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Understanding Your Credit

Knowledge is power. Learn how your score is calculated, how to improve it, and what your rights are under the law.

What is a Credit Score?

A credit score is a three-digit number, typically ranging from 300 to 850, designed to represent your credit risk, or the likelihood you will pay your bills on time.

Lenders use this number to determine whether to approve you for a loan, mortgage, or credit card, and what interest rate you will be charged. The most commonly used scoring model is the FICO® Score, which breaks your credit profile down into five key categories.

FICO Score Breakdown

Payment History
35%
Amounts Owed
30%
Length of Credit History
15%
New Credit
10%
Credit Mix
10%
FICO ® SCORE

How We Remove Negative Items

The Fair Credit Reporting Act (FCRA) dictates that credit bureaus must report information that is 100% accurate, complete, and verifiable. If an item fails to meet these criteria, it must be removed.

We leverage these consumer protection laws by analyzing your report for errors, inconsistencies, and compliance violations. We draft custom, legally binding dispute letters challenging the bureaus and creditors to prove the accuracy of collections, late payments, charge-offs, bankruptcies, and more. When they fail to verify the data within 30 days, the negative item is deleted by law.

Tips to Improve Your Score

01

Pay on Time, Every Time

Payment history makes up 35% of your score. Set up autopay for minimum balances so you never miss a 30-day reporting window.

02

Keep Balances Low

Try to keep your credit card utilization below 30% of your total limit. Paying down revolving debt is the fastest way to boost your score.

03

Don't Close Old Cards

Closing an old account reduces your available credit and shortens your average credit age. Keep old, no-fee cards open and active.

How Long Items Stay on Your Report

Negative Item Reporting Time
Late Payments 7 Years
Collections / Charge-offs 7 Years
Foreclosures 7 Years
Chapter 13 Bankruptcy 7 Years
Chapter 7 Bankruptcy 10 Years
Hard Inquiries 2 Years

*We can legally challenge these items to have them removed earlier if they contain inaccuracies.

Information That Cannot Be Included

By law, certain personal information cannot be factored into your credit score, protecting you from discrimination. The following data is completely excluded from your FICO calculation:

Race or Color
Religion
National Origin
Sex or Gender
Marital Status
Age or Salary

READY TO START?

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  • Free 30-minute session
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  • Walk away with a clear action plan

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