How Many Points Does Your Credit Score Go Down When You Check It?

how many points does your credit score go down when you check it

Are you concerned about maintaining a healthy financial life? Everybody knows the importance of a high credit score. It’s like the ultimate game of adulthood. And it leaves you asking questions like, “How many points does your credit score go down when you check it?”

This is a smart strategy. After all, so many small actions trigger a score fluctuation. The last thing you want is to get declined for an important loan because of seemingly inconsequential errors. Cars, credit cards, home loans, and even the department store down the road, will check your credit when you apply. And each of these actions affects your scores.

In today’s post, we’re going to review some of the aspects of credit checks and uncover how many points does your credit score go down when you check it.

But first, we need to know about hard and soft inquiries. Let’s dive in…

The Difference Between Hard and Soft Inquiries

Soft inquiries don’t matter. You can forget they even exist if you want. They don’t hurt your credit card score at all.

Although these inquiries probably show up on your credit report, the lenders can’t see them. Soft inquiries don’t have anything to do with your credit card score. So, if you recently experienced a sudden credit card score drop, you can’t blame the soft inquiries.

Hard inquiries are the real punisher. They can really harm your credit card score if you aren’t careful. But let’s not get too panicked — yet.

Points You’ll Go Down for a Hard Inquiry

Yes, hard inquiries can negatively impact your credit card score. BUT — you shouldn’t see it go down more than five points. The real danger comes when you go on an application spree.

So, how many points does your credit score go down when you check it? Each application will cost you five points off your credit score. The solution? Don’t aimlessly apply for lines of credit.

But what about if you aren’t applying for loans… What if you just want to check your own credit score? Well, good news…

Checking Your OWN Credit Score is a Soft Inquiry

Most applications for a line of credit hit on your report as a hard inquiry. Yes, you read that right! Although this might not always be the case, it’s the typical experience.

Luckily, keeping track of your credit score won’t cost you a thing!

Checking your OWN credit score is a soft inquiry. That means it won’t negatively affect your score at all — which is great news! After all, the only way to spot a need for credit repair or growth is by knowing your report.

HELP! I Went on an Application Spree!!!

Earlier in this article, we mentioned an application spree. This is where an (often unknowing) consumer applies for SEVERAL lines of credit over the course of a month or so.

The result? An AWFUL surprise next time they see their credit report.

Don’t panic — there’s hope. If you’re experiencing the consequences of too many hard inquiries, we’re here to help. Contact us today so we can dive into your specific situation and begin planning a way to help you escape this frustration.

Credit Repair Software Reviews: Top 5 Software Solutions to Fix Your Credit

credit repair software reviews

A credit repair software works to improve your credit score. However, it’s hard to narrow down your options because many companies offer these services. For today’s article, we dug through credit repair software reviews to bring you these top five solutions you can trust.

This technology monitors and fixes errors on your report. As a result, your credit score increase, which makes it easier for you to access loans and mortgages. A credit repair software is easy to use, cheap, efficient, and it allows you to monitor your credit report at the comfort of your home.

Many scams and useless software exists. It’s important to find a reputable company. Or, when in doubt, choose a credit repair agency instead to take care of the heavy lifting for you.

Now, onto the top five picks for credit repair software in 2018…

1. Turbo Credit: Consumer Edition

It removes negative items and false information appearing on your credit report, fights identity theft, and has a TurboStop to legally stops calls from creditors.

“I wanted one that provides information on exactly what one needs to do to lift FICO scores, a breakdown of what banks really look at, and an easy way to dispute and remove errors off a credit report. This software had all these answers and more…” (Source)

Plus, there’s a 30-day money-back guarantee.

Learn more about Turbo Credit: Consumer Edition »

2. 700 Credit Repairs

They offer two primary services: digital credit disputer (software only), and digital score enhancer (software, online workbook, score analyzer and many more).

Where this software really stands apart is in its automated technology.

“Just want to give a huge THANK YOU to 700 Credit Repair!!!!! They repaired our credit to where we were able to get approved for our dream HOME! Thank you so much!!..” (Source)

Learn more about 700 Credit Repairs »

3. TurnScor

Their software works to improve bad credit scores, while their resources focus on training customers in gaining a deeper knowledge of finances and credit management.

