How Many Points Will A Collection Affect Your Credit Score?

how many points will a collection affect your credit score

Not only can a good credit score help you get mortgages, loans, or higher card limits, but it can also help if you’re seeking employment. A survey by CareerBuilder found that of employers who run background checks, 29% check credit reports of potential employees.

When you have late payments that are past due, the debt can be sent to a collections agency. The agency will then try to recover the money you owe, which is all recorded on your report. The effect it has on a credit score is usually devastating.

But how many points will a collection affect your credit score?

Read on to find out how collections work, what you can do to bring your score back up, and ways to avoid collection accounts from damaging your credit score.

How Do Collections Work and How Can You Remove Them From Your Report?

Charge-Offs & Collections

After 180 days of no payments, a creditor thinks you will not pay anything at all on your credit card bill and they charge-off your account. A charge-off is a highly detrimental entry that stays on your report for seven years from the date it first became delinquent.

After a charge-off, after an account has been charged off, creditors often utilize third-party debt collectors to attempt to collect payment. The original creditor may continue to own the account, but assign it to the third party for collection. In that case, only the original charge off with the balance will be reported.

However, if the creditor sells the debt, a new collection account will report to your credit file, so now you have two major negative items all on the same debt: a charge-off (with zero balance) and a collection (with a balance). It takes a toll on your credit score.

It’s a good idea to consider settling with the original creditor before they sell the debt, and the collection account shows up. Payment should also stop any further account updates and allow the charge-off to age.

The more severe the delinquency, the more money that is past due, and the more recent the collection all produce a devastating hit to your credit score.

How Many Points Will a Collection Affect Your Credit Score?

If your credit scores are in the 700s, the first collection can cost you well over 100 points. If you have lower scores and other types of negatives, the new collection will have less impact, but it will still be significant.

Since the FICO algorithms are extremely complex, and the details of how they work are kept highly secret, we cannot describe exactly how many points your score will drop due to a charge-off or a collection. However, any credit score drop can be devastating. To gain a better idea of the impact on your score, you can run what-if simulations described below to see what may happen in your particular case.

The Amount of the Collection Debt is Irrelevant

Regardless of how high the dollar amount is, your collection debt impacts your credit score the same way. In other words, if the debt is over $1, it does not matter how much you owe.

For example, if you have a debt of $200 and it lowers your score by 50 points, a $100,000 debt would drop your credit score by the same amount—50 points.

The Number of Collection Debts Matters Somewhat

The biggest hit to your credit score will occur when the first collection account is reported. Each additional collection will have a smaller impact. As long as the collection agencies are not continuing to update the account every month, the negative impact on your score will lessen over time.

Paying off a Collection Debt Can Lower Your Credit Score

The date the collection debt shows up on a report is very significant.

For example, a debt may have been defaulted on with a bank in 2011, but when it got sold to the collection agency in 2016, they will report the open date as 2016. That date does affect scores—the more recent, the more negative the impact.

A collection account is a derogatory “event” on your credit, regardless of whether it is paid or unpaid.

In most cases, the payment of a collection will have zero impact on scores (payment of an original creditor account is very different—we are just talking about third party collections here). Furthermore, if the reporting of a collection has not been updated at all for two or more years, paying that collection could drop your score because the date of the last payment will become current.

But yes, there is a way to pay a collection and have it improve your scores. Keep reading to learn how.

Are Medical Collections Left Out of Your Credit Report?

No, not when you’re dealing with FICO scores. Many argue that medical debt is separate from other kinds of debt. This is because it is often beyond your control.

The current FICO algorithm does not differentiate between medical collections and any other type of collections—they all impact scores equally. It can drop your score more than 100 points and can stay on your report for up to seven years.

Some of the confusion which arises regarding medical debt is due to the fact that when you are getting a mortgage, medical debt may be subtracted from your Debt-to-Income Ratio. But that is a separate qualification criterion that has nothing to do with FICO scores.

Removing a Collection Account Will Usually Result in a Score Boost

Many people facing collections wonder, “How many points will my credit score increase when collection accounts are removed from the report?”

While it is difficult to predict the exact numerical increase, there are advantages to deletion.

Here’s how to go about removing a collection.

