FAQ
Frequently Asked Questions
Credit can be a tricky subject, and while we do our best, we can only answer so many questions on one page.
Credit is when you receive money, a good or a service, and you agree to pay for it in the future—usually with added interest. Nowadays, we use credit to buy lots of things, from houses and cars to groceries and clothing.
If you use it responsibly, credit can be a useful tool. But if you don’t, you’ll have to face some negative consequences that will make your life harder.
Credit repair is the process of addressing any questionable negative items that could be hurting your credit profile. If the bureaus and your creditors can’t verify these items are fair and accurate, they are required to remove them.
Your credit score is a 3-digit number on a scale of 300 to 850 that suggests how creditworthy you are—meaning, how good you are with credit and how much you can be trusted to pay back what you borrow. Potential lenders will use this number to decide what kinds of credit cards and loans to offer you. Generally, the higher the score, the better the offers.
There are a few different types of scores, but the two best-known are your FICO Score and your VantageScore. They’re calculated based on the information that shows up on your credit report.
Generally speaking, there are five tiers of credit score. A good credit score is anything above 670.
Your credit can be brought down a lot faster than it can be brought up, so it might help to review these things that can hurt your credit:
– Not paying bills on time
– Filing for bankruptcy or foreclosure
– Applying for too many credit accounts
– Carrying high balances on your credit cards
– Ignoring questionable negative items on your report
There are five main factors to your credit score–payment history, credit usage, credit age, credit mix and recent credit. Your payment history is the biggest contributor on the list, and can be directly affected by credit repair.
There are five main factors to your credit score–payment history, credit usage, credit age, credit mix and recent credit. Your payment history is the biggest contributor on the list, and can be directly affected by credit repair.