Credit Repair

WHAT IS CREDIT REPAIR?

Credit repair can be viewed as the physical therapy in the healing process of your finances.  When you experience severe financial distress and are unable to pay your bills, creditors report your delinquencies to credit bureaus. As a result, your credit score decreases.

Once you recovered from your financial hardship and make an effort to honored your financial obligations, your credit score will improve. In some cases they do; in other cases they don’t. This is when credit repair is important. During the credit repair process, our professionals will thoroughly analyze your credit report, help you identify discrepancies, and will assist you to have such errors removed. This is achieved by liaising with your creditors as well as credit bureaus, the end result being a true reflection of your financial stability.   

Common errors that can be found on your credit report include:

  • Incorrect spelling of your name
  • Wrong addressed
  • Liens
  • Bankruptcy
  • Lawsuits judgments

WHAT IS A CREDIT SCORE?

When you were in school, your report indicated your progress to move from one grade to the next. As an adult, your credit report functions as your report card. Unless you have won the lottery, your ability to achieve significant milestones in your adult life is contingent on your credit score. For example, if you wish to purchase a home, whether or not you will qualify for a home loan depends largely on the strength of your credit score.

The most widely used credit score is from a company called FICO. FICO will rate your score from 300 to 850. The higher your credit score is, the more likely you will be able to get loans. Generally, a credit score of 740 and higher is considered excellent and anything below 650 is considered poor.

WHAT IS YOUR CREDIT SCORE USED FOR?

Your credit score is an mirror image of your finances. In the past,  credit scores were used mostly banks and mortgage lenders. However, credit scores having become an increasingly popular yardstick of financial dependability  among landlords, employers and insurance firms.

HOW IS YOUR CREDIT SCORE CALCULATED?

The makers of the credit score, Fair Isaac do not disclose the exact formula used to calculate your credit score. However, they do provide the weights of the various criteria that they take into consideration: 35% payment history, 30% amount owed, 15% length of history, 10% new credit, 10% types of credit used.

Perhaps the most important factor that influences your credit score is your payment history. This is an indication of whether you have been financially responsible. The second most important factor is the amount owed. The closer you are to maxing out your credit, more likely you are to miss payments.

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