When contacting a collector to settle, you should always try to get them to agree to a “payment for deletion.” There is a good chance it will boost your score. The only way to know in advance of calling to settle is to run a “what-if” simulation. Basically, you will want to run a scenario that shows how many points you would gain if you paid the collection (typically 0) versus how much your score would increase if the account was completely removed.

Truth be told, paying off collections won’t necessarily raise your credit score at all. But if you can secure payment for deletion, the chances of boosting your score are much higher.

Here’s How to Run a What-If Simulation

There are two ways to do it. Here are your options:

  1. If you are working with a mortgage company and they have pulled your credit in the last 30 days, they can run such a simulation.
  2. You can sign up for and run the analysis—this three-bureau monitoring site has excellent simulation capabilities. The scores are consumer scores, not FICO. But the question here is which collection(s) should you try to pay or delete, based on the potential score improvement you may see.

Of course, there may be other reasons for you to pay a collection you believe you owe, but if you are looking for score improvement, follow the instructions above.

Note: Not all collection agencies will agree to pay for deletion. These agencies have contracts with the bureaus to pull and report credit. The bureaus don’t want collections removed from credit reports (for several reasons that tie to protecting their business model).

If the bureaus see too many deletions, they can stop doing business with the collector (which means the collector is out of business). If you go through the simulations above, you will know whether deletion is required, and it will help guide your decision whether to pay.

Remember, collections will fall off your report seven years from the date of your first missed payment with the original creditor. It doesn’t matter how many times the debt gets resold unless the collector re-ages it (which can happen).

Moreover, every type of debt has a statute of limitations for collection (which varies by state and type of debt) where, when reached, you are no longer legally obligated to pay. Knowing whether your debt is time-barred will help you in settlement negotiations.

Need Help Repairing Your Credit?

We hope that this article answers your question, “How many points will a collection affect your credit score?”

Collections can happen to anyone, whether you are already responsible for managing your credit or if you have arrived at difficult times financially. The trick is to rebuild your credit and Go Clean Credit can help.

Need to know more about how many points will a collection affect your credit score? Let us know! To enlist the help of a trustworthy, effective credit repair company, contact Go Clean Credit today.

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 one 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 five 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.

Why Did My Credit Score Drop? 7 Common Reasons

why did my credit score drop

Why did my credit score drop?

If your score recently just dropped, you’re probably asking yourself why. The thing is, many factors make up a credit score, and there are even more reasons it dropped.

Keep reading to find out what caused your score to drop and learn how to repair it!

Why Did My Credit Score Drop? Here’s the Answer!

1. Missed or Late Payment

Missing a payment deadline is a common mistake. However, few people realize how drastically it can impact their score.

Payment history is the most heavily weighted item on your report, making up 35% of your overall score. Therefore, if you miss just one payment on a credit card or loan, it could drop your score by as much as 75 points!

More specifically, if you are more than thirty days past due on a payment, it will be reported to at least one of the three credit bureaus and cause a drop in your score. If it’s sixty to ninety days late, your score will likely drop even more.

If your payment is more than 180 days, the lender can send your debt to a collections agency. Collections show up on your report and can drop your score by as much as 100 points. Moreover, collections typically stay on your report for seven years. 

In the end, missing payments drastically harms your score, and maybe the reason why your score dropped.

2. High Credit Utilization

What is credit utilization?

Credit utilization is the ratio between the amount of money on your credit card balance divided by your total credit card limit. In other words, the more credit you spend, the higher your credit utilization.

When analyzing how to use a credit card, it’s a good rule of thumb to keep your credit utilization under 30%.

For example, if you have a credit limit of $10,000, then don’t use your credit card to spend more than $3,000. Always keep your credit utilization under 30%

What happens when you spend more than 30% of your credit limit? 

The thing is, your credit utilization, or amounts owed, makes up about 30% of your overall credit score. If you have recently charged a large amount of credit to your card, this may be the reason your score has dropped.

Moreover, if you tend to spend more than this, lenders may see you as someone who is overextended financially and isn’t in a great place to take on new debt. This can make it difficult to qualify for loans.

If you believe high credit utilization may be the reason why your score has dropped, consider spending as little as 10% of your credit utilization in the coming months. This way, you can keep your credit card balances manageable and improve your score.

3. Lowered Credit Limit

Perhaps you haven’t utilized more than 30% of your credit. However, credit utilization may still be the culprit! Let me explain.

Let’s take the example from above. If your credit limit changes from $10,000 to $6,000 and you spent $3,000, your credit utilization ratio is no longer 30%, but 50%! In this case, high credit utilization may not be your fault. 

If you think this may be why your score has dropped, it’s a good idea to contact your credit company to check if your limit has been lowered. This way, you can be sure to stay on top of your credit utilization ratio.

4. Errors on Your Report

According to the Federal Trade Commission, one in every five consumers have at least one error on one of their reports. Errors could be the result of someone simply recording inaccurate information, or it could be something more serious like identity fraud.

Therefore, it’s a good idea to take a look at your credit reports and check for mistakes. If you believe there might be an error on your report, you’ll want to collect as much documentation as you can to dispute the error with all three bureaus. The credit bureau must prove that the item on your report is true and if they can’t, they must remove it.

If you aren’t sure how to find the error on your report or how to dispute the errors, it may be a good idea to contact a credit repair agency. These agencies work hard to fix any errors on your report and even remove other negative items, such as the ones listed in this article.

5. Loan, Mortgage, or Credit Card Application

Have you recently applied for a loan or filled out a credit card application?

Each time you apply for a loan, mortgage, or credit card application, the lender will request a copy of your credit score. This can damage your score.  

Inquiries about your score can impact your score and stay on your report for up to two years.

If you’ve applied for more than one credit card application, all of those hard inquiries can hurt your score.

It’s a good idea to keep old credit cards for as long as possible rather than apply for new ones. Why? The length of your average credit history makes up 15% of your score. While old credit accounts can help your score, new applications may harm it. 

6. Missed Payment on a Co-Signed Loan

Have you accurately made all your payments on time, been super responsible with your credit, and have no errors in your report? 

The reason your credit dropped may not be your fault.

If you have ever co-signed a loan, your credit score can be affected by the other person. For instance, if the person you co-signed for missed a payment, it will affect your score just as if you missed the payment, even though it was the person you co-signed for who missed it.

If possible, contact the person you co-signed for to see if that could be the reason why your score has dropped. 

If you are thinking about co-signing for someone, make sure they can make all the payments on time. Your score won’t be impacted just by co-signing. However, you are in charge of the full amount. So if they miss even one payment, your score could suffer.

7. Paid off a Loan

Have you recently paid off a loan or a credit account?

Remember that your credit history makes up 15% of your score. So if you pay off a loan, that means you have one less credit account active. 

While paying off a loan is a huge achievement, know that your score could suffer a small drop because of it!

Do You Need Credit Repair Help?

If you are asking yourself, “Why did my credit score drop?” know that there are many ways you can improve your score fast.

If you need help disputing errors on your report, removing negative items, or you need help with other credit-related issues, a qualified credit repair agency can help!

Go Clean Credit is a passionate credit repair agency that is dedicated to helping you achieve financial success. They know that restoring your credit score can feel overwhelming, and Go Clean Credit is there to support you every step of the way. They will help you understand how to read your credit report, and then they will dispute any negative items and errors that are on it.

In the end, Go Clean Credit wants you to feel financially secure to take on the future. Do you want to purchase a house, a car, or become financially more secure? This top credit repair agency wants to help you succeed!

To learn more about how Go Clean Credit can improve your credit score, give them a call at 1-866-991-4885 for a free consultation or fill out a contact form today!

Do Credit Builder Loans Work?

credit builder loans

Credit builder loans, otherwise known as “fresh start loans” or “starting over loans” are not widely advertised. Therefore, few people know what they are and whether or not they work. 

So do credit builder loans actually improve your credit? Read on to find out!

Everything You Need to Know About Credit Builder Loans

What is a Credit Builder Loan?

When you take out a loan, lenders will take a look at your credit score to determine whether or not you qualify for the loan. In addition, if you do qualify for a loan, your credit score will also affect your interest rate. That goes to say, the lower your credit score, the harder it is to take out a loan and qualify for low-interest rates.

Credit builder loans are significantly different than a traditional loan. Credit builder loans are typically offered by smaller financial institutions, such as credit unions, Community Development Financial Institutions, online lenders, or lending circles. Your credit score does not affect your eligibility for a credit builder loan. Instead, lenders may have strict policies to ensure that you repay the loan. For example, you may have to meet an income threshold.

Do Credit Builder Loans Improve Your Score?

The payments you make on your credit cards and loans have the most significant impact on your credit score—making up 35% of your credit score!

Moreover, the payments you make on your credit builder loans are reported to the three major credit bureaus. Therefore, when you make payments on time, you can boost your score significantly over time. 

That’s often why these types of loans are called “credit builder loans.” Anyone can take one out as long as they have the necessary income to make payments, and it allows you to build your credit score when you aren’t able to take out other loans.

The Danger of Credit Builder Loans

As mentioned, when you make payments on time, you can raise your score. However, this isn’t guaranteed.

When you miss just one payment by thirty days or more, your score could drop as much as 100 points! The missing payment may go to collections and stay on your report for up to seven years.

While a credit builder loan is a great option if you are determined to make every payment on time, it won’t be of any help if you end up missing even one payment.

Additionally, you will want to be careful who you borrow money from. There can be many risks involved with no credit check loans.

Keep in mind too that you don’t have to take out a loan to increase your score. If you use your credit card the right way, you can improve your score over time. Additionally, you can try to remove negative items on your report.

Do You Need to Repair Your Credit?

If you need to repair your credit, partnering with a credit repair agency can help! 

Go Clean Credit is a leading credit repair agency that is passionate about helping individuals achieve their financial dreams. They are a team of consumer advocates who are focused on your goals as an individual. That being said, they will work closely with you to repair your credit quickly and efficiently.

Go Clean Credit can help with a number of issues, including mortgage derogatories, mortgage correction, collections, late payments, bankruptcies, tax liens, student loans, identity theft, and more! 

To learn more about how Go Clean Credit can help you, contact them today or give them a call at 1-866-991-4885 for a free consultation!

Almost There? Here’s How to Increase a Credit Score to 800

how to increase credit score to 800

Do you have great credit, but just can’t seem to reach 800? 

If so, congratulations! Most people don’t have a credit score that good. 

However, to learn how to increase a credit score to 800, you have to understand what makes up your credit score. According to MyFico, your score is calculated from the factors five different factors:

how to increase credit score to 800

In other words, these five factors determine your overall score. Based on these numbers, this article will show you exactly how to increase a credit score to 800!

Learn How to Increase Your Credit Score to 800 in a Few Simple Steps!

Never Miss a Payment

Your payment history alone makes up over one-third of your credit score! 

So how does this impact your score?

Missing one payment can drop your score by 50-75 points! If you keep paying your bills on time, you’ll not only maintain awesome credit, but you can increase your score fast!

Use a Fraction of Your Credit Limit

Your credit utilization, or amounts owed, make up 30% of your overall credit score.

Going over your credit card limit can drop your score by 40-50 points. However, as a rule of thumb, you should try to only use about 10% of your credit card limit.

The most effective way to do this is to have high credit card limits, but only spend a small amount. Moreover, if you have a tough time staying this far below your credit limit, you can try to raise the limit. 

Acquiring high limits and restricting your credit usage will improve your use-to-limit ratio. As a result, your credit score will improve! 

Maintain a Long Credit History

It’s best to keep old credit cards rather than opening up new ones. Why? 

Well, the length of your credit history contributes to 15% of your score. What does that mean exactly?

Let’s say you got a credit card six months ago and paid off all your bills on time. That’s a good start, but it doesn’t look as good as if you had a credit card for ten years and paid all your bills on time. 

Typically, your average credit history age plays a role. For example, say you opened an account ten years ago and another six years ago. Your average credit history is eight years.

On the other hand, say you opened a credit account every two years for the next decade. Your average credit history would only be five years. Therefore, a good rule of thumb is to have a few old accounts rather than have multiple new accounts. Moreover, don’t close old accounts—they dramatically increase your credit score!

Pursue a Mix of Credit Types

There are two types of credit you can pay back: revolving accounts like credit cards and installment loan accounts like mortgages or student loans. 

Credit cards are revolving accounts, which means the amount you owe will change from month to month. As mentioned before, it’s best to keep this balance low. 

