Here at CREDIT SERVICES OF AMERICA we focus on anything dealing with credit repair, debt settlement, student loan consolidation, and credit trade lines. Our ultimate goal is to remove as many negative remarks as possible off your credit report, with the objective of getting your score in the Excellent range. What many people don’t know is exactly how credit scores are composed, and therefore not knowing exactly how our services will greatly benefit them. Most consumers are unaware of the 5 categories that affect our score, which are payment history, amounts owed (also known as debt ratio), length of credit history, types of credit and new credit.
The biggest portion on how your credit score is calculated is by payment history. This makes up 35% of your overall credit score, obviously making it something we should all prioritize very highly. A perfect payment history is made up of all payments done on or before the due date. We have seen client’s scores drop up to 115 points with just one single late payment. This is why we always recommend staying on top of your bills, checking mail often, and considering automatic payments.
The second largest portion on how your score is calculated is by amounts owed, also known as debt ratio. Debt ratio is calculated by taking how much you owe by how much creditors lend you. For example, if a bank issues you a credit card for $1,000, and you owe $900, you are at a 90% debt ratio. We here at Credit Services of America recommend our clients to keep this debt ratio under 10%,reason being that anything of 10% debt ratio starts affecting your score.
15% of your credit score is length of credit history. In other words, how long have your accounts been opened for. An account that will report positively on your credit report is an account that has been opened for longer than 12 months. As you can see, these 3 portions of your credit report encompass 80% of your credit reports, a huge part that we as consumers must be very careful with. 10% of our credit score is calculated by new accounts that we have acquired, and the last 10% is types of credit. We do recommend clients to have a variation of accounts consisting of 3-4 revolving accounts, 1-2 installment loans.
What makes us great here at Credit Services of America is that we help you with all aspects of your credit report. We help eliminate any negative remarks off your credit report, