Credit Score of 578: What It Means For Your Life

Credit Score of 578: What It Means For Your Life

So your credit score is 578 – is that good or bad? What does a credit score of 578 say about you? Your credit score reflects your ability to fulfill fiscal responsibility. The lower your credit score is, the larger your risk of having to make a big deposit before making home and auto purchases.

A credit score of 578 falls under the “Poor” FICO category. Scores below 619 often receive the most severe interest rates and terms on credit and loans. The effects can damage a person’s pursuit of happiness. You want to improve your credit score so that you are paying less for borrowing money.

What does having a credit score of 578 mean for home loans, car loans, and credit cards? How do you improve a 578 credit score?

Credit Score of 578: Home Loans

Is it possible?

PROBABLY NOT — For most mortgages, you need to be above a 620 credit score.

Generally speaking, with a score under 578, you may not qualify for mortgages with many lenders. If you do, you should anticipate interest rates ranging from 5-6%. There are a few loans out there, such as those administered by the Federal Housing Administration (“FHA loans”). However, it can still be tough.

The frustration gets real when it comes to housing loans.

Credit Score of 578: Car Loans

Is it possible?

YES — buying a car with a credit score of 578 is still possible, but the interest rate can be pretty high. People with bad credit are always offered higher interest rates than someone with a score only 70 points higher.

The average amount borrowed by auto buyers in 2018 has risen to a record high of $31,099. Here are the cost differences for 3 common types of auto loans accessible in myFICO’s loan savings calculator — 36-month, 48-month, and 60-month new auto loans — between someone with a credit score of 578 and someone with a score of 648.

Loan Type Credit Score Annual Rate Monthly Payment Total Added Cost
36-month new auto 578 15.867% $1,091 $2,986
648 10.334% $1,008
48-month new auto 578 15.865% $879 $4,080
648 10.364% $794
60-month new auto 578 15.938% $755 $5,266
648 10.438% $667

 

Can you believe that a 70-point difference in credit scores results in a difference of $5,266 in auto payment? Don’t let your wallet bleed. If your score changed to a 648 — just a 70-point improvement — you would save thousands of dollars.

Credit Score of 578: Credit Cards

What’s the best credit card for a score of 578?

OPTIONS ARE OUT THERE — If your credit score is a 578, you are only a little short of an average score. It is possible to qualify for an unsecured or secured credit card.

Here are a few recommendations:

Card Name Annual Rate Annual Fee Secured/Unsecured
Credit One Bank Visa 17.49% – 25.49% (Variable) $99 Unsecured
Milestone Gold Mastercard 23.90% $35-$99 Unsecured
Open Sky Secured Visa 18.64% (Variable) $35 Secured
Discover it® Secured Card 24.49% (Variable) $0 Secured

 

How To Improve A Credit Score of 565

There are many reasons to get started, and there are simple ways to go about it.

  1. Be smart when shopping for a loan. Applying for several loans or credit cards in a row can drastically hurt your score. If you pace out your loan shopping in a three-week period, for example, there’s a good chance it won’t count against you.
  2. Pay back your credit on time. Your credit score reflects how well you handle your money and how likely you are to repay a creditor, on time and within terms. Let your credit score communicate your reliability.

You can do it!

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!

Fact or Fiction? 5 Myths About Credit Scores To Watch Out For

Fact or Fiction 5 Myths About Credit Scores To Watch Out For

There are plenty of misconceptions out there about credit scores. Many of which can severely damage yours, if you’re not careful. We have compiled 5 myths about credit scores so you don’t fall victim and end up with a negatively impacted score.

5 Myths About Credit Scores To Watch Out For

1. Closing a credit account will help my score

You might think that closing a credit account shows responsibility. What’s actually happening, though, is you are decreasing your overall credit limit. When you spend money you end up closer to your spending limit, which does not look great to lenders or the credit bureaus. If you really want to close an account, remove a newer one. Thirty-five percent of your FICO credit score is based your credit history, including the average length of credit history across all of your accounts. Removing an old account decreases the average length of your credit history, which is why you should eliminate newer ones first.

2. When you pay off a negative record, it’s taken off your report

If only you could get rid of a negative record that easily. Unfortunately, things such as collection accounts and late payments remain on your report for seven years from the date they were first delinquent. In the end, when you pay off the account, it only shows up as “paid.”

3. All three credit scores are the same

There are three major credit bureaus: Experian, Equifax and TransUnion. Each of these bureaus will give you a different credit report that will have a different score. Not all information is sent to all three and they don’t share information with each other, which is why they often show different scores. This is why it’s a good idea to take advantage of the free credit check you get once a year from each of the major bureaus so you can make sure there are no errors in any of the reports.

4. Not having a credit card means you’ll have good credit

It’s actually quite the contrary. Having credit cards and being able to manage them plays a big role in calculating your score. Having these accounts helps you build credit history as well, which is something else you need to help boost your credit score. Creditors and lenders like seeing that you have and can manage credit cards. When you don’t have any, they will likely see you as a higher risk than those who do have credit cards.

5. Co-signing has no risks

Perhaps a child or a family member has asked you to co-sign for them on something because they don’t have enough (or have very poor) credit history. You offer to help them because you don’t have anything to worry about, right? Not true. If they fail to make their payments on time, your credit is going to take the hit along with theirs. Once your name is on the loan, you take on all the risks that come with it. Even if it’s someone you know and love, be cautious when co-signing if you have good credit.

Do you have anymore myths about credit scores you’d like to add? To enlist the help of a trustworthy, effective credit repair company, call us today at 1-866-991-4885!


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 Often Should I Check My Credit Score?

how often should I check my credit score

You know your credit score is a key part of having a strong financial future. It helps you get great interest rates for loans, lower finance charges on your credit card, and so much more. With so much riding on a credit score, we’re answering the question, “How often should I check my credit score?”

How Often Should I Check My Credit Score?

You should check your credit score at least once a year, unless you have a reason for reviewing it for other reasons. Each credit bureau offers you one free credit report for the year, so definitely take advantage of that. Checking your score annually allows you to make sure the information on each of the three reports is correct. The bureaus do not share information with each other. Which means it is always possible that one of the credit reports could have a mistake even if the others do not.

Reasons to check your credit score more often

If you apply for credit for something such as a mortgage or a car loan, lenders are going to pull your report to check your score. Doing so will help them determine whether or not they can give you the loan and at what interest rate they can give it to you. In this case, it’s not a bad idea to check your credit score on a regular basis. Now, when it comes time to apply for  the loan, there will be no surprises. Soft inquiries don’t hurt your credit, so you don’t have to worry about pulling your credit report too often.

Another reason to check your score more often would be if you’re trying to improve a bad credit score. By checking your score regularly, you can see how you’re doing and see what is helping you improve your score the most so you know what you need to keep doing. You can sign up for one of these credit monitoring services to help you check in on your credit report.

It is very important to monitor  your score on a regular basis to make sure nothing has drastically changed. Especially when you think you may have been a victim of identity theft or had your information compromised in a data breach. If you are a victim of identity theft, it’s important to know how identity theft affects your credit score. It is also important to know the steps to take if you’ve been the victim of identity theft.

If you’ve recently divorced, you will want to make sure your ex-spouse is making their share of the payments or, in general, is not hurting your credit. Also, if you’re in the job market, employers might check your credit as a part of the employment process.

How often is too often?

Checking your credit score every day might be a little too often. Although it is possible to do so, it will only potentially lead to obsessing over it. You will never see any major changes overnight. Besides, lenders understand that small, insignificant changes will happen daily as things update. They know the important ones happen over longer periods of time. Daily checks also won’t help you see the trends in your score. Giving it more time to have significant changes will allow you to see any trends. Small changes are only meaningful in a credit score when you are right on the line between the good and bad sides of the credit score range. Otherwise, if you are sitting comfortably within a range, small changes won’t have much impact.

Have you ever asked, “How often should I check my credit score?” Is there anything else you’d like to know? Give us a call today at 1-866-991-4885!


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.

Credit Score of 535: Impact on Car Loans, Home Loans & Cards

credit score of 535

Is a credit score of 535 good or bad? What does a credit score of 535 mean?

score-chartBrace yourself for some bad news… If you have a credit score of 535, you have what’s considered “poor” credit and are in need of credit repair ASAP. As a general rule, credit scores below 619 receive the worst interest rates on home loans, auto loans and credit. The effects can really take a toll on a person’s life – and it might be worse than you think.

What does having a credit score of 535 mean for home loans, car loans and credit cards? How do you improve a 535 credit score? Is it possible to get a loan with a credit score of 535? We will answer all of those questions and more—so read on.

Credit Score of 535: Car Loans

Buying a car with a credit score of 535 is possible, but you’re most likely going to have an extremely high interest rate. People with bad credit – if approved for a loan – are always offered higher interest rates than someone with a credit score even 80 points higher than their score. What is the interest rate for a credit score of 535 on a car loan?