“..I didn’t qualify to purchase because of my credit score. I signed up, used the software, and now I qualify to buy a Harley Davidson and it only took 6 months!”…” (Source)

Learn more about TurnScor »

4. Credit Aid

It repairs and improves credit score, removes negative items on your credit report, and even disputes bankruptcies. There’s also a compelling 100% money-back guarantee if your credit score doesn’t improve.

“I LOVE this Software! Prior to using it, I spent quite a bit of money on an expensive ‘credit repair company’ that did NOTHING but take my money! Credit-Aid Software has made it very easy for me to repair my own credit…” (Source)

Learn more about Credit Aid »

5. Credit Detailer

This is another provider focused on providing a solid software AND ongoing training to help their customers get better at finances. It’s easy to use and very affordable compared to other software. Plus, you can buy both Spanish and English versions.

“I called for help and Ken was just terrific! I started off with the trial version and went for the professional version to start my business and have been working smoothly ever since..”- Trish

Learn more about Credit Detailer »

How Many Points Does a Credit Score Go Up When a Collection is Removed?

how many points does credit score go up when a collection is removed

How many points does a credit score go up when a collection is removed? We know that even small oversights can cause huge damage to your report. So, it’s understandable that you’d be concerned.

And, without trying to be too ominous, you should be concerned.

High credit scores provide access to bank loans, higher mortgages, credit cards, and better interest rate. Some employer even run credit checks to vet potential employees.

As you can imagine, it’s important to know your credit score. In a survey from LendEDU, 25% of millennials don’t even know what a credit score is — 5% of them even believe it’s you’re waiting list spot for a credit card.

So, it’s safe to say that we’re getting into a bit of technical territory as we jump into collections. Let’s take a minute to review the basics.

What is a Collection Account?

When you don’t pay your debts, the company sends it to a collection agency. This can apply to credit cards, but also with medical bills or department store loans. The original company chooses to write off the debt as a loss, then sell it to the collection agency.

Lenders sometimes have unique policies, but as a general rule, accounts enter collections after 180-days of non-payment. At this point, the agency who purchased your debt from the lender will report the “collection” status of your account to the credit bureau.

How Does a Collection Account Affect My Credit?

Once an account enters collections, it will harm your credit score AND credit history. If at all possible, avoid letting an account ever enter this status because of the harsh consequences.

First, the instance stays on your credit report for 7 years from your first delinquency. That means creditors will see you as risky, and it will be difficult to increase your credit score during this time. It’s also going to significantly drop your score. If you have a score of 700, for example, expect a drop of around 100 points.

Should I Pay Off My Collection Debt?

If possible, negotiate a way to get the collection DELETED from your report. Sometimes agencies will do this if you agree to pay back the debt. Be careful when going this route, and seek out a bit of professional advice to avoid making matters worse.

Here are the basic steps for paying off a collection debt…

  1. Send a written request for settling the debt in exchange for deleting it from the report.
  2. Wait for a written response from the collector before taking any action.

You’re going to wait a while between step one and two, which will give you plenty of time to dive into the gritty details of what next. Know that the more of your debt you’re willing to pay, the greater chance you have of them removing it from your report.

How Many Points Does a Credit Score Go Up When a Collection is Removed?

Now that you have a solid understanding of collection accounts, the answer to how many points does credit score go up when a collection is removed becomes quite simple. After all, if the collection knocked your 710 score down by 100 points, you can expect to see many of those points return it’s been removed from your report.

It’s nearly impossible to give you a specific number because every report is unique. Instead, let’s move from this blog to an email or phone call and discuss your situation more…

You can reach out via email, or give us a call » 1-866-991-4885

If you’re struggling with debt and facing the credit consequences, consider getting professional help. Our team can guide you through the process of cleaning up your credit.

Private Student Loan Protections

private student loan

So, you’ve taken out a private student loan to pay for your college education. You are one of the thousands of students who have also chosen to finance their education.

