(Part 2 in a 3-Part Series)
In the United States, consumer credit scores are critical for anyone who would like to have the option of financing large purchases such as a home, car or major household appliance. But low credit scores can place large items out of reach for the majority of Americans, many of whom do not have immediate access to large sums of cash. What can you do if your finances take a hit and ultimately negatively impact your credit scores?Last week, we covered some of the most frequently asked questions about credit repair. This week, we’d like to discuss a few more.
How are credit scores calculated?
Although each agency applies different calculations, this is roughly the method most firms employ:
- 35% Payment History
- 30% Account Utilization (balances being carried over)
- 15% Length of Credit History
- 10% Types of Credit (a mixture is best)
- 10% Inquiries (only first 10 count)
What is the range of credit score?
Credit scores range from 350 to 850 points. When you reach a score of 580, you will likely start qualifying for loans, although the interest rates might be high. If you have a score that’s more than 680 points, you can usually qualify for a much lower interest rate.
How can bad credit be removed from any given report?
At Credit Repair by Attorney, the first step we take on behalf of our clients is to draft letters on their behalf to challenge creditors and credit bureaus. We use the Fair Credit Reporting Act and/or The Fair Credit Billing Act to help our clients improve their credit. While it’s true that you can do this on your own, doing so is much like representing yourself in a court of law. If you are in a car accident, you have the right to sue the opposing party for damages and to represent yourself. But would you really do so if you want to win? Not likely. You would probably (wisely) opt to hire an attorney who handles such matters on a daily basis, so he or she knows instinctively what to do when problems arise.
We represent our clients to credit bureaus hundreds of times each month. So we know exactly what to say to get great results. A disputed credit listing must be accurately reported and verifiable if it is to remain on any given credit report. If the credit listing is inaccurate or unverifiable, it must be deleted. Our extensive knowledge of the Fair Credit Reporting Act prepares us to properly dispute those credit items that can easily be removed. Thankfully, virtually anything on your credit report can be legally removed…if you know what to do.
Is it possible to remove inquiries from a report?
Yes, it is possible to remove inquiries. We do this for our clients for a nominal fee.
To correct credit, should a person pay off his or her debt?
If you are actively trying to repair your credit report, you should repay only those debts that are credit card related. Try get revolving balances to 50% or less of credit limit. Paying collections actually lowers scores and brings old debts to the top of the report since they are recent.
Which balances should I carry on my credit card to maximize my credit scores?
Try to keep all of your credit cards at 50% of available credit, if at all possible. This is especially important for people who are planning on applying for credit in the near future.
Check our blog post next week for part three in our three-part series, which covers frequently asked questions about credit repair. At Credit Repair by Attorney, located in Rancho Cucamonga, California, we serve clients in Los Angeles, Orange, Riverside, San Bernardino and San Diego Counties as well as Arizona and Nevada. Our team of highly qualified and experienced attorneys is ready to provide fast and effective solutions for your bad credit. For a free consultation of your credit situation, call us today @ 909-944-3222.
CREDIT REPAIR BY ATTORNEY 