The average amount borrowed by car buyers is $27,000 – according to Melinda Zabritski, Experian’s senior director of automotive credit. When you factor in the three common types of auto loans available in myFICO’s loan savings calculator – 36-month new auto loan, 48-month new auto loan and a 60-month new auto loan – you’ll get a good idea of how much more an auto loan will cost for someone with a credit score of 535 versus a credit score of 615.

Let’s take a closer look:

Loan Type Credit Score Rate Payment Added Cost
36-month new auto 615 13.625% $918 $0
535 14.765% $933 $539
48-month new auto 615 13.65% $733 $0
535 14.731% $748 $704
60-month new auto 615 13.71% $624 $0
535 14.783% $639 $904

So you’re telling me that an 80-point difference in credit scores results in a difference of $904—for the same car?

Yes, that’s exactly right. Getting a car loan with a 535 credit score is going to cost you a lot more. On a 36-month new auto loan, it’ll cost you $539 more. On a 48-month, $704 more. On a 60-month auto loan, it will cost you $904 more.

In other words, if your score changed to a 615—just an 80-point improvement—you would save quite a bit of money on your loan. It’s worth it to pay a company like Contact Go Clean Credit to restore your credit before you take a test drive.

Credit Score of 535: Credit Cards

What’s the best credit card for a score of 535? Unfortunately, if your credit score is a 535, you will not qualify for an unsecured credit card.

In other words, you will have to make a deposit to open up a credit card.

Any credit score above 600 may qualify for an unsecured card – depending on the type of credit card you’re applying for. But if your credit score starts with a “5” and ends in two numbers (“35”), then you will only qualify for a secured credit card.

What is a secured credit card? It means that you will be required to make a minimum deposit in order to open your credit card. Go Clean Credit continually evaluates credit offerings and currently recommends these Secured Cards for people with a credit score of 535.

We have seen up to a 40-point increase in credit score just by opening one of these cards. What happens to your APR for a credit score of 535? Here’s a chart illustrating the differences between annual fees and interest rates between someone with good credit and a credit score of 535.

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 535 Credit Score 23% $5,000 $7,856

Credit Score of 535: Home Loans

Let’s say you are a first-time homebuyer with a credit score of 535. Can a credit score of 535 buy a house?

For most mortgages you need to be above a 620 credit score, but there are a few loans out there that go lower for FHA. However, other parameters get harder (life debt to income), so it makes it pretty hard to qualify below 620.

Let’s say that you may qualify for a FHA loan with a credit score of 535. As you’ll see in the charts below, a low FICO score increases the amount of money you will end up spending on a loan throughout the course of its life.

Note: The 30-year fixed jumbo home mortgage APRs are estimated based on the following assumptions. FICO scores between 620 and 850 (500 and 619) 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 535 Credit Score 5.90% $1,780 $105,480

So, can a credit score of 535 get a mortgage? Maybe. But is it worth it?

Getting a mortgage with a credit score of 535 will add an extra $105,480 over the course of the loan than someone with a 721 credit score. The interest rate for a credit score of 535 will increase the monthly mortgage payment by $104 more than someone with a score 75 points higher, at a credit score of 610.

How To Improve A Credit Score of 535

Just how bad is a credit score of 535? As we’ve seen in the sections above, this score impacts every aspect of your financial life. Mortgages, auto loans and credit card interest rates are all dramatically higher than they would be if you had moderate credit.

If you would like to improve your credit score of 535, there are a few ways you can go about it.

1) Read this blog post on How To Improve Your Credit Score In 30 Days. We list simple tips in this blog post like paying down revolving balances to less than 30% and other tips that will improve your score quickly.

2) Read this blog post on what NOT to do when repairing credit. The last thing you want to do is move backwards in your efforts to improve your credit situation.

3) 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.

Credit Score of 585: Home Loans, Auto Loans & Credit Cards

credit score of 585

Is a credit score of 585 good or bad? What does a credit score of 585 mean?

score-chartBrace yourself for some bad news… If you have a credit score of 585, you have what’s considered “poor” credit and are in need of credit repair ASAP. As a general rule, credit scores below 619 receive the worst interest rates on home loans, auto loans and credit. The effects can really take a toll on a person’s life – and it might be worse than you think.

What does having a credit score of 585 mean for home loans, car loans and credit cards? How do you improve a 585 credit score? Is it possible to get a loan with a credit score of 585? We will answer all of those questions and more—so read on.

Credit Score of 585: Car Loans

Buying a car with a credit score of 585 is possible, but you’re most likely going to have an extremely high interest rate. People with bad credit – if approved for a loan – are always offered higher interest rates than someone with a credit score even 80 points higher than their score. What is the interest rate for a credit score of 585 on a car loan?

The average amount borrowed by car buyers is $27,000 – according to Melinda Zabritski, Experian’s senior director of automotive credit. When you factor in the 3 common types of auto loans available in myFICO’s loan savings calculator – 36-month new auto loan, 48-month new auto loan and a 60-month new auto loan – you’ll get a good idea of how much more an auto loan will cost for someone with a credit score of 585 versus a credit score of 665.

Let’s take a closer look:

Loan Type Credit Score Rate Payment Added Cost
36-month new auto 665 6.677% $830 $0
585 14.765% $933 $3,714
48-month new auto 665 6.699% $643 $0
585 14.731% $748 $5,038
60-month new auto 665 6.75% $531 $0
585 14.783% $639 $6,468

So you’re telling me that an 80-point difference in credit scores results in a difference of $6,468—for the same car?

Yes, that’s exactly right. Getting a car loan with a 585 credit score is going to cost you a lot more. On a 36-month new auto loan, it’ll cost you $3,714 more. On a 48-month, $5,038 more. On a 60-month auto loan, it will cost you a whopping $6,468 more.

In other words, if your score changed to a 665—just an 80-point improvement—you would save thousands of dollars on your loan. It’s worth it to pay a company like Contact Go Clean Credit to restore your credit before you take a test drive.

Credit Score of 585: Credit Cards

What’s the best credit card for a score of 585? Unfortunately, if your credit score is a 585, you will not qualify for an unsecured credit card.

In other words, you will have to make a deposit to open up a credit card.

Any credit score above 600 may qualify for an unsecured card – depending on the type of credit card you’re applying for. But if your credit score starts with a “5” and ends in two numbers (“85”), then you will only qualify for a secured credit card.

What is a secured credit card? It means that you will be required to make a minimum deposit in order to open your credit card. Go Clean Credit continually evaluates credit offerings and currently recommends these Secured Cards for people with a credit score of 585.

We have seen up to a 40-point increase in credit score just by opening one of these cards. What happens to your APR for a credit score of 585? Here’s a chart illustrating the differences between annual fees and interest rates between someone with good credit and a credit score of 585.

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 585 Credit Score 16% $5,000 $3,240

Credit Score of 585: Home Loans

Let’s say you are a first-time homebuyer with a credit score of 585. Can a credit score of 585 buy a house?

For most mortgages you need to be above a 620 credit score, but there are a few loans out there that go down to 585 for FHA. However, other parameters get harder (life debt to income), so it makes it pretty hard to qualify below 620.

Let’s say that you may qualify for a FHA loan with a credit score of 585. As you’ll see in the charts below, a low FICO score increases the amount of money you will end up spending on a loan throughout the course of its life.

Note: The 30-year fixed jumbo home mortgage APRs are estimated based on the following assumptions. FICO scores between 620 and 850 (500 and 619) 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 585 Credit Score 5.36% $1,676 $68,040

So, can a credit score of 585 get a mortgage? Maybe. But is it worth it?

Getting a mortgage with a credit score of 585 will add an extra $68,040 over the course of the loan than someone with a 721 credit score. The interest rate for a credit score of 585 will increase the monthly mortgage payment by $79 more than someone with a score 75 points higher, at a credit score of 660.

How To Improve A Credit Score of 585

Just how bad is a credit score of 585? As we’ve seen in the sections above, this score impacts every aspect of your financial life. Mortgages, auto loans and credit card interest rates are all dramatically higher than they would be if you had moderate credit.

If you would like to improve your credit score of 585, there are a few ways you can go about it.

1) Read this blog post on How To Improve Your Credit Score In 30 Days. We list simple tips in this blog post like paying down revolving balances to less than 30% and other tips that will improve your score quickly.

2) Read this blog post on what NOT to do when repairing credit. The last thing you want to do is move backwards in your efforts to improve your credit situation.

3) 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.