You might have a plan for how you’ll tackle the threat of student debt; however, life is unpredictable which can make managing your private student loan difficult. Federal protections have made dealing with unplanned circumstances easier. Find out if you can take advantage of these protections.

Default

Handling bills and loan payments are challenging and defaulting on your loan could be harmful to your credit report, but consumer rights may protect you.

The Fair Credit Reporting Act gives borrowers the right to exclude a private student loan default from their consumer’s report. The borrower must successfully complete a loan rehabilitation program before they can request the exclusion.

Why is this important?

Consumer reports are reviewed when you apply for auto loans, submit job applications- even when you apply to rent an apartment! So, if you want to get out of mom and dad’s house, check with your lender to see if they offer a loan rehabilitation program.

Bankruptcy

Your co-signer tells you that they filed for bankruptcy. What happens after that?

The private student loan lender relies on the co-signer to pay the loan debt if the borrower defaults. If the cosigner declares bankruptcy, the lender could default your loan even if you are current on payments.The Truth in Lending Act protects borrowers against lender’s defaulting your loan if the co-signer is unable to fulfill their duty.

Unfortunately, this protection only applies to borrowers who extend their loan after November 20, 2018. The Lending Act protection does not extend to private student loans combined with other private student loans. Loans whose co-signer is the borrower’s spouse are not protected by the act.

So, if your co-signer tells you that they filed for bankruptcy, take relief in the fact that your loan is still secure.

Death

What happens to your private student loan if you or your co-signer pass away? It’s a question that most people don’t think to ask, but federal regulations have this problem answered for you.

Similar to the bankruptcy regulation, the Truth Lending Acts barred lenders from defaulting or accelerating payments if the cosigner passes away. Cosigners are also relieved of loan obligations upon the borrower’s death.

You may not have thought about how a death could affect your loan, but protections in place already have you covered!

Conclusion

Private student loans are a strategic way to fund your education!

Protections established by the Fair Credit Reporting Act and Truth in Lending Act can alleviate some of the stress that comes with private student loans. These acts allow borrowers to exclude negative information from their credit loan report, ensuring that loaners do not accelerate or default loan payments, and protecting co-signers.

Credit Score of 524: Loans, Improvement Tips & More

Having a credit score of 524 means that you have some work to do. Ranked squarely in the lowest tier of scores, you are facing elevated interest rates on any loans and credit you are able to obtain—or rejection from them all together.

There is confusion on how credit scores actually affect car and home loans and credit cards. Will the interest rates be too high for me? Will I just be rejected? Luckily, it’s all answered below.

1. Home Loans

For a first time home buyer with a credit score of 524, you will most definitely be fighting an uphill battle. The majority of loans will reject you outright as your score is lower than their usual threshold of 620 by almost 100 points.

If you do find a loan that is willing to take you, the lower your score, the more that your interest rate skyrockets. With a score that low, the amount of interest you pay on the house could be upwards of half the principal loan, a lofty price to pay for poor credit.

Increasing your score is going to be your best bet to getting a decent home loan. It may take a couple years to fix and it will be frustrating, but even 100 more points on your credit score can improve your chances drastically and knock an interest percentage upwards of 2%!

2. Auto Loans

Car loans are similar in terms of interest rates and possible rejection through conventional means, but a car loan will be at least easier to find. The rates may once again be too high for you to consider this a viable choice, though.

Using the average $27,000 dollars for a car loan and a 60-month loan, a score of 524 could land you an average APR of upwards of nearly 16% and an interest over the life of loan of nearly $12,000 extra dollars!

Once again, it is in your best interest to improve your score or you may fall victim to predatory lending.

3. Credit Cards

Credit cards are not going to be easy to come by, either. This is the unfortunate fact of having a low score. Honestly, obtaining an unsecured credit card will probably be impossible. However, unsecured credit cards, or ones where you must make a deposit to obtain, will be beneficial to improving your score.

Your score may even jump by opening the card. And if you pay off your debt on time every month, the number will continue to climb.

So What To Do?

You will need to improve your score to be put into a more comfortable position. You may be able to get loans, but the interest rates will be high and could nearly double your loan… Start with a secured credit card and work your way up and pay on time every month. You’ll be glad you did.

