Credit Score Range: What’s Good, What’s Not

credit score range

What is a good credit score? What’s not? How does a credit score range impact your life, and the rates you are able to receive on a car loan or mortgage?

In this post, let’s compare two imaginary people – let’s call them Jerry and Barry – to examine their credit profiles and see how their credit impacts auto loans, mortgages and credit card.

Meet Jerry: Credit Score 780

jerry
A few things about Jerry’s credit report

  • Has 10 credit accounts
  • Has 15 years of credit history
  • No late payments
  • No collections
  • No major derogatory items
  • Balance of 15% on credit card limits

Meet Barry: Credit Score 680

barry

  • Has 5 credit accounts
  • Has 6 years of credit history
  • (1) 30 day late payment from 1 year ago
  • (1) 90 day late payment on another account from 2 years ago
  • No collections
  • No major derogatory items
  • Balance of 45% on credit card limits

The differences between Jerry and Barry are minimal. Barry forgot to pay a couple bills a couple years ago and has a higher revolving balance on his credit cards when compared with his credit card limits. Meanwhile, Jerry has more credit accounts and lengthier credit history on top of a clean credit report.

Let’s see how these differences impact the costs Jerry and Barry have on a mortgage, car loan and credit card.

Credit Score Range On An Auto Loan: 680 score (Barry) vs 780 score (Jerry)

Both Barry and Jerry are looking at a brand new Ford F-150 truck. They are interested in obtaining a 36-month new auto loan with a Loan Amount of $25,000. The term of the loan (36 months) and Interest rates are fixed for the term of the loan. Let’s see how much a credit score range impacts the amount both Jerry and Barry will ultimately pay for the same car.

Credit Score Rate Payment Added Cost
Excellent 720-850 5.30% $753 $0
700-719 6.83% $770 $612
Moderate 675-699 8.78% $792 $1,404
620-674 12.36% $835 $2,952
Bad 560-559 18.20% $906 $5,508
500-559 19.23% $919 $5,976
jerry

Jerry (780 credit score)

As the chart above shows, Jerry and his 780 credit score is able to obtain a 5.30% interest rate for a $753 monthly payment.

the-real-barry

Barry (680 credit score)

As the chart above shows, Barry and his 680 credit score is able to obtain a 8.78% interest rate for a $792 monthly payment. Not only will Barry pay $39 more per month (or a pack of diapers each month for his baby), but he will end up paying an extra $1,404 for the same car.

Credit Score Range On A Home Loan: 680 score (Barry) vs 780 score (Jerry)

Both Barry and Jerry are looking at buying a home in Scottsdale, Arizona. Their 30-year fixed jumbo home mortgage APR’s are estimated based on the following assumptions: FICO scores between 620 and 850 assume a Loan Amount of $300,000, 1.0 (0.0) Points, a Single Family – Owner Occupied Property Type and an 80% (60-80%) Loan-To-Value Ratio.

Credit       Score Rate Payment Added Cost
Excellent 720-850 4.31% $1,487 $0
700-719 4.53% $1,526 $14,040
Moderate 675-699 4.71% $1,558 $25,560
620-674 4.93% $1,597 $39,600
Bad 560-559 5.36% $1,676 $68,040
500-559 5.90% $1,780 $105,480
jerry

Jerry (780 credit score)

As the chart above shows, Jerry and his 780 credit score is able to obtain a 4.31% interest rate for a $1,487 monthly payment on his mortgage.

the-real-barry

Barry (680 credit score)

As the chart above shows, Barry and his 680 credit score is able to obtain a 4.71% interest rate for a $1,558 monthly payment. Not only will Barry pay $69 more per month (or two packs of diapers each month for his baby and the one on the way), but he will end up paying an extra $25,560 for the same house in Scottsdale.

Credit Score Range On Credit Cards: 680 score (Barry) vs 780 score (Jerry)

If a person with average credit (Barry) gets a credit card, chances are that the annual fees and interest rate are much higher than it would be for someone with good credit (Jerry). It can be hard for someone with bad or average credit to recover from having to pay such high fees on their credit card. Let’s see how much more Barry pays in interest than Jerry does on a $5,000 credit card balance.

Card Type     Score Rate Balance Added Cost
Platinum 720-850 4% $5,000 $0
700-719 6% $5,000 $362
Gold 675-699 8% $5,000 $774
620-674 10% $5,000 $1,250
Standard 560-559 16% $5,000 $3,240
500-559 23% $5,000 $7,856
jerry

Jerry (780 credit score)

As the chart above shows, Jerry and his 780 credit score is able to obtain a 4% interest rate on his monthly credit card payments.

the-real-barry

Barry (680 credit score)

As the chart above shows, Barry and his 680 credit score is able to obtain a 8% interest rate – double the interest rate of Jerry for an added cost of $774 on the same revolving balance.

As you can see, a credit score range has a big impact on a life.

Jerry and Barry have minimal differences in their lives (a couple of late payments and a stronger or weaker credit profile) with major differences in the price they pay for important things in their life.

If Barry calls Go Clean Credit, we can help him improve his credit score to get to the same place as Jerry. No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a once size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.

We have fixed price programs that get you back on track in as little as 5 months, debt resolution solutions, programs geared toward people who have had recent short sales or foreclosures and many others. Help is just a free phone call away or you can fill out an appointment request. Contact Go Clean Credit to schedule a free consultation today.

3 Places To Obtain A Free Credit Score

free credit score

Your credit reports matter. Your credit score impacts the interest rate you get on a mortgage, a car loan, apartment leases, credit card approvals, and even employment applications.

You may think you have one credit report and one score, but the fact of the matter is that you have several reports and scores. It is important to review them all to ensure that the information on your credit reports do not contain errors and have up to date information.

What are the most cost efficient ways to obtain a free credit score and free credit report?

In this post we’ll cover some different free and paid options to review your credit reports and credit scores before credit repair.

www.AnnualCreditReport.com

AnnualCreditReport.com is the most popular choice for most people to obtain a free credit report. The website lives up to it’s name, offering people a free credit report every 12 months with 3 reports from the largest credit reporting bureaus, including Experian, TransUnion and _________. Although the report won’t contain your credit score, it will contain the most detailed reports about your credit – essentially giving you a to do list of items to address when working to restore your credit. AnnualCreditReport.com is the only official site explicitly directed by Federal law to provide credit reports.

www.PrivacyGuard.com

If you really want to know your credit score, PrivacyGuard.com is the website you can reliably turn to. They have a great score simulator, offering 3 FAKO scores across 3 reports from the largest credit reporting bureaus. While FAKO scores are not your FICO scores (learn more about the difference between FAKO vs. FICO here), these scores still give you a ballpark estimate for your credit standing. Obtaining these scores and reports are not technically “free” – PrivacyGuard.com offers a 2 week trial for $1 – but it’s worth the investment. Just make sure to cancel your free trial after you obtain your scores, otherwise you’ll incur an expense of $19.99 / month after your 2 week trial.

www.CreditKarma.com

For free monthly credit monitoring, sign up at CreditKarma.com. You’ll receive 2 FAKO scores and 2 credit reports from TransUnion and Equifax.

Bonus websites for pulling your credit and credit monitoring

Besides these three resourceful websites, there are two other places online that are useful for pulling your credit, credit monitoring, and obtaining a credit score.

www.CreditCheckTotal.com

CreditCheckTotal.com is similar to PrivacyGuard.com in the sense that both sites offer a $1 trial period to obtain useful information about your credit. CreditCheckTotal.com’s trial period is only 1 week and then goes up to $29.99 / month, but in the trial period you will be able to obtain 3 different FICO 8 scores (there are 49 different FICO scores in use today, so it is useful to obtain several different scores for a more well rounded estimate of your credit standing), as well as 3 credit reports.

www.myFICO.com

myFICO.com is the only place you can get your real scores from a ‘soft’ pull. Unfortunately, you’ll have to pay more than all the other websites for this information. There is NO trial period, so there’s no real workarounds. You can pay $55 for a single credit pull, or you can pay $30 / month for a 3 month minimum agreement. Using the 3 month agreement is especially useful if you are in the process of restoring your credit and would like to see the progress of your efforts. myFICO.com will enable you to see all of your FICO scores (18 versions of them).

No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a once size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.

We have fixed price programs that get you back on track in as little as 5 months, debt resolution solutions, programs geared toward people who have had recent short sales or foreclosures and many others. Help is just a free phone call away or you can fill out an appointment request. Contact Go Clean Credit to schedule a free consultation today.

8 Questions To Ask Credit Repair Companies

questions to ask credit repair questions

What are some questions to credit repair companies before you sign any type of agreement? Here are 8 basic questions to ask.

What can a credit repair company do to help restore my credit?
Credit repair companies offer a variety of credit restoration services. Credit issues can include things like Mortgage Derogatories, Mortgage Correction, Collections, Charge offs, Late Payments, Judgments, Bankruptcies, Tax Liens, Student Loans, Identity Theft and more. Ask this question to find out what the credit repair company is uniquely qualified to help you resolve.

Here is a list of credit issues Go Clean Credit helps with.

Do you have fixed price programs?
Service companies have an incentive to sign you up for a monthly service to maximize their revenue (instead of providing you with an effective solution as quickly as possible). A credit repair company should offer customers fixed price programs to eliminate the incentive of keeping you on the hook for a long time. Ask this question to see if a company has an incentive to delay your program.

Most of our programs at Go Clean Credit have a fixed cost and expected timeframe. There is no incentive to delay your program. Our Freedom program, while not fixed in cost, maintains the same objective and that is to get the client’s credit restored in the least amount of time while staying within the clients more limited budget.

Do you have a money back guarantee?
The willingness for a company to provide a refund to a customer speaks loudly about the commitment to customers and the effectiveness of the service they provide. You will not find many shady credit repair companies offering a money back guarantee. Ask this question to separate the legitimate trustworthy companies from the rest.

In all of our programs we are committed to helping your achieve your goals. In most cases our clients achieve their objectives within the time constraints of their program, but if for some reason you do not we are committed to working with you to attain the goal. As long as you are committed and ready to improve your credit we will support you in getting there.

Can you guarantee a certain score improvement will be obtained?
Ask this question to see if you have an optimistic sales person willing to say anything to get you to sign on the dotted line.

It is ILLEGAL to tell a client that he or she will get a specific score improvement. Credit companies can tell you the typical score improvements clients receive as a result of enrolling in a program. For example, Go Clean Credit clients typically see a 70-100 point improvement in their credit scores.

What is your process of restoring my credit?
Each situation is unique and will require its own distinct plan. Ask this question to see if the credit repair company takes a customized or one size fits all approach to restoring your credit.

What is the time frame I can expect to see my credit improve?
A credit repair company should be able to give you a definitive time range after an initial consultation. There should never be a wait and see approach.

At Go Clean Credit, simple one letter solutions can finish up within the first month. Typical Freedom Express programs will be 5 months while Freedom clients can expect 7-11 months. Schedule a free consultation and you will have a great idea of how long you should expect to be in one of our programs.

What will my involvement look like in restoring my credit?
Ask this question to avoid the companies that promise “magic.” There is no such thing as an effective credit repair solution that does not involve you. You will need to respond to many requests and be a part throughout the credit restoration process.

Do you work with attorneys?
The truth of the matter in credit restoration is that sometimes attorneys need to get involved. Ask this question to see if the company has any experience in litigation cases.

At Go Clean Credit, we work with attorneys only if necessary. Most of our clients achieve their objectives without the need for an attorney, but occasionally at the end of a program we will use our close and trusted network of attorneys to accomplish a specific client objective in support of a case where a creditor, collection agency or credit bureau has broken the law. We have negotiated exceptional rates for these services when required so that while costing a bit more when needed they are well within the client’s budget and are well worth the expenditure if and when the time comes.

Can you provide references?
The best references come from customer review sites like Yelp and Facebook. Before you hop on a call with a credit restoration company, read the customer reviews on these sites and search for the negative reviews. Read them skeptically, knowing that not all negative reviews are authentic. Find something that stands out to you – like a client who paid monthly for services with no results – and bring these reviews up in your consultation. If the company hasn’t already responded to the reviews on Yelp, their response could prevent you from having a similar experience and result.

No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a once size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.

We have fixed price programs that get you back on track in as little as 5 months, debt resolution solutions, programs geared toward people who have had recent short sales or foreclosures and many others. Help is just a free phone call away or you can fill out an appointment request. Contact Go Clean Credit to schedule a free consultation today.

How Long Does It Take To Rebuild Credit?

how long rebuild credit

There are reputable credit repair companies that be can trusted to rebuild your credit, and there are credit repair companies that can jeopardize that trust.

One of the biggest determinants of how long it takes to rebuild credit is dependent on the company you trust to help you. Some companies have predefined programs with a fixed price to rebuild your credit. Other companies have an incentive to keep you paying a monthly fee for an indefinite amount of time, with no real solutions in sight.

Customer reviews on sites like Yelp and Facebook are wonderful places to turn to before deciding to sign on with a company. Rarely are these reviews influenced by pre-existing advertising partnerships, and usually can be relied on as authentic. In comparison, you could be reading about “the best credit repair companies” on a website that is being paid by the credit repair company to say nice things about them. Double check Yelp or Facebook to see what customers are really saying.

For example, take this one star review from Ken, about a credit repair company on Yelp:

“They charged me $1000 and made my score worse than what it was to begin with. I do not recommend using them. The items that were deleted I could have done myself. Total waste of money.

What’s interesting about this review is that the company owner actually responded to this one-star review:

“There is nothing we can do that will “lower” a client’s credit scores. We achieved many deletions on Ken’s file, which can only improve his scores. The only way scores go lower is when there are new derogatory items that pop up, such as new lates or collections. When that happens we will add them to the program. We always hold an interim review with our clients and analyze a new updated report in a lot of detail to determine next steps. Ken never responded to our many requests to hold that review so we could see what was going on with his file and take the next steps. We can’t force our clients to participate in their restoration process but it is necessary for them to be a part of it. We are very good at what we do and stand behind our 11 years of expertise and our proprietary process. We care very much about helping our clients reach their goals. If Ken would like our help we are happy to work with him and finish his program.

We bring up “customer reviews” for this simple reason:

How long does it take to rebuild credit? It depends on your credit report and the company restoring your credit.

Selecting the right credit repair company is the start of your important journey to rebuilding your credit. If you cannot get a fixed price, a customized plan, an estimated time in months and a guarantee to rebuild your credit, you should consider turning to a different company.

Here is how long it takes to rebuild credit for Go Clean Credit clients:

how long does it take to rebuild credit

As you can see with our credit repair programs, real credit restoration is not a once size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.

We have fixed price programs that get you back on track in as little as 5 months, debt resolution solutions, programs geared toward people who have had recent short sales or foreclosures and many others. Help is just a free phone call away or you can fill out an appointment request. Contact us to fill out appointment form.

How To Improve Credit Score In 30 Days

how to improve credit score 30 days

Your credit score matters. Lenders take one look at your score and determine your mortgage or car loan rates, whether to approve your apartment or credit card application – and even whether or not to hire you for employment.

Given the impact of your score and the urgency of your life situation (that perfect house isn’t going to be on the market forever), there is a big incentive to improve your credit score quickly.

Here is how to improve your credit score in 30 days:

Pay down revolving balances to less than 30%

As we learned in our blog post about what makes up your FICO score, your aggregate debt and the amounts owed on all credit cards and all installment accounts make up about 30% of your credit score. The most common revolving balances are amounts owed on your credit cards, and there is a big difference between the revolving balances of someone with a 780 credit score and a 680 credit score.