Credit Score of 555: Home Loans, Auto Loans & Credit Cards

credit score of 555

Is a credit score of 555 good or bad? What does a credit score of 555 mean?

score-chartBrace yourself for some bad news… If you have a credit score of 555, you have what’s considered “poor” credit and are in need of credit repair ASAP. As a general rule, credit scores below 619 receive the worst interest rates on home loans, auto loans and credit. The effects can really take a toll on a person’s life – and it might be worse than you think.

What does having a credit score of 555 mean for home loans, car loans and credit cards? How do you improve a 555 credit score? Is it possible to get a loan with a credit score of 555? We will answer all of those questions and more—so read on.

Credit Score of 555: Car Loans

Buying a car with a credit score of 555 is a possibility, but you’re most likely going to have to deal with an extremely high interest rate. People with bad credit – if approved for a loan – are always offered higher interest rates than someone with a credit score even 80 points higher than their score. What is the interest rate for a credit score of 555 on a car loan?

The average amount borrowed by car buyers is $27,000, according to Melinda Zabritski, Experian’s senior director of automotive credit. When you factor in the three common types of auto loans available in myFICO’s loan savings calculator — 36-month new auto loan, 48-month new auto loan and a 60-month new auto loan — you’ll get a good idea of how much more an auto loan will cost for someone with a credit score of 555 versus a credit score of 635.

Let’s take a closer look:

Loan Type Credit Score Rate Payment Added Cost
36-month new auto 635 9.305% $862 $0
555 14.766% $933 $2,535
48-month new auto 635 9.325% $676 $0
555 14.774% $748 $3,469
60-month new auto 635 9.394% $566 $0
555 14.786% $639 $4,419

So you’re saying that an 80-point difference in credit scores results in a difference of $4,419—for the same car?

Yes, that’s exactly right. Getting a car loan with a 555 credit score is going to cost you a lot more. On a 36-month new auto loan, it’ll cost you $2,535 more. On a 48-month, $3,469 more. On a 60-month auto loan, it will cost you a whopping $4,419 more.

In other words, if your scored changed to a 635—just an 80-point improvement—you would save thousands of dollars on your loan. It’s worth it to pay a company like Contact Go Clean Credit to restore your credit before you take a test drive.

Credit Score of 555: Home Loans

Let’s say you are a first-time homebuyer with a credit score of 555. Can a credit score of 555 buy a house?

For most mortgages you need to be above a 620 credit score, but there are a few loans out there that go down to 555 for FHA. However, other parameters get harder (life debt to income), so it makes it pretty hard to qualify below 620.

Let’s say that you may qualify for a FHA loan with a credit score of 555. As you’ll see in the charts below, a low FICO score increases the amount of money you will end up spending on a loan throughout the course of its life.

Note: The 30-year fixed jumbo home mortgage APRs are estimated based on the following assumptions. FICO scores between 620 and 850 (500 and 619) 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 555 Credit Score 5.90% $1,780 $105,480

So, can a credit score of 555 get a mortgage? Maybe. But is it worth it?

Getting a mortgage with a credit score of 555 will add an extra $105,480 over the course of the loan than someone with a 721 credit score. The interest rate for a credit score of 555 will increase the monthly mortgage payment by $183 more than someone with a score 75 points higher, at a credit score of 630.

Credit Score of 555: Credit Cards

What’s the best credit card for a score of 555? Unfortunately, if your credit score is a 555, you will not qualify for an unsecured credit card.

In other words, you will have to make a deposit to open up a credit card.

Any credit score above 600 may qualify for an unsecured card – depending on the type of credit card you’re applying for. But if your credit score starts with a “5” and ends in two numbers (“55”), then you will only qualify for a secured credit card.

What’s a secured credit card? It means that you will be required to make a minimum deposit in order to open your credit card. Go Clean Credit continually evaluates credit offerings and currently recommends these Secured Cards for people with a credit score of 555.

We have seen up to a 40-point increase in credit score just by opening one of these cards. What happens to your APR for a credit score of 555? Here’s a chart illustrating the differences between annual fees and interest rates between someone with good credit and a credit score of 555.

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 555 Credit Score 23% $5,000 $7,856

How To Improve A Credit Score of 555

Just how bad is a credit score of 555? As we’ve seen in the sections above, this score impacts every aspect of your financial life. Mortgages, auto loans and credit card interest rates are all dramatically higher than they would be if you had moderate credit.

If you would like to improve your credit score of 555, there are a few ways you can go about it.

1) Read this blog post on How To Improve Your Credit Score In 30 Days. We list simple tips in this blog post like paying down revolving balances to less than 30% and other tips that will improve your score quickly.

