = 15%: How long you've had credit accounts and when you first established your credit accounts. 
• Credit Mix = 10%: Variety of credit types or mix of credit such as revolving, installment, mortgage or other. 
• New Credit = 10%: Recent applications and new accounts acquired to include hard inquiries. 

Lenders analyze these factors to determine your credit scores, which generally ranges from 300 to 850. A higher credit score indicates better credit health. 

• Late Payments: Late payments can remain on your credit report for up to 7 years from the date of the first missed payment. 
• Charge-Offs: Accounts that were written off due to non-payment can stay on your credit report for up to 7 years from the date of the original delinquency that led to the charge-off. 
• Collections: Accounts sent to collections typically remain on your credit report for up to 7 years from the date of the original delinquency. 
• Bankruptcies: Chapter 7 can remain on your credit report for 10 years from the date it was filed and Chapter 13 can remain on your report for 7 years from the filing date. 
• Foreclosures: A foreclosure can stay on your credit report for 7 years from the date it was filed. 
• Judgments: A judgment can remain on a credit report for 7 years from the date it was filed. 

It is worth noting that while negative entries can affect your credit scores, their impact may lessen over time, especially if you manage other aspects of your credit responsibly. 

Additionally, some older items may drop off your report automatically, and you have the right to request that inaccurate information be either corrected or removed. 

The top credit factors that can negatively impact your credit score include: 

• Late or Missed Payments: Missing payments or paying late can significantly lower your scores. 
• High Credit Utilization: Using a large percentage of your available credit (generally above 30%) can hurt your scores. 
• Recent Credit Inquiries: Applying for multiple new credit accounts in a short period can suggest financial distress. 
• Many New Accounts: Opening several new credit accounts at once can be viewed as risky. 
• Charge-Offs and Collections: Accounts that have been charged off or sent to collections indicate payment problems. 
• Auto or Mortgage Repossession: Losing collateral due to missed payments negatively impacts your score. 
• Short Credit History: Having a limited credit history can make it harder to establish a high score. 
• Public Records: Bankruptcies, liens, or judgments can severely lower your creditworthiness. Addressing these factors by paying bills on time, reducing debt, and limiting new credit applications can help improve your score. 

• Pay your bills on time 
• Keep your credit utilization low 
• Avoid opening multiple new accounts at once 
• Check your credit reports regularly for errors 
• Don't close accounts, especially older revolving accounts (credit/retail/bank cards)
• Don't apply for too much credit in a short time, top credit achievers only apply for credit twice a year
• Have various types of credit accounts or a mix of credit, such as 1-2 revolving accounts, 1 mortgage or other, and 1 installment account (auto, personal, student or recreational such as ATV, RV, jet ski, boat, golf cart, lawn equipment etc.)
• Be patient, as credit improvement takes time 

During the rebuilding stages, it's important that you check your credit reports every few months for inaccurate information that may damage your credit. Common errors to look for include: 

• Accounts that are not yours 
• Inaccurate balances
• Wrong date of last activity
• Incorrect credit limit listed 
• Unauthorized inquiries 
• Incorrect personal information 
• Inaccurate amounts listed 
• Wrong account numbers
• Wrong original creditors
• Incorrect charge-off dates 
• Returned negative accounts
• New addresses appearing 
• New inquiries appearing 

Our credit repair services are designed to help you with the following: 

• Review and identify the negative and inaccurate items affecting your scores
• Dispute the inaccurate, incomplete, outdated, duplicated or unverifiable information reporting on your credit report 
• Help to remove or correct late payments, collections, charge-offs, repossessions, foreclosures, and bankruptcies from your credit report 
• Develop a personalized plan to boost your credit scores and keep them maintained afterwards 
• Educate you on responsible credit habit with daily nurturing emails and tips 
• Monitor your credit reports, credit scores, and accounts monthly
• Provide a progress report for any progress that occurs
• Notify you when disputes are completed and the items challenged 
• Provide 24/7 account to track the dispute progress live, receive monthly updates, daily nurturing emails, and the ability to send us your results quickly