A person with a 680 credit score has revolving balances of 40%-50% of their credit card limits.

A person with a 780 credit score has revolving balances of 15%-25% of their credit card limits.

Don’t worry about paying installment accounts. They have a low impact on your score. Instead, the main difference between two people with a 680 and 780 credit score is the percentage of revolving balances. Pay your revolving balances off if possible. At the very least, aim to pay those balances down to less than 30%. This will improve your credit score in 30 days or less.

Remove a recent late payment

A single late payment can drop your credit score by 60 to 110 points. Yikes!

If you had a 680 credit score, a 30 day late payment can drop your score by 60 to 80 points (and 70 to 90 points if you have a 90 day late payment).

If you had a 780 credit score, a 30 day late payment can drop you score by 90 to 110 points (and 105 to 135 points if you have a 90 day late payment).

The difference between a person with a 780 score and a 680 score is that the 780 score has no late payments, while a person with the 680 may have a 30 day late payment within the last year, or a 90 day late payment 2 years ago.

Removing a late payment will take persistence. There are a couple ways to request a removal. The most common and effective way is to call the original creditor and ask for a goodwill adjustment. If they resist, you can even negotiate the removal of the late payment by agreeing to sign up for automatic payments. For other late payments, you can file a dispute against the late payment for inaccuracy.

Remove a collection account

People with a 780 credit score do not have any collections or other major derogatory items on their credit report. If you do have a collection account reporting on your credit report, your goal is to get the collection deleted.

Do NOT just pay a collection. A paid collection usually doesn’t help improve your credit score! Instead, negotiate a “pay for delete” IN WRITING with the collector. Only when you have a written agreement should you pay a collection account, and then work on getting the account deleted.

Raise your credit limits

Call your credit card companies and request a raise to your credit limits. Ask if they can raise your credit limit with a soft pull of your credit, since a hard inquiry will appear under the “New Credit” category of your FICO score. If you can negotiate an increase of your credit limit with a soft inquiry, then you will instantly decrease your revolving balance ratio (revolving balance divided by your credit card limits).

If you have low balances and a good payment history, then your chances of successfully executing this tactic will increase.

Charge small amounts to inactive credit cards

It’s easy to neglect older credit cards when you have a primary credit card that you use every day. If your credit cards haven’t had activity in the last 6 months, charge a small amount to the credit card. Creditors want to see that you are using the credit available to you (and paying the balances off responsibly). Charging a small amount and paying off the balance shows that you have a different mix of credit in use, which makes up a portion of your FICO score.

Get Credit

No credit equals bad credit. You need credit accounts to be reporting to your credit report in order to improve your credit score. You must have at least 1 open revolving account, even if you have no negative accounts. In addition, this revolving credit account must have been used in the last 6 months.

There are a couple of ways to get credit to improve your credit score in 30 days. One way is opening a secured credit card, with a preference being given to a card that reports as an unsecured card with your credit limit to all 3 bureaus.

The other way is to add yourself to a seasoned trade line. Someone with good credit history can add you as a co-signer, where you are equally responsible for all debt. Or, they can add you as an authorized user, where you are not responsible for any of the debt – and Mortgage FICO 5 will count the history as yours.

If you seriously need to improve your credit score in 30 days, you will benefit by enlisting the help of a credit repair company like Go Clean Credit. To learn more about our credit repair programs, please contact us.

No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a once size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.

We have fixed price programs that get you back on track in as little as 5 months, debt resolution solutions, programs geared toward people who have had recent short sales or foreclosures and many others. Help is just a free phone call away or you can fill out an appointment request. Contact Go Clean Credit to schedule a free consultation today.

Best Credit Monitoring Services To Monitor Your Credit

credit monitoring services

Using credit monitoring services to monitor your credit reports is one of the best automated ways to detect false information that negatively impact your credit scores. By simply signing up for a credit monitoring service, you will receive notifications anytime your scores change. If there’s a drastic change, then you know that you may have suspicious activity reporting – things like fraud or identity theft.

Fortunately, there are a variety of free and paid credit monitoring services out there to monitor your credit. In fact, today many credit card companies and credit bureaus are offering their own credit monitoring services to consumers. Which service is best for you to proactively review your credit before credit repair help?

Here are the best credit monitoring services online to monitor your credit:

www.CreditKarma.com

The goal of Credit Karma is to help you understand your credit and get more out of it. Credit Karma provides free credit scores, reports and monitoring. Your credit reports are updated weekly to track your credit health and spot potential errors. Automatic credit alerts include free TransUnion credit monitoring, email alerts when important changes occur, and new activity tracking to help spot identity theft.

Your Bank

If the idea of signing up for and providing personal information to a third party service doesn’t sound like your cup of tea, then check with your bank to see if they offer credit monitoring services. Chances are that your bank already has a service that you can sign up for – oftentimes it’s as simple as checking a preference box online. If your bank does not have credit monitoring services available, then ask them if they have a third party who they work with. This way, you do not have to sign up for an unknown third party that you heard about on a blog post like this one.

Your Credit Card
Many credit card companies are differentiating their cards by offering free credit monitoring services to consumers. For example, CreditWise® from Capital One® lets you see your credit score for free. It’s updated weekly, tells you key factors that impact your credit and has a Credit Simulator that shows how your decisions could affect your score. Even if you are not a Capital One customer, you can still utilize the credit monitoring that CreditWise offers.

Be sure to inquire with your credit card companies to see if they have credit monitoring available to customers. If they do offer these services as a free value add, sign up.

Retailers
There have been several high profile hacker attacks on retailers in recent years. Many retailers as a result have offered credit monitoring services to consumers afterwards in an effort to clean up their public perception. These credit monitoring services offered by retailers have a couple of drawbacks. The first is that these monitoring services are usually temporary, up to 1 year, and will expire eventually. The second is that you’ll have to read the fine print of what signing up for the service means for your legal rights. A retailer may offer free credit monitoring services in exchange for your legal right to file a lawsuit. If that’s the case, look elsewhere.

CreditSesame.com
Credit Sesame gives you a free credit score each month and monitors your credit report at no cost. They will also send you daily monitoring alerts about changes to your credit report. In addition to helping you monitor and manage your credit, Credit Sesame also helps you protect it too. Signing up means you also get $50,000 in identity theft insurance, plus fraud resolution assistance – for free.

www.AnnualCreditReport.com
AnnualCreditReport.com is the only official site explicitly directed by Federal law to provide credit reports. Although this service is not automated, pulling your credit report every 12 months from AnnualCreditReport.com is absolutely something you should do to monitor your credit. Although the report won’t contain your credit score, it will contain the most detailed reports about your credit.

If you are still on the fence about whether or not to sign up for a credit monitoring service, consider this: If your identity was stolen and your identity thief opened up fraudulent accounts in your name, how would you find out? And perhaps more importantly, how long would it take you to find out?

If you have more questions about credit monitoring services or would like to chat with us about our personal recommendations, please contact us.

No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a once size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.

We have fixed price programs that get you back on track in as little as 5 months, debt resolution solutions, programs geared toward people who have had recent short sales or foreclosures and many others. Help is just a free phone call away or you can fill out an appointment request. Contact Go Clean Credit to schedule a free consultation today.

What Makes Up Your FICO Score?

what makes up your fico score

You may wonder why your FICO score has such an impact on your life. How does one number impact the interest rate on your mortgage or auto loan, whether or not you get approved for a new credit card or apartment, and if you get a job offer?

A quick glance at your FICO score can leave you with a lot of questions. For example, if you are looking for a car loan and the auto dealer runs your credit to find a FICO score of 600, you may wonder how FICO came to that number. In this post, we’ll explore what makes up your FICO score.

What Makes Up Your FICO Score?