On the other hand, installment loans have a fixed number with a set number of scheduled payments. When you pay off an installment loan, you no longer owe money. Paying off these loans can actually help to improve your score, though usually only a minimal amount. The important thing to remember is to make payments regularly.

Overall, having at least one of each type of credit will actually benefit your score. This is called your credit mix and makes up 10% of your credit score. 

Remove Derogatory Items

Derogatory items on your account include bankruptcies, judgments, collection accounts, charge-offs, late payments, and accounts that are settled for less than the full balance. 

These items on your credit report can significantly lower your credit score. In fact, if you are close to 800 but just can’t seem to reach it no matter what you do, it is worthwhile to check your credit report for derogatory items.

There are a few ways to remove these negative statements. For example, to remove a late payment, you may have to negotiate with the creditor.

To remove a bankruptcy, however, you will have to wait until enough time has passed—usually between seven and ten years. Another way to remove derogatory statements is to get the help of a credit repair specialist, who can expertly negotiate the removal of any negative items on your report.

Get Professional Credit Help!

Do you need derogatory items removed from your credit report or simply want some expert advice on how to increase your credit score to 800? A credit repair company has the answers you need!

Go Clean Credit is one of the best credit repair specialists. They are passionate about making your financial dreams come true through their personalized credit repair services. Moreover, they can help with a number of issues that may be on your report. If you need help getting your score to 800, contact Go Clean Credit today for more information!

Top Credit Repair Companies in Prescott, Arizona

credit repair companies in Prescott

Your credit score is an important number that determines how reliable you are at borrowing money and it can have a big impact. For example, if you have a low score, it can make it difficult to qualify for loans. Therefore, if you have a low score, it’s important to improve it before buying a house, car, or making another large payment. You can always use a do-it-yourself credit repair software or simply try to improve it on your own. However, these methods involve you putting in a lot of work and often, you aren’t even guaranteed results.

A credit repair company may be the answer you need! Keep reading to find the top credit repair companies in Prescott, Arizona!

Repair Your Score With These Top Credit Repair Companies in Prescott, Arizona!

1. Go Clean Credit

Our number one credit repair company in Prescott is Go Clean Credit. They are passionate about helping individuals be triumph over the pitfalls of bad credit. Moreover, their individualistic approach recognizes you as a valued individual who needs credit repair services, not as a faceless customer who simply has bad credit. They know that good people sometimes have bad credit -and they know exactly how to help!

They work hard to simplify the seemingly overwhelming process of improving your credit. In the end, their mission is your success! Contact them today to get started!

2. Andorra Credit Repair

Andorra Credit Repair believes you shouldn’t have to wait any longer with a bad credit score. They provide an immediate action plan for a speedy repair. Essentially, heir experienced professionals work hard so you don’t have to be frustrated over bad credit any longer. Moreover, they offer multiple credit repair services so their customers can experience a complete recovery from a bad score.

3. Credit Absolute

Credit Absolute sees results fast! Within 30-90 days, your credit score can increase anywhere between 40-100 points with the help of their credit repair experts. They are driven by positive results. Credit Absolute also has a very personable approach. You speak directly to a credit expert over the phone or in-person and they explain to you why you might not be getting loan approvals, among other things. Next, they communicate with you every step of the way so you know exactly how they are fixing your report. 

4. Anytime Credit Repair

Anytime Credit Repair has a data-driven approach. They know that 79% of credit reports contain errors. If a credit bureau can’t prove that it is valid, the bureau must remove it. Therefore, Anytime tries to get all those negatives off your report so your credit score improves in a timely manner. Moreover, their customer-service-driven approach paves the way for happy, satisfied customers.

5. Zorro Credit

Zorro Credit’s philosophy is to get your score repaired as fast as possible. Their team of experts sits down with you to create a clear plan to drive the quick results. Their team of highly qualified lawyers dispute errors on customers’ reports every day. They can remove collections, late payments, bankruptcies, charges, and foreclosures. They have the experience you need to get the right credit score. 

