Your Credit Score is calculated by:
Payment History & Late Payments: 35%
Credit Utilization: 30%
Number of Credit Inquiries: 15%
Length of Credit History: 10%
Credit Diversity & Types of Credit: 10%
Below are the reasons for “Bad Credit”
Late Payments:
Delinquencies from late credit card payments, store card payments, car or mortgage payments or any revolving account you have, may remain on file for seven years from the date of the initial missed payment. A single late payment reported on your credit reports can cost as much as 60 points. We dispute all late payments and make the credit bureaus prove their validity because they are so devastating to good scores.
Collection Accounts:
Most collection accounts will begin at the end of a 6 month period of late payments. Typically, they will remain on your reports for 7 years if not properly disputed. Many errors on credit reports are due to improper reporting of collection accounts. Once an account has gone into collection, paying them off will not remove them from your reports as one may think. While the debt may be eliminated, helping your debt/income ratio, it will still remain as a negative for all potential lenders to see.
Charge-off Accounts:
Paying off a charged off account will not remove it from your reports, and remain for 7 years, unless properly disproved and disputed. Since the original debt is sold to collection companies for pennies on the dollar, the collectors are very intense about trying to collect from you because the commission they receive by collecting your debt is huge. Most accounts that are charged off were sent to a collections company first, so they may actually appear twice or three times on your credit reports, which is technically not legal. We dispute all accounts that are negative, no matter how many times they appear on your reports.
Closed Accounts:
When closed accounts show up on your reports, it contributes to your credit history and age, which is not a bad thing. If the closed account was negative, we will dispute it’s validity to get it removed or updated to positive. While they may be reported for up to 10 years, most are easily removed.
Judgments/Liens:
These can remain on your credit reports for up to 10 years, depending on their status. Once the judgment or lien is paid off, it can still remain on your reports as a negative. We dispute all judgments and liens as many record keeping entities do not record and report the information correctly.
Hard Inquiries:
Most hard inquiries to view your credit scores will remain on your reports for two years. Some lenders will excessively inquire about your scores and value to several banks in order to attempt getting you approved. Car dealers and mortgage brokers can check your credit multiple times if you do not monitor them, costing you several points, and credit worthiness.
Soft Inquiries:
A ‘soft” inquiry is like taking a “peek” at your credit reports to see if anything drastic has changed. These will not impact your credit scores. They may be performed by your insurance company, employer or cable/phone companies to monitor your ability to pay them. USA Credit Help will view your credit reports without causing an inquiry to occur.
More About USA Credit Help
We help build better credit scores using our strategic, proprietary methods to make sure your reports are 100% accurate. The credit bureaus are “for profit” organizations that make money by reporting your information to lenders. Your credit reports and scores can determine your ability to buy a car, home and get the lowest rates on insurance and other incentives.
Good credit is important for expanding businesses, improving homes, and purchasing large items on credit terms. The importance and protection of good credit cannot be underestimated, and carefully following your credit scores will help you understand credit better.
We dispute all inaccurate, unverifiable or negative items on all three of your credit reports to increase your credit scores wherever possible. We hold the credit bureaus accountable to report 100% accuracy of your reports on your behalf, based on the Fair Credit Reporting Act requirements. The results we achieve for our clients are nothing short of amazing, using our strategic, proprietary techniques.