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Repair Your Credit? What You Need to Understand!

Updated: Apr 13


Why It's so Hard to Fix Credit Report Errors


You are here, confused and trying to figure the best solution forward. There are many credit repair sources on the internet as well as locally of where you are. When working with a credit specialist, your most important job is to review your credit report and the information contain in that report. begin process of disputing negative inaccurate items on your reports. Our next important job is to provide recommendations to follow, which will help you to speed up the process, achieve a higher score and keep it. While we do our part, please read the following information and follow our steps and your score will start to improve quickly.


How does credit repair work?


Credit repair is 100% legal. It works because of a law called “The Fair Credit Reporting Act.” The FCRA gives you the right to dispute any item on your credit report. If that item cannot be verified within a reasonable time (usually 30 days) it must be removed. According to a FTC consumer report that 1 in 5 Americans have errors on their credit report.


Ask these questions when hiring a professional credit repair agency?


1. Is the professional firm accredited credit repair license?

2. Is the credit repair agency Registered & Bonded with Secretary of State? 3. What are the fees and payment structure?

4. What are their disclosures and Refund policy?

5. What is the Cancellation Policy?

6. What are their current client say about their service? (Google Reviews / Yelp) etc...


Do I have a Right to know what's in my report?


Of course you do. By law, the agencies must give you a free report annually. However those free reports do not contain scores. For credit repair scores we recommend an inexpensive credit monitoring service.


Credit Report Basics


Of course you do. By law, the agencies must give you a free report annually. However those free reports do not contain scores. For credit repair scores we recommend an inexpensive credit monitoring service.


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. So, basically, having a high credit score can save many thousands of dollars over the life of your mortgage, auto loan, or credit card.


Credit Score Ranges and Their Meaning


How do Credit Bureaus determine my credit score?

35% - Payment History​

30% - Debt Ratio​

15% - Length of Credit History​

10% - Types of Credit​

10% - Number of Credit Inquiries​


The percentages in this chart show how important each of the categories is in determining your Credit score. We will help you to remove negative items from your payment history. We will also show you how to maximize your debt ratio score, even if paying off credit cards is not an option.


What type of information do credit bureaus collect and sell?


1.  Identification and employment information Your name, birth date, Social Security number, employer, and spouse’s name are routinely recorded in your credit report. They may also provide information about your employment history, home ownership, income, and previous address, if a creditor requests this type of information.

2.  Public record information

Events that are a matter of public record, such as bankruptcies, foreclosures, or tax liens, may appear in your report.


3.  Inquiries CRAs must maintain a record of all creditors who have asked for your credit history within the past year. It is generally beneficial to keep the number of inquires as low as possible.

4.   Payment history Your accounts with different creditors are listed, along with the balances, high balances, and outstanding balances. Related events, such as referral of an overdue account to a collection agency, charge off accounts or other delinquencies may also be noted.


800 and Higher (Excellent) 

With a credit score in this range no lender will ever disapprove your loan application. Additionally, the APR (Annual Percentage Rate) on your credit cards will be the lowest possible. You’ll be treated as royalty. Achieving this excellent credit rating not only requires financial knowledge and discipline and, but also a good credit history. Generally speaking, to achieve this excellent rating you must also use a substantial amount of credit on an ongoing monthly basis and always repay it ahead of time.


700 – 799 (Very Good)

27% of the United States population belongs to this credit score range. With this credit score range you will enjoy good rates and approved for nearly any type of credit loan or personal loan, whether unsecured or secured.


680 – 699 (Good) 

This range is the average credit score. In this range approvals are practically guaranteed but the interest rates might be marginally higher. If you’re thinking about a long term loan such as a mortgage, try working to increase your credit score higher than 720 and you will be rewarded for your efforts – your long term savings will be noticeable.

620 -679 (OK or Fair)

Depending on what kind of loan or credit you are applying for and your credit history, you might find that the rates you are quoted aren’t best. That doesn’t mean that you won’t be approved but, certain restrictions will apply to the loan’s terms.

580 – 619 (Poor) 

With a poor credit rating you can still get an unsecured personal loan and even a mortgage, but, the terms and interest rates won’t be very appealing. You’ll be required to pay more over a longer period of time because of the high interest rates.

500 – 579 (Bad) 

With a score in this range you can get a loan but nothing even close to what you expect it to be. Some people with bad credit apply for loans to consolidate debt in search for a fresh start. However, if you decide to do that then proceed cautiously. With a 500 credit score you need to make sure that you don’t default on payments or you’ll be making your situation worse and might head towards bankruptcy, which is not what you want.

499 and Lower (Very Bad) 

If this is your score range you need serious and professional assistance with how you handle your credit. You’re making too many credit blunders and they will only get worse if you don’t take positive action. If you are thinking of a loan then keep in mind that if you do find a sub-prime lender (which won’t be easy), the rates will be very high and the terms will be very strict. We recommend that you fix your credit and only then move on to applying for a loan.





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