Why is your credit report so important and Can I really raise my credit score?
A credit report is a snapshot of your payment history for every credit transaction that you have had from the time you were 18yrs old. It shows when you applied for credit and how many positive and negative accounts you have, who viewed your credit report, and all your personal information that gives a perception of who you are and your characteristics.
Who uses the information in my credit report?
Lending institutions, Banks, creditors, car dealers, mortgage brokers, and landlords use your credit report to determine if you are creditworthy for extending credit or receiving a loan. Collection agencies use the information in your credit report to track your location. They do this to see what other debts you owe in which they can collect on while insurance companies run your credit report to determine if you are a risk, and employment agencies review your report for employment considerations.
How can my credit be fixed?
Zippy Credit Score Repair can help anyone with bad credit and we can do that because of our experience of using your FCRA laws that give all consumers the right to challenge any negative items.
Credit bureaus are billion-dollar businesses that are not part of your government and have to abide by our consumer laws. The credit bureaus are governed by the Federal Trade Commission, Attorney General in your State, and the Better Business Bureau. There are millions of mistakes and false identities every year and it is your job to fight for the rights that you have and establish good credit so that you can take advantage of the benefits and freedoms in our capitalist society.
Our company received a credit report from a 42 yr old woman who had 6 chargeoffs on his credit report and thought that it would only come off after the statute of limitation.
Our office drafted draft a dispute letter to question all six of the inaccurate, untimely, unverifiable, and incomplete trade lines that did not belong to her.
She asked us how we can get this off her credit and our experts let her know that the law allows her to challenge the accuracy of any negative accounts on his report, so the letters were prepared, signed, notarized, and sent certified mail to track. When she received her credit reports 30 days later, all six items were deleted. The moral of this story is that knowledge is power, and is the key to taking control of your financial future.
Fico Score Chart that breakdown your credit score:
800+ 1485 to 1
720- 799659 to 1
680- 719112 to 1
620- 67947 to 1
Below 62015 to 1
This means for every 47 consumers with 625 scores they lend money to, on average 1 will default by 90 days. That means for the lender to make money, they have to charge more interest to those with lower scores to offset the losses of the 1 who defaulted.
How your scores are calculated is based on 5 criteria:
1. Payment history (35%) Do you pay your accounts on time?
2. Amount owed (30%). How much of your credit are you using out of your available credit?
3. Length of credit history (15%) – How old are your accounts? Generally, older is better
4. Credit mix in use (10%) What’s your ratio of credit cards, retail accounts, installment loans, finance company accounts, and mortgage loans
5. New credit (10%) Opening several credit accounts in a short period of time represents a greater risk, especially for people who don’t have a long credit history.