How does credit repair help fix my credit score?
We live in a society of "if it's in writing, it must be true". This certainly applies to your credit score, as well. Lenders, insurance companies and potential employers make quick judgments about you based on your credit score. This score is a reflection of how you manage your finances and whether you pay your bills on time. Because of the importance of this number to lenders, you want your credit score to be the very best it can be.
Your FICO® Score uses a formula that takes into account several factors. Payment history makes up 35%, total debt you owe is 30%, the length of your credit history accounts for 15%, new credit 10%, and type of credit used accounts for 10%. You are given extra points based on good bill-paying practices and you have points taken away for paying bills late, using credit cards to their limit, and of course, major financial upsets such as bankruptcy.
Furthermore, recent late payments will have a greater negative effect on your score than late payments that occurred many years ago. And the longer your payments are past due, the greater the negative effect on your score. For example, your score will not be as badly damaged with one payment that is 30 days late, compared to several payments that are 60 days or more late.
A major problem with credit scoring is that it is not unusual to find negative information on your credit reports that is inaccurate. This inaccurate information will lower your score, which in turn, can result in higher interest rates on new loans and higher premiums from insurance companies.
The good news is that you do have the ability to question any information on your credit reports that you feel may be inaccurate, untimely, misleading, incomplete, ambiguous, unverifiable, biased or unclear and removing this questionable negative information can add extra points to your credit score, putting you in a better negotiating position when seeking new loans. Ideally, you want your credit score to be 760 or higher to receive the best rates available.
Disputing the questionable negative information on your credit reports can be a time consuming and daunting task. Unless you are familiar with the process of how to correct errors and negative information, you may find yourself in over your head. By turning to the experts at Lexington Law, you will have the leading provider of credit correction services on your side. For the past 25+ years, Lexington Law has assisted over 1 million clients in disputing the questionable negative information in their credit reports.