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Family at a Beach

Credit Education

What is a Credit Score?

A credit score is a number generated by a mathematical formula that is meant to predict credit worthiness. Credit scores range from 300-850. The higher your score is, the more likely you are to get a loan. The lower your score is, the less likely you are to get a loan. If you have a low credit score and you do manage to get approved for credit then your interest rate will be much higher than someone who had a good credit score and borrowed money. Therefore, having a high credit score can save many thousands of dollars over the life of your mortgage, auto loan, or credit card.

Credit Card

What affects your Credit Score?

35% - Payment History
30% - Debt Ratio
15% - Length of Credit History
10% - Types of Credit
10% - Number of Credit Inquiries

What is a Collection Account? 

After 180 days delinquent, the original creditor can transfer debt to a third party bill collector, known as Collection Agency.  Common examples of Certain Collection Agencies would be Jefferson Capital Systems, Portfolio Recovery, Midland Credit Management, National Credit Adjuster. LVNV Funding, Resurgent Capital, Caine Weiner, IC System and more.  If you received a letter from these collection agencies you have 30 days initially to respond or the account can be added to your credit report. If you received letters from these companies or any of these accounts listed on your credit report, give us a call.

How to Increase your credit score? 

  • Pay all of your bills on time, every time. This includes your utility bills, mortgage and auto payments, and all of your revolving lines of credit like credit cards.  One late payment can damage your credit score by 50 PTs or more.  

  • Pay off your credit cards.  Your Credit to Debt ratio should be 30% and below.  It's best to keep to charge cards and pay right off.

  • Challenge negative, inaccurate items that can be damaging to your credit score.  (this is what we do and do very well!)

  • Keep your accounts open as long as possible – Even if you are no longer charging on the card. The best policy is to keep those unused accounts open.  Every few months make an affordable purchase, then pay it off. How long each of your accounts have been active is a major factor in your credit score.

  • Limit the amount of inquiries and new accounts open. 

  • Obtain variety of credit to maintain for a long period of time, like Auto, Unsecured Loan and Credit Cards.  

  • Remember that this all takes time – Following the above steps consistently over a long period of time will increase your credit score and allow you to qualify for better loans and lower interest rates. Repairing your credit score does not happen overnight, so if you do these things for a few months and do not see a large increase in your score, do not give up. They are all habits that you will want to maintain throughout your life, as they will help you to keep your finances and lines of credit under control.

How long does our Repair process take? 

​Most of our clients see initial progress in the first 1-2 months and average 6/8 months in the program.  In order to give you a better estimated time of completion, we must see your credit report.  Click here to get a Credit Analysis

Information that cannot be in a credit report:

  • Medical information (unless you provide consent)

  • Notice of bankruptcy (Chapter 11) more than ten years old

  • Debts (including delinquent child support payments) more than seven years old

  • Age, marital status, or race (if requested from a current or prospective employer)

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