1. Q. What else can I do to improve my credit rating? |
| A. Pay your bills on time. Late payments and collections can have a major negative impact on your Beacon score |
| • Pay off debt, do not just move it around. The most effective way to improve your credit score is by paying down your revolving credit. It is not a good idea to transfer balances from one credit card to the next, the interest is usually higher and in the end, you end up paying more. |
| • If you are in trouble making payments, contact your creditors immediately. Discuss your situation with them, most of the time they are willing to work with you, some sort of arrangement can be agreed upon. This will not improve your score, but it is a preventative measure that will save you from delinquent marks on your credit reports. |
| • Get current and stay current. The longer you pay your bills on time, the better. |
| • Manage your credit cards responsibly. Having credit cards and installment loans will improve your score; by managing them responsibly, you are displaying to banks and financing companies that you are debt savvy. |
| • Re-establish your credit. Opening new accounts and managing them responsibly will improve your credit score. |
| • Do not apply for a bunch of department store cards. This increases your debt ratio and also counts against you, as an inquiry (inquiries lower your score 2-5pts) |
| • Shop for rates and financing within a goal-oriented period of time. It’s okay to request and check your own credit report. This will not affect your score. Having other financial institutions pull it will damage the score. |
| • Don’t close unused credit cards, this short term strategy will not raise your score |
| • Do not open a lot of new accounts too rapidly. These new accounts will lower your average account age. Rapid account building can look risky if you are a new credit user. |
2. Q What factors determine my Credit Score? |
A. Your credit report is a very critical document. The information contained within it and the credit score derived from the information can predict your ability to obtain credit cards, mortgage loans, insurance policies, auto loans or possibly a job. Your credit score is very important in determining whether you are extended credit and at what rate. The Most prominent of a number of companies, have used complex formulas to analyze the information contained in individual credit reporting agency files to arrive at a number or score that evaluates a person’s creditworthiness. These companies protected their secret formula for credit scoring believing that if people knew how scoring was done, they would try to manipulate the system. Since then, they have revealed the formula allowing the consumer a clear picture of what they are evaluated on. |
There is a formula that determines your credit score. |
35% = Your record of timely payments of loan accounts |
One of the factors in determining your credit score is the total amount of debt that you carry on your credit cards divided by the total amount of your available credit lines on those cards. The lower the resulting fraction, the better your credit score. |
3. Q Is credit repair LEGAL? |
| A. Yes!, Not only is it 100% legal, It is your RIGHT. You are furnished, under the Fair Credit Reporting Act, the right, to challenge any inaccurate, incomplete, erroneous and dated information. The FCRA empowers consumers with the right to disputes the credit reporting agencies inaccurate, incomplete, erroneous and/or obsolete information. Pursuant to the FCRA, the credit reporting agencies must investigate consumer disputes and contact the furnisher of erroneous information in order to verify the accuracy of the trade line. The furnisher must “verify” or “update” the trade line so that it becomes accurate. If the trade line is “unverifiable”, it must be deleted. |
4. Q What is Credit Repair? |
A . Credit Repair is the process of restoring your credit trade lines and replenishing your score. The Fair Credit Reporting Act that was passed in 1970, gives consumers the right to challenge any erroneous, incomplete or dated information. Many credit reports contain inaccurate information that can have a harmful effect on your credit score. You will be subject to less than advantageous interest rates and higher down payments as a result of a less than stellar credit score. The first step towards amending these commonly occurring errors is to identify them. These are mistakes can happen anywhere in the credit process, such as when someone with a similar name to yours has their negative credit information reported on your file. It is very important to monitor your reports and amend any harmful reporting’s that may present a problem. |
Things to Look For. The items that are considered the most harmful and have the greatest effect on your credit score are here in descending order. |
1.Bankruptcies |
| Your credit score does not consider the fact that you are dealing with a credit counseling service in determining your credit score. Credit repair can be helpful in removing these negative items from your reports. It is important to note that regardless of you paying off collections and charge-off’s they can still negatively effect your score. Some financial institutions actually encourage the use of credit services; this is a positive indication that you are taking affirmative steps to control your debt problems and to rejuvenate your score. |
5. Q How long will this take? |
A. Incredible Credit has custom designed it’s product to cater to each client as an individual. Every situation is unique in its details. What has taken years to destroy can be amended on your behalf in less than a year!. Our clients do however see RESULTS IMMEDIATELY . The progress of your case depends on your timely participation. It is very important to mail in your credit reports on a timely bases. Incredible Credit processes all bureaus within 24-48 hours therefore your participation is critical. So many of our satisfied clients have seen exhilarating progress in the first 60 days. |
6. Q DO I need a Law firm? |
A. No, a law firm is not necessary. Every citizen of the United States has the right under the Fair Credit Reporting Act (FCRA) to challenge any erroneous, inaccurate, incomplete or dated information. This means that you can repair your own credit. Law firms or credit repair services cannot do anything for you that you cannot do for yourself. For many, this process may be what seems to be an uphill battle. For those individuals there is a professional service here, Incredible Credit. We are honest with our clients and do not intend to intimidate or make our clients feel inferior. We just want to help. |