Let the experts at Go Clean Credit help you increase your score by more than 200 points! Our credit repair programs put you back on the path to financial success.  Contact Go Clean Credit today!

How Long Do Negative Items Stay on Your Credit Report?

So, you’ve gotten hit with a negative item on your credit report. Now you’re asking yourself, How long do negative items stay on your credit report? Worst case scenario? Negative items stay on your credit report for 7 years!

In today’s post, we’ll outline some different types of negative items and how long they stay on your report. It’s important to get these things removed if you can, but if that’s not possible, at least now you’ll know what to expect.

1. Late Payments

If you’ve been missing your payments regularly and have been more than 30 days later on some of them, you’ll experience negative hits on your credit score.

Falling behind on your bills is never a good idea. Delinquencies stay on your credit report for 7 years and can have a stronger impact if left unnoticed.

Make payments as quickly as possible, so that you can get back on track. Contact the credit bureaus and consult with them to take care of any leftover items. The negative items on your report will wear off over time, but you will have to explain your case clearly.

Late payments happen to even the most responsible borrowers. Try to work with your lender, explain the situation and see if there’s anything they can do to forgive your late payments.

2. Taking on Too Much Credit

This is a common problem that many people have gone through. We take on too much credit and can’t make the payments on them. A high-credit utilization alert can really start to sting after 30 days of non-payment.

If you have too many credit cards, loans, or payments to make then cutting them down is a good idea. It’s smart to use less than 30% of your credit limit. Don’t cross the limit over, as the compounding effects may derail your credit score.

Credit utilization is all about the balance on your accounts. So, as an example, if your only credit is a $1,000 credit card, make sure to keep the balance below $300 at all times.

3. Charge-Offs

Account charge-offs are a strong indicator of bad borrowing practices. If you don’t pay the owed amount in full as a part of your installments, then you might see a negative hit on your score.

Your lender may eventually give up after a few months of disorganized payments.

The charge-offs can stay for many years if left unnoticed. They can have a strong impact even if you’re practicing good creditworthiness years later. That’s why it’s important to clear out these negative hits early on.

Hire the Right Partners

Hiring the right consultants is the best way to ensure that you’re back on track.

Starting at just $99 a month, Go Clean customers can get access to a variety of credit related services. Whatever your needs or challenges, Go Clean is there for you.

Let the experts at Go Clean Credit help you increase your credit score by more than 200 points! Our credit repair programs put you back on the path to financial success.  Contact Go Clean Credit today!

What is Credit Utilization and Why Does it Matter?

What is Credit Utilization and Why Does it Matter?

Credit utilization is an important part of the credit score maintenance cycle. You want to make sure that you’re not shooting too high and using too much credit.

What is credit utilization?

Credit utilization is a simple ration that captures how much credit you’re using. E.g. if your limit on a single card is $5000, and you’re using $4500 of that your credit utilization is 90%.

This is bad news.

Your credit utilization should be around 30% if you want to maintain a good score.

You don’t want to borrow money, simply because it’s available. It’s important to be frugal in your investments and only take credit when necessary. You shouldn’t overspend and consume too much debt in one go.

Why does credit utilization matter?

A high credit utilization score tells the lenders that you’re burning too much cash on a single loan. Even though it within your rights to accrue that debt, you want to be under the limit at all times.

This is because if you’re late on your payments or have a missed payment in one month, your collective impact on your score will be incremental.

Credit utilization is usually calculated on your outstanding balances, so you should avoid going over 30%. Don’t reach your max limit as a general rule. There are however steps that you can take to ensure that you don’t go over your credit utilization limit.

Raising your credit limit

If you’re spending through about $3000 a month on your payments, and your credit limit is set at $5000, then you may be utilizing too much of it. You can request the financial institution involved to boost your credit limit to $10,000.

This may involve a hard inquiry which may reduce your score a little bit. But in the long-term, your credit score will increase as you’re not utilizing your complete line of credit.