6. Credit Revitalize

Credit Revitalize is proven to be 3x more effective than a typical credit repair service. They’ve developed a revolutionary, high-tech way of improving credit fast. They can even challenge up to sixty items on your report at a time! Furthermore, they are able to permanently delete all types of negative credit. They believe everyone has the right to a fair and accurate credit profile.

Start Repairing Your Credit Today!

With so many credit repair options, improving your score is easier than ever. Contact one of these top credit repair companies in Prescott and increase your score today!

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How to Improve Credit Score in 30 Days

how to increase credit score Your credit score matters. Someone can take one look at your score and determine your mortgage and car loan rates, consider whether or not to approve your apartment or credit card application, and even decide whether or not to hire you for employment. Your credit score impacts many aspects of your life. Therefore, it’s vital that you start raising your score now (that perfect house isn’t going to be on the market forever). Keep reading to discover how you can improve your score in as little as 30 days!

Here’s how to improve your credit score in 30 days:

1. Pay down revolving balances to less than 30%

how to improve your credit score in 30 days 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. However, there is a big difference between the revolving balances of someone with a 780 credit score and a 680 credit score.
  • Credit score of 680 → revolving balances of 40%-50% of their credit card limits.
  • Credit score of 780 → revolving balances of 15%-25% of their credit card limits.
Essentially, don’t worry too much about paying installment accounts. They have a low impact on your score. Instead, pay your revolving balances off as soon as possible. At the very least, aim to pay those balances down to less than 30%. This will help to improve your credit score in 30 days or less.

2. Remove recent late payments

A single late payment can drop your credit score by 60 to 110 points. Yikes!
  • A 680 credit score → a 30-day late payment can drop your score by 60 to 80 points. On the other hand, a 90-day late payment can drop your score 70 to 90.
  • A 780 credit score → a 30-day late payment can drop your score by 90 to 110 points. In contrast, it can drop 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 of ways to request 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.

3. Remove a collection account

how to raise your credit score in 30 days 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, you should try 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.

4. 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 good payment history, then your chances of successfully executing this tactic will increase.

5. Charge small amounts to inactive credit card

how to improve credit score 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 six months, charge a small amount to the credit card. Creditors want to see that you are using the credit available to you as well as 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.

6. 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 preference being given to a card that reports as an unsecured card with your credit limit to all three bureaus. The other way is to add yourself to a seasoned tradeline. 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.

Start Improving Your Score Today!

If you need to improve your credit score as soon as possible, you could benefit by enlisting the help of a credit repair company such as 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 one 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 Does Credit Work: The Beginners Guide

how does credit work

Borrowing money enables people to make purchases without paying cash. Buying a home, purchasing a car, or taking care of smaller day-to-day expenses are just some of the things people use credit for. However, credit works similarly to loans and must be paid back in full. One major difference between a loan and a credit card is that the cardholder chooses how much to spend their money on, and then they must pay back the amount spent. On the other hand, loans are a fixed amount of money that is repaid over a selected amount of time. So how does credit work?

A credit report thus tracks whether a person is reliably paying off his or her debt when payments are due, or if s/he fails to make the payments on time. Most individuals who have student loans, have purchased a home or car, and/or have used a credit card have a credit score. Essentially, your credit score communicates to lenders how likely you are to pay back your debt, as well as how likely you are to pay it back on time. So now you know what it is, you’ll want to know the answer to the question of how does credit work?

Why is it important to know your credit score?

A good credit score can make it possible for you to receive better terms and conditions when taking out a loan. Additionally, it may even impact the interest rates of those loans. Therefore, it is important to know what your credit score is, as well as understand what it means.

  • Excellent credit: 750 and above
  • Good credit: 660-749
  • Fair credit: 620-659
  • Poor credit: 619 and below

An excellent credit score gets you the best financing terms available when you borrow money. For example, if you are buying a house with an excellent credit score, you will qualify for the lowest interest rates out there. In the span of a few years, the low-interest rates can save you thousands of dollars.

With a good credit score, on the other hand, interest rates will be a little higher if you wanted to borrow money. It might be a good idea to try and repair your credit score before taking out any loans.

Bad credit can make it difficult to qualify for many loans. Though there are loans available for people with poor credit, the interest rates can be very high. Luckily there are things you can do right now to help you raise your credit score! For example, you can pay off debt, ensure payments are made on time and use your credit. If you use your credit and then pay it off on time, you can actually raise your score.

Where can you find your credit score?

If you don’t know what your credit score is, don’t fret. There are a number of places where you can find your credit score. You can check with your credit card holder, use a credit score service, or use a variety of other options.

If you discover your score isn’t what you want it to be, contact Go Clean Credit. We know it can be scary to have poor credit, but we are dedicated to helping people raise their score in a way you can trust.

Do-It-Yourself Credit Repair Software: What to Know Before You Try

do it yourself credit repair software

Do-it-yourself credit repair software on the internet at the onset can seem very promising, but buyers beware! These products can do more harm than good if you are not doing your research into what they offer. You can run into a number of issues with security, not getting the results promised, or the credit issues are just too hard to fix by yourself.

It is important to know your current credit situation before you download DIY credit repair software, so you know what to expect from their services. For those of you who are thinking about purchasing do-it-yourself credit repair software, here are a few things you should know before you buy:

Internet Security Varies

With privacy being a huge issue today in the world of internet security, there are malicious spyware programs that are disguised into what looks like to be a harmless program. You might be a situation where you cannot afford to hire a credit repair specialist to help you increase your score, so you decide to buy and download an affordable or free program from the internet. These programs can be hacked by criminals who could encode a spyware program into simple credit repair software and you would have no idea.

As a consumer who is required to enter personal data into said credit repair program, the spyware that has been coded into the site can capture extremely sensitive financial data and spread it all across the internet. In no way are we saying that all do-it-yourself credit repair software programs contain malicious spyware, but this is a warning that it is not encouraged to download software that does not come from a well known, reputable company.

Improvement Isn’t Guaranteed

No matter what kind of issues you are trying to solve with do-it-yourself credit repair software, it can be tough to see improvements over a short period of time. Bad credit does not fix itself overnight and it might take some time before you see real results. However, without the help of a professional, you might have to wait even longer before you notice credible results. This is due to you trying to solve your credit issues yourself and not knowing the fast and easy ways to communicate with the credit bureaus or lenders.

Most credit repair issues require you to speak with someone from either your bank or bureaus. Without someone who has years of experience in communicating with these stubborn individuals, it can be tough to improve as fast as you would like. All in all, it’s best to find a credit repair company who can work with you even when your budget is small. Companies like Go Clean Credit,  do not treat you like a “number” and take the time to fully understand your unique situation.

Some Problems Are Too Tough

You might think that you can solve your credit repair issues by yourself because you caused them in the first place. Most people do not realize that these issues can be far more complicated than they thought. Without years of credit repair knowledge, you might find yourself stuck in a place where you can’t move forward and after all your hard work, you are back to square one.

Of course, this is not why you purchased do-it-yourself credit repair software and you need to find better alternatives in order to improve your credit score.

No One-Size-Fits-All Solution

As a consumer, you should ask yourself one important question. Is taking something as important as credit score into your own hands really worth the risk of causing further damage? Most people would answer no, and we would agree.

Your credit profile is something that will follow you throughout your entire life and it’s better to work with professionals who know what they are doing. No matter what your situation is, it is best to reach out to a credit repair company to see if they have programs available to help you through this time of struggle.

Go Clean Credit offers valuable credit repair programs to its clients while educating them every step of the way. The credit repair representatives at Go Clean Credit believe that education is just as important as improving your score, so they will make sure you understand every step of the way.

7 Foolproof Credit Hacks to Boost Your Credit Score

credit hacks

When your credit score is down, the way back up looks daunting – but it doesn’t have to be. Getting back on top will require determination and a bit of craftiness, but with the right guidance, it is perfectly doable. Here are seven credit hacks that will boost your score in no time. Pay close attention to each one and apply those that you can right away – you’ll see your score rise!

1. Remove Old Debts

Even after a debt has been settled, it remains on your record. Removing old debts from your record, then, is an essential part of getting back on track. Nobody is collecting on your old mortgage any longer, of course, but it can impact you all the same. Because it is on the record, it is weighed against you when your credit is run. Removing this old debt means contacting the lenders, sending letters, and stressing the importance of it all.

2. Make Payments on Time

Making payments on time isn’t so much of a hack as it is just a simple rule to follow. By making your payments on time, you can ensure that your credit score continues to rise and show responsibility. Any slip-ups in this department deal heavy blows to your score, so it is essential that you stay up-to-date.

3. Up Your Knowledge

Credit education is an integral part of the credit building process. Understanding how credit works and how it impacts your life will give you an advantage to building a great score. And an excellent credit score can make it easy to buy homes and vehicles as well as lower interest rates. Taking the time to study credit will yield impressive results in your finances in the long run. This is one of those credit hacks you absolutely need.

4. Use Your Credit

If you have a credit card, get another one. Use credit as much as possible and make sure that it is a credit that you can afford to pay. The more you use your credit and pay it off on time, the better it reflects on your FICO score. Make sure to keep monthly receipts to track your purchases; you do not want to let anything slip-up.

5. Be Mindful of Mortgages

Purchasing a home is a great experience that can help you boost your credit score. With that said, mortgages can also hurt you as long-term payment plans can weight your credit score down. The impact is not as severe as you would think, but it is something to be mindful of. Talk to a specialist about the subject and see what is right for you.

6. Unused Cards

A credit card that is open but has not been used in a while can hurt your credit score. Any remaining credit cards, then, need to be closed. Ensure you are staying on top of your credit cards and are keeping track of which ones you are using. Control is in your hands in this aspect.

7. Keep Records

Keeping records of purchases made and cards paid up-to-date can provide an advantage you would not believe. Having your finances in order allows you to see patterns of success and understand how to repeat them.

Maintaining an excellent credit score is about discipline and repetition. Be your own auditor and continuously check up on your progress. You will be glad you did.  

For more information about how to apply these credit hacks to your credit score, contact Go Clean Credit to get back on the right track. We have various different credit repair programs that are offered to help you overcome your unique credit situation. Real credit restoration is not a one size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.

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 to Get a Creditor to Remove a Late Payment

How to Get a Creditor to Remove a Late Payment

Late payments count toward your overall credit score, and they can hurt you even after they have been settled. That might not seem fair, but it is the truth of the matter. To be sure that late payments can no longer harm your score, in other words, they need to be removed. Removing a late payment can be a bit tricky, but professional creditors understand how to do so. Let’s look at the steps to take to get a creditor to remove a late payment from your credit history.

Do Late Payments Always Stay on Your Credit Report?

Late payments typically remain on your credit report for seven years. While they remain on your credit report, late payments can hurt your chances of getting loans. They can increase your interest rates, too. Getting rid of late payments, on the other hand, can help you boost your credit. It is essential that you monitor your report to ensure they are removed on time.

How to Remove Late Payments

Removing late payments will require a bit of craft and persistence, but it is entirely possible. Take a close look at the tips offered here and follow the one that best suits your situation. If all of them apply, that’s okay, too! In that case, follow all of them carefully and keep track of the steps you take. Remember that you want to keep monitoring your credit score to ensure the late payments have been removed.

Automatic Payments

It is possible to negotiate the removal of late payments by signing up for electronic payments on the account. This is a method that is beneficial to all parties involved. The company is guaranteed their payment and the offer shows goodwill on your behalf to stay on top of things. This is the most straightforward approach and should work so long as your relationship with the lender has not soured.

Goodwill Adjustments

Speaking of having a good relationship with the lender, a goodwill adjustment is another option. Removing late payments this way requires that you prove to the lender that your payment history is generally in good standing. Showing that you have only had a few slip-ups and writing a goodwill letter to the lender can help.

Point Out Inaccuracies

Look over your credit report and ensure there are no inaccuracies on it. Should you find any errors on your report, you must dispute them. The process can be lengthy, but if you stick to your guns, the late payment will be removed. Contact your creditor and inform them of any inaccuracies right away. The more informed you are regarding these matters, the better off you will be in the end.


Now you have a better idea how to get a creditor to remove a late payment from your credit history. The process can take some time, but it’s worth the effort. In no time, you will find yourself in a better position than where you started. Stay focused and review your reports often to stay on top of any changes.

For more information about how to get a creditor to remove a late payment, contact Go Clean Credit to get back on the right track. We have various different credit repair programs that are offered to help you overcome your unique credit situation. Real credit restoration is not a one size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.

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!