Are You A Candidate for Credit Report Repair
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A credit report is an outline of your past credit history and the KEY to your future credit repair. Your credit report will provide information on all of your credit activities, including any credit card debts and loans in your name and all activities on them. If you have ever been late on a credit card payment, been evicted or had a collection agency contact you, chances are high that your credit score will reflect that. Numerous instances like that will damage your credit report and leave you in need of bad credit report repair services.
What’s On A Credit Report?
Your credit report contains:
- How long each credit account has been open;
- If you pay the bills on time;
- How much credit you have used on each account;
- How often you have applied for new or additional credit;
- If creditors have had to pursue payment from you through collection agencies;
- How often you have been late on your payments; and
- When or if you have ever used a credit counseling service.
Improving Your Bad Credit History Through Credit Repair
A credit report generally covers your entire credit history, or at least the most recent seven years. However, if you have filed for personal bankruptcy, that stays on your credit report for ten years. Information is usually updated monthly by each of your creditors, including individual credit card companies, so that the information is accurate and current. The three major credit bureaus -- Equifax, Experian and Trans Union -- collect your personal credit data and compile your credit report. You can improve some of your bad credit history through credit repair. Online credit repair services like Lexington Law Firm can help you get your bad credit rating back on track by working with all three bureaus. If you are currently harming your credit with crippling debts, before you seek help with repairing your credit, sign up for a free debt consultation to prevent further damage.
Who Can See My Credit Report?
A lender or credit company will most likely check your credit report whenever you apply for a loan or mortgage or a new credit card. Not everyone can request a copy of your credit report, but those who can include:
- Any lender considering lending you funds, including credit card and mortgage companies;
- Potential landlords;
- Government agencies;
- Any insurance company considering you for a policy;
- Companies considering you for employment or promotion; and
- Any court that has issued a subpoena for your records.
Obtaining a Copy or Your Credit Report
If you would like to see your credit report or credit score, you can request copies by contacting each of the credit bureaus and paying a small fee for the information. In general, a one-time request for the information won't damage your score and it can give you a clearer picture of where you stand and what areas you need to address to begin repairing your credit if need be. Free credit report information can be obtained at sites like My FICO and Online Credit Info.
What Your Credit Report Will Show Before Credit Repair
Your Payment History - Each lender will weigh the information in your credit report differently. However, your payment history is almost always significant. If you consistently pay your bills on time, you will be looked on favorably. If your credit report shows a long list of late payments, late fees and accounts that have been turned over to collection agencies, this will be a red flag to anyone reviewing your credit report.
Your Outstanding Debt – Your credit report’s next most important information is usually your outstanding debt. If your credit report shows that you owe almost as much money as your credit limit, many lenders will not be inclined to offer more credit in case you get into a financial bind and they are left holding the bag. This may prevent you from maxing out your credit cards and simply moving on to another account.
Application Habits - Do you continually apply for credit cards and open new accounts? While having some accounts open and making regular payments does improve your credit report, having too many may actually have the opposite effect. If your credit report shows that you are incurring too much debt, that may make lenders hesitant. If you have a few major credit cards and a store card or two, keep these open and always pay on time, preferably more than the minimum required, to keep your credit report as clean as possible.
What is the difference between a Credit Report and a Credit Score, and can either be fixed through Credit Repair?
Credit repair can help improve both your credit report and your credit score, or credit rating, as it is also called. Your credit score is a number value assigned to your financial status based on the data in your actual credit report. The value ranges on a scale from a low of 300 to a high of 850. The lower your score, the worse your credit risk. Each company that looks at your FICO score will have their own standard for what they consider an acceptable credit risk. This can vary depending on the size of a loan being considered as well as other factors. In general, however, a credit score below 400 means you will have a difficult time getting any kind of credit at all. A credit rating of 750 or higher is considered optimal. A score that is above 800 means you have better credit than 90% of people, while a credit score below 550 indicates worse credit than 90% of the population. The average credit score in the United States, give or take about 25 points, is usually around 700.
If you find that your bad credit rating is preventing you from opening credit card accounts, obtaining a loan or even renting an apartment, sign up to speak with someone about taking steps to repair your credit report and remove bad credit.
How is my Credit Score developed and will it change with Credit Repair?
Each credit reporting bureau will figure a credit score slightly differently, so your score will vary slightly from one bureau to another. However, the general guidelines are the same and follow a mathematical formula known as the FICO score. The acronym stands for "Fair, Isaac and Co.," the company that developed the standard formula used today to determine a score.
Calculating Credit Scores
When a credit score is developed, the different types of information used to come up with the score are weighed differently; some things count more than others do. However, the general breakdown is usually something like this: 35% payment history, 30% how much you currently owe, 15% length of credit history, 10% how much new credit you have and 10% the types of credit you have. These are just general guidelines; each credit bureau will use slightly different formulas, but most will be close to these.
Credit Reports and Scores Vary Among Credit Bureaus
The three major credit bureaus may also end up with different scores because each bureau may have different information on you based on how accurate and up-to-date their records are. Each credit company also uses their own name for their final credit scores. All start with the FICO formula, but each calls the score by its own name (Equifax Beacon, Experian Fair Isaac Risk Model and TransUnion Empirica). In order to help navigate the confusing waters when you are trying to repair bad credit, credit repair advisors like Lexington Law Firm are available to help.
How Creditors View Your Credit Score
Once your FICO score or credit score is turned over to a creditor, each company or lender can interpret the numbers differently. Each creditor has their own guidelines based on a variety of factors besides your credit score alone. They may have broader or narrower guidelines, and some, called Bad Credit Lenders, even specialize in lending to high-risk clients. They may place less emphasis on credit scores than they do on current employment and income. If you own your home, you may be considered a better risk than a renter; renters are seen as more transient. The longer you have been employed at one place, the better a risk you are. Lenders like stability and reliability. Ultimately, remember that your credit score is not carved in stone. Not only does your credit report not matter in the same way to everyone, but you can even remove bad credit with online credit repair at sites like Credit Repair and creditrepaircounseling.com.
Can I Repair My Credit Score through Prompt Bill and Credit Card Debt Payment?
Yes. Changing credit habits like paying bills on time and reducing your overall debt will definitely be reflected on your credit score. Some of these changes will be reflected on your credit report almost immediately. However, two months of good, on-time payments will not balance out years of late payments or defaults; but it can make a dent in improving your credit report, so be assured that every step you take will make a difference.
To get your bad credit score moving in the other direction, sign up to speak with someone about taking steps to repair your credit report. For more information on Free Credit Reports, Credit Scores or Credit Repair, visit:
