Today’s discussion is about credit repair.
We tend to get a lot of clients asking us “I’ve just discovered I got a great B credit score, I’ve been doing everything right, I haven’t missed any payments, why isn’t it grade A? Why isn’t it excellent?” Also for clients who had terrible credit in the past they want to know “What can I do to really boost up my credit score quickly? Other than being a good person, paying off my bills on time, is there something extra I could do to really help it along?”
This really boils down to credit repair, which is based on a premise that credit is calculated on a very specific mathematical formula, and for every credit account you have each different credit card company there is a different formula for that calculation.
There are 2 credit cards, which have similar limits. If you use them the same amount every month and you pay it off every month they could actually report a different score for you to Equifax and Transunion.
This could be because credit card A might only give you an optimal score only if you use 20% of your credit limit, if you use over that and nothing bad happens you’ll still get a good credit history out of that card, however you’re just not getting the optimal score that they could provide.
Inversely for credit card B they could give you an optimal score even if you use up to 80% of your credit limit, if you use less than that nothing bad happens, but you just won’t get the optimal score that the card can provide.
How to fix it:
So when you use credit repair you’ll get some specific instructions. They will let you know either within 60 or 90 days how many points on your credit you can recover by doing a specific series of steps. For example, on credit card A you might be requested to pay off $600, but on credit card B you might be requested to use another $800.
If credit repair is of interest to you talk with your mortgage coordinator or mortgage broker about credit repair and ask them what services they can provide you.
If you have any questions for us about credit repair, or how to improve your credit scores please contact us at 1-866-521-9557 or email at firstname.lastname@example.org.