The timing of credit bureau reporting

In general, most credit card companies report your balances and payments every month. If you can find out the exact date when they report it, you can pay off your balances on time. This will make the credit bureau think that you always have a positive balance.

Therefore, you should try to pay off as much as possible early on. This will also help establish a higher credit score after you’ve paid off your balance.

Setup alerts and pay mid-cycle

The best way to ensure that you’re not taking too much credit is to set up alerts from your lenders. Most automated systems can send you a text or email if you’re going above a certain limit. You can keep a track of your limits and ensure you’re not taking on too much credit.

You can pay off your monthly payments in the middle of the cycle. This is so that when your balance is reported each month, you can appear to be balance positive. This will help you establish a great credit score over time.

Let the experts at Go Clean Credit help you increase your score by more than 200 points! Our credit repair programs put you back on the path to financial success.  Contact Go Clean Credit today!

Does Freezing Your Credit Hurt Your Credit Score?

does freezing your credit affect your score

So, you’ve heard a bit about ways to protect yourself from identity theft. The research left you with the question, Does freezing your credit hurt your credit score?  The simple answer is no.

In today’s article, we’re going to explain what a credit freeze does and does not do, and why it shouldn’t affect your credit at all.

What Exactly is a Credit Freeze?

A credit freeze protects you against identity fraud and gives a simple way to control your assets and debt. Basically, it’s a security freeze that keeps identity thieves away from your account and has no impact on your credit score.  However, a credit freeze may keep you from being approved for a new card or loan.   It can also keep you from checking your FICO scores, as well as any credit file you may have. In other words, you don’t get access to them anymore.

When Should You Freeze Your Credit?

It’s a security measure that should only be executed when you suspect some wrongdoing. A couple of examples include:

  • If you think that someone might have stolen your identity.
  • If you received a number of unauthorized alerts on your card.

It’s a good idea to freeze your credit so that you can maintain your score and not have it reflect while you’re clarifying the misunderstanding with the banks.

You want to keep your credit profile as clean as possible. It proves you’re a trustworthy borrower and enables you to access lines of credit when you need them most. So, better safe than sorry; if you’re concerned about thieves, freeze your credit.

The Limitations and Reach of Credit Freezing

A credit freeze won’t affect any activity from a credit monitoring company or demote pre-screened offers of credit. That’s why it doesn’t have much of an impact on your everyday credit-focused activities.

You can still use your existing credit cards and continue using them normally.

Unfortunately, everything comes with a price. When you freeze your credit, you’ll face a few limitations. Most importantly, you won’t be able to open any new lines of credit.  Also, you can’t use your name to inquire about your credit, and you can’t submit any new credit applications.  This also means lenders won’t be able to check your credit because your credit is frozen.

Can I Still Use My Cards?

Some people hear the freeze and get afraid that they won’t be able to use their accounts. While that’s a valid concern, there’s nothing to worry about. You’re simply freezing any credit checks, and any new credit being opened in your name.

If you suspect that your credit card has been stolen, then freezing your credit won’t prevent the thieves from using your card.

In this case, you need to take action with your banks directly.  You can still carry out your loan and credit card payments as usual and report your activity to credit bureaus. There are no problems that arise there.

We hope this blog helped you resolve the question “does freezing your credit hurt your credit score?” If you have any questions, the experts at Go Clean Credit have an answer for you. Our experts can be reached at 1-866-991-4885.

How to Increase Credit Score by 200 Points

Having a low credit score can be detrimental to your financial health. Getting a loan, buying a car or a house can become more difficult if you don’t have good credit. You can increase credit score by 200 points or more if you follow the long-term strategies highlighted below.

Obtain a Copy of Your Credit Report

This is one of the most important steps when trying to increase credit score by 200 points. Obtain a comprehensive credit report for your account so you can have the data to conduct a deep dive into what’s hurting your score.

A 3-in-1 report is one of the most popular credit score reports that shows you your FICO score between a range of 300 and 850. Ideally, you want to keep your score above 700, as anything under 500 indicates that you’re not a trustworthy borrower.

Lenders like banks and credit card companies may not offer you favorable rates, and might even reject your application.

