What is credit and why do I need it?

Credit is simply your privilege to borrow money and repay it at a later date

You use "credit" every day when you ask someone to do a favor. Take a second to imagine your life without credit. Really think about it.

1. How long will it take you to achieve your goals?

2. How long will it take you to save up and pay in cash for the 3 bedroom 2 bath dream home in your favorite part of town?

3. How long will it take you to save up and pay in cash for your next car?

What does good credit look like?

A FICO score of 670 or above is considered to be satisfactory, while a score of 800 or greater is considered extraordinary. In comparison, a FICO score of 580–669 is considered average, while a score of 579 or below is deemed bad. Most credit scores fall between the range of 600 to 750.

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Our process of credit repair

Credit repair is a process that involves looking over your credit report and disputing any mistakes you find. Listed below are the things we do to fix your credit:

Examine the credit report

We get a copy of your credit report and come up with a strategy to remove any negative items.

Challenge inaccuracies with the credit reporting agencies

Describe what is questionable as well as incorrect, in writing; include the credit reporting agency's dispute form (if there is one), copies of supporting documents, and maintain records of all correspondence.

Dispute inaccuracies with the institution that produced the data

Not only do we dispute with the CRA's in reference any inaccuracy on your account, but we also contact the data furnisher as well.

It may take between 30 and 45 days for a credit dispute investigation to finalize after you've filed a dispute with a credit reporting agency or data furnisher. The credit reporting agency and the data provider will review your documentation and make a determination on the dispute's legitimacy during that period.

FICO Score vs VantageScore

FICO Score and VantageScore are the two most often used credit rating formulas. They both utilize the 300-850 score range and examine much of the same data, albeit the VantageScore categories differ significantly from those used by FICO (for example, 665 is deemed "fair" on the FICO scale but "excellent" on the VantageScore scale). Your financial history, including credit utilization and current requests, is used to calculate your credit score.

FICO and VantageScore both give your main score, which is a projection of your capacity to make debt payments based on your prior behavior. You may, however, obtain an industry-specific FICO score for something like a mortgage. These typically vary from 250 to 900 and predict your likelihood of repaying a certain sort of debt, such as credit card debt and other loans.

The FICO score was created to assist lenders in determining who was most likely to fail on a loan. Additionally, FICO generates distinct ratings for auto loans, credit cards, and mortgages. FICO Score version 10 is the most current, however version 8 is the most generally utilized.

VantageScore was founded when the three main credit reporting companies—Equifax, Experian, and TransUnion—joined forces to form VantageScore Solutions LLC . VantageScore was created to provide consistency among the three credit reporting bureaus' credit scores.

FICO prioritizes payment history, but VantageScore's current edition prioritizes overall credit utilization and balances.

The impact on your quality of life could be enormous!

Your credit score is a three-digit number which represents how good you are at paying back and managing loans.

To put it another way, it is a byproduct of your financial behavior.

Experian, TransUnion, and Equifax will all provide you a different credit score.

The reason your scores vary is because not all of your creditors deal with all 3 bureaus!

Even if you get your credit score directly from the credit bureaus it is not the actual score, that's why it's more important to know what is on your credit report vs the actual score.

Why? The information on the credit report is what makes up the score!

However the credit report is created by the data within each credit bureau.

The FICO model has a credit scale ranging from 300-850

You could gain or lose 550 points.

FICO Score
Breakdown

Payment History, how well you pay on time is 35% or 192.5 points of your score.

Credit Utilization, the amounts owed, is 30% or 165 points of your score.

Credit Age, how long have you had credit, is 15% or 82.5 points of your score.

Inquiries, new credit, is 10% or 55 points of your credit score.

Credit Mix, types of credit, is 10 % or 55 points of your score.

Credit Utilization

Payment History

Credit Mix

30%

35%

10%

Credit Age

15%

Inquiries

10%

A person does not have one credit score. They have many, and they change all the time. There is more than one credit-scoring system. In fact, currently, more than 100 credit-scoring models are being marketed to lenders. The best-known score, however, is the FICO, and a person is more likely to be affected by their FICO score than any other.