FICO is the score that is associated with your credit bureau report. FICO scores can range from 350 to 850 and are used to not only determine if a lender will extend you credit, but at what rate that credit will be repaid. In addition to credit-extension, a FICO score is also used by insurance companies for underwriting, apartment companies to determine if you are eligible to rent, and more. Your FICO score is important, and it is imperative that you take the appropriate steps to ensure the best possible score given your circumstances.

Payment History – 35%

Payment history accounts for 35% of your FICO score and takes the following things into account:

  • Number of late payments, how late, how much was owed
  • Frequency and recency of lates
  • Number of accounts where you are ‘paid as agreed’
  • Number of accounts which have past-due and the amount past-due
  • Public records or collections

Payment history is the number one cause for low FICO scores. A single late payment of 30 days or more can significantly drop your score. If you have a 680 FICO score, a single 30 day late payment can drop your score by 60 to 80 points. If you had a 780 FICO score, a single 30 day late payment can drop your score by 90 to 110 points. The bigger your score, the harder you fall—and the more you’ll need credit repair services.

The same is true with the length of a late payment. 90 day late payments can drop your FICO score 70 to 90 points if you had a 680 score, and 105 to 135 points on a 780 score.

A person with a 780 score does not have late payments, collections or other major derogatoriness like a bankruptcy, foreclosure or short sale. A person with a 680 score may have a 90 day late payment from 2 years ago, or a 30 day late payment from 1 year ago.

Amounts Owed – 30%

Amounts owed accounts for 30% of your FICO score and is made up of the following components:

  • Your aggregate debt
  • Amounts owed on all credit cards and all installment
  • Number of accounts with balances
  • Proportion of credit lines being used (keep balance / credit limit low)
  • How much of installment loans are still owed vs. original loan amounts
  • Whether there is a balance on credit card accounts

A maxed out credit card is a typical derogatory item in this category that negatively impacts your score. If you have a maxed out credit card, you may see a 10 to 30 point decrease effect on a 680 score, and a 25 to 45 point drop on a 780 score. A person with a 780 score will have between a 15%-25% balance compared to their credit limits, while a person with a 680 score will have a 40%-50% balance on credit limits.

Length of Credit History – 15%

The length of your credit history accounts for 15% of your FICO score and is made up of the following elements:

  • How long accounts have been established; oldest account, average age of accounts, average age of open accounts
  • How long specific types of accounts have been open
  • Time since account activity (revolving)

Recent credit card activity and the average age of accounts typically is what is looked at on credit reports. A person with a 680 score typically has a 8 year history, while a person with a 780 score will have greater than a 15 year history.

Types of Credit – 10%

Types of credit typically accounts for 10% of your FICO score and looks at the following:

  • What types of accounts you have
  • How many of each type of account

Types of credit could include open and closed credit cards, an auto loan or an open mortgage account. A person with a 680 FICO score typically has about 6 credit accounts, while a person with a 780 score has more than 10 credit accounts.

New Credit – 10%

The final 10% of your FICO score looks at new credit.

  • Number of recently opened accounts
  • Time since recent account openings
  • Number and recency of hard inquiries

No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a once size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.

We have fixed price programs that get you back on track in as little as 5 months, debt resolution solutions, programs geared toward people who have had recent short sales or foreclosures and many others. Help is just a free phone call away or you can fill out an appointment request. Contact Go Clean Credit to schedule a free consultation today.

9 Crazy Facts About The Credit Repair Industry

In today’s world, your credit reports and scores have considerable importance (for better or worse), and can either save you money or cost you money. Who is the Oz behind the curtain of the credit industry that is responsible for your credit?

To help bring a little clarity to the confusing world of credit reports, here are some facts about the credit repair industry.

Fact: Each MONTH, 10,000 data furnishers (creditors) provide info on 1.3 billion consumer “trade lines.”

Equifax, Experian, and TransUnion each have more than 200 million files on consumers. In a typical month, they receive updates from approximately 10,000 information “furnishers,” which are the entities that supply data on consumers. The furnishers do this on more than 1.3 billion “trade lines,” which are individual information sources on a consumer report such as a consumer’s accounts for a car loan, mortgage loan, or credit card.

No wonder why credit reports can have material errors before credit repair.

Source: CFPB Report, 12/12

Fact: Studies range from 25% to 79% of credit reports have material errors

In February of 2013, 60 Minutes ran a report called “40 Million Mistakes: Is Your Credit Report Accurate?” The study indicates that as many as 40 million consumers have a mistake on their credit report. Plus, it’s hard to get them fixed.

Here’s the video.

Fact: Roughly 77 million Americans, or 35 percent of adults with a credit file, have a report of debt in collections.

These adults owe an average of $5,178. Debt in collections involves a nonmortgage bill such as a credit card balance, medical or utility bill that is more than 180 days past due and has been placed in collections. 5.3 percent of people with a credit file have a report of past due debt, indicating they are between 30 and 180 days late on a nonmortgage payment.

Source: Urban Institute

Fact: Roughly half of all collections tradelines that appear on credit reports are reported by debt collectors seeking to collect on medical bills claimed to be owed to hospitals and other medical providers.

credit repair industry facts

These medical debt collections tradelines affect the credit reports of nearly one-fifth of all consumers in the credit reporting system.

Source: CFPB

Fact: More than half of the trade lines in the credit bureau databases are supplied by the credit card industry.

Credit reporting companies get their information from a variety of industries but more than half of the account information is supplied by credit card companies. Specifically, 40 percent comes from bank cards, such as general credit cards, and 18 percent comes from retail credit cards. Only 7 percent comes from mortgage lenders or servicers, and only 4 percent comes from auto lenders.

Source: CFPB Report

Fact: More than a third of disputes have to do with collections
In 2011, consumers reached out to the credit reporting companies roughly 8 million times, resulting in disputes of 32 to 38 million items in their credit files. Almost 40 percent of the disputes relate to debt in collections, and debt in collections is five times more likely to be disputed than mortgage information. According to the industry, some of this may have to do with consumers’ incentive to dispute any negative information on their reports.

Source: CFPB

Fact: Fewer than one in five people obtain copies of their credit report each year

The most effective way for consumers to identify errors in their reports is to obtain copies and review them. But only about 44 million consumers per year, or about one in five, obtain copies of their files.

Source: CFPB

Fact: The top 10 data furnishers provide 57 percent of the trade lines coming into the credit reporting companies.

Most information contained in credit files comes from a small number of large banks and other financial institutions. In fact, the top 50 furnishers provide 72 percent. And the top 100 furnishers provide 76 percent.

Who knew that most information contained in credit reports comes from a few large companies?

Source: CFPB

Fact: An average of 15 percent of consumer disputed items are addressed internally by the credit reporting companies

Most complaints and disputes are forwarded to the furnishers that provided the original information. Why is that a problem? With 85 percent of all disputes and complaints being passed on to the furnishers, the CFPB report found that “the documentation consumers mail in to support their cases may not be getting passed on to the data furnishers for them to properly investigate and report back to the credit reporting company.”

Yikes. All of these facts about the credit repair industry shine some light on the confusing world of credit reports, and the types of volume that happens each month in credit disputes.

No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a once size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.

We have fixed price programs that get you back on track in as little as 5 months, debt resolution solutions, programs geared toward people who have had recent short sales or foreclosures and many others. Help is just a free phone call away or you can fill out an appointment request. Contact Go Clean Credit to schedule a free consultation today.

Event: Credit and the Credit Score Workshop

Credit Repair Workshop

When: Friday, May 20th at 10am – 1pm
Where: Seville Country Club, 6683 S Clubhouse Dr, Gilbert, AZ 85298
Cost: $10
Credits: Receive 3 hours of general credit from the Arizona Academy of Real Estate

Click here to RSVP

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No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a once size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.

We have fixed price programs that get you back on track in as little as 5 months, debt resolution solutions, programs geared toward people who have had recent short sales or foreclosures and many others. Help is just a free phone call away or you can fill out an appointment request. Contact Go Clean Credit to schedule a free consultation today.