Look Out For Inaccurate Details in the Report

You need to find and fix the holes that make up your score. Many people find inaccuracies and mistakes when they evaluate their comprehensive report. Draft a letter to the agencies, or schedule an in-person meeting with a consultant who can help you resolve your errors.

If gone unnoticed for too long, your credit score may drop even more! That’s why it’s important to challenge erroneous information on your credit report and take action now.

Work With a Credit Score Consultant

A credit score consultant like Go Clean Credit can help you figure out what steps you need to take in order to increase your score. These could include restructuring your debt, making payments on time, or managing your savings vs. expenses on your account.

Consultants provide customized insights to help with your individual case. They can increase credit score by 200 points over time and provide real-world strategies that work.

Pay Off Your Debts on Time

Before taking on more debt, you should pay off your existing ones and make all payments on time. Frequently delayed payments can burn a hole right through your credit score. If you don’t fix this now, this could prevent you from obtaining a good rate on your next loan.

Paying off your credit cards, loans, car payments, etc. on time is the best way to increase your score significantly.

Get a Credit Booster Card

This is a smart way to boost your score long term. Get a credit card on your account and start making smaller monthly payments on it. Some good examples include things like rent, electric bills, etc. that can be paid monthly without much hassle.

You may not qualify for a regular card with a low score. However, you can easily obtain a prepaid credit card if you’re willing to make a small financial investment.

Let the experts at Go Clean Credit help you increase your score by more than 200 points! Our credit repair programs puts you back on the path to financial success.  Contact Go Clean Credit today!

How Much Does a Missed Payment Affect Credit Score?

How much does a missed payment affect credit score?

A missed payment as a one-time affair won’t destroy your credit. In fact, most places would consider it a normal part of your credit history. However, if you have a history of missed payments, it could cause real trouble for your score.

No one wants to ignore their financial responsibilities, but life happens. Unemployment throws off your income, unexpected emergencies tap into your savings… The list could go on and on.

The truth is, it doesn’t matter much whether you miss payments several times in a row, or in dispersed accounts over time. Too much of them will indicate that you’re an unreliable and inconsistent investment―not exactly the type of reputation you want while seeking access to more credit.

Financial institutions use your credit history to determine whether you’re a risky investment or not. If you can’t keep up with simple payments on the things you already owe, why would someone give you even more money?

The real question is, how much does a missed payment affect credit score?

A Tip To Prevent Missing Payments

It’s easy to think that someone offering you a line of credit is the same thing as someone giving you money. It’s really not. In fact, whether it’s credit cards or a loan, these types of things are financial obligations. Not gifts.

That’s why it’s important to contemplate the financial load of any credit card you’re taking into consideration.

If you aren’t ready for the burden, you’ll inevitably fall behind on payments. This becomes a vicious cycle that could put you in a bad situation.

Everyone Falls on Bad Times

Everyone knows that unexpected financial emergencies happen. You could fall into a health crisis, you may lose your job, or there might be a home improvement emergency at home.

But bad times aren’t a reason to shirk your financial obligations.

If you miss a payment on one or more of your credit lines, lenders will see you as a risky prospect. They may stop issuing you a loan or increase the rate if it hasn’t been locked in yet.

So, How Many Times is TOO Many?

Honestly, even one time is too many. If you have been more than 30 days late on your payment, your creditor may report it to the credit reporting agencies (CRA). After it is reported, it will show up on your credit report.

When it comes to FICO, a late payment will be evaluated on the basis of ‘how late’ it was. If you were 30 days late, it may not be that big of a deal. But anything more than that can add up incrementally. The problem gets exponentially worse the more you delay it.

According to FICO data, a 30-day late payment can cause a 90 to 100-point drop on a score of a consumer who’s leading around 780. This is why it’s so important to make payments on time so that your score can be ahead of the curve.

For someone who’s hovering at a 680, a 90-day credit card account could see a dip of 80 points if they’ve been late and hit with back to back delinquency issuances.

Late payments do add up over time, but it depends on the case. Don’t take someone’s advice on the matter and take it from the experts.  Contact us today if you’d like support repairing your credit score.