2) Read this blog post on what NOT to do when repairing credit. The last thing you want to do is move backwards in your efforts to improve your credit situation.

3) 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.

How Many Hard Inquiries Will Affect Your Credit Score?

How Many Hard Inquiries Will Affect Your Credit Score

You might be asking yourself: “How many hard inquiries will affect your credit score?” To delve into the answer, we will take a closer look at what inquiries are, the difference between hard and soft inquiries, and how it might affect your credit score.

How Many Hard Inquiries Will Affect Your Credit Score?

What Are Inquiries?

When you apply for credit, you allow lenders to ask for your credit report from a bureau. When you check your credit report after that, you might see that credit inquiries are listed. You may also see listed there inquiries by businesses that you’re unaware of. However, the only kinds of inquiries that count toward your FICO Score are the ones resulting from your new credit applications.

Applying for credit can have an impact that varies based on each person’s unique credit history. For the most part, credit inquiries have only a minor impact on FICO Scores. One additional credit inquiry will typically dock fewer than five points off the FICO Scores.

Inquiries can have a larger impact if you have few accounts or a short credit history. Many inquiries also means more risk. Statistically, anyone with six inquiries or more on their credit reports can be up to 8 times more likely to declare bankruptcy than those with zero inquiries.

While inquiries can play a part in assessing risk, they play only a minor part. More crucial factors for your credit score? How well you pay your bills on time, as well as your overall debt burden that shows up on your credit report. So, how many hard inquiries will affect your credit score?

Hard vs. Soft Inquiries

Hard inquiries typically happen when a lender or credit issuer, checks your credit report when making a decision regarding lending. They usually take place when you apply for a loan, credit card or mortgage. Furthermore, you typically need to authorize them.

Hard inquiries can lower your credit score by a couple of points and might remain on your credit report for two years. Luckily, as time goes on, the damage to your credit score typically decreases or vanishes altogether—often even before the hard inquiry disappears from your report.

Inquiries are labeled as either “hard” or “soft.”

When you apply for credit, every hard inquiry can drop your credit score by a few points. However, when you shop around for auto, student or mortgage loans in a short time frame, it leads to a single inquiry. Thus, this lessens the damage to your score from having several credit checks.

On the other hand, your score won’t be impacted by a soft inquiry. This type of inquiry can occur when you get a copy of your own credit report. (You can check your own credit history as many times as you’d like, and it won’t impact your score.) This is because you are not viewed as looking for new credit. Rather, you are demonstrating responsible credit management practices. Soft inquiries will also not appear for lenders who pull your credit history.

Banks and other institutions, meanwhile, do see hard inquiries. A lender’s inquiry usually means a consumer is taking on additional debt, which can result in extra credit risk and a lower credit score. For someone with a strong credit history, zero delinquencies, and so forth, an inquiry may have no effect on your score. For someone with late payments or other major credit issues, an inquiry can affect the score by a few points.

Here’s where the question “how many hard inquiries will affect your score?” comes in. Those hard inquiries can accumulate.

 

A single hard inquiry has a minor impact on a credit score, but that impact multiplies with every extra inquiry. Thus, consumers must avoid applying for multiple new credit or loan accounts over a short window of time, to help ensure that they don’t appear desperate for credit to lenders.

How Many Hard Inquiries Will Affect Your Credit Score?

Even if inquiries cause a one-point change in your score, they will be listed as a factor that affects your score.

To avoid credit score damage from multiple hard inquiries over a short time, scoring models recognize that borrowers often “shop around” for the best loan. Seeking a mortgage, auto or student loan may cause several lenders to request your credit report, despite the fact you are only looking for one loan.

Inquiries for mortgage loan and auto loan purposes in a certain period of time—usually 14 days—counted as a single inquiry by most scoring systems. For those purposes, a limit to inquiries does not exist.

While auto, mortgage and student loan applications over a short period of time are treated as one single inquiry, that is not the case for credit cards.

Therefore, every new credit card inquiry can perhaps hurt your credit score (although it’s by less than 5 points each for the most part). Don’t randomly apply for new credit cards. Rather, when credit card shopping, do your homework. Compare rates, terms and features offered by lenders. Then, only apply for the card(s) that best meet your personal needs.

Credit inquiries generally won’t prevent you from borrowing. As long as your report displays a clean record of timely payments, low debt levels and is free from damaging errors, don’t worry about having your credit checked once in awhile.

Need to know more about how many hard inquiries will 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 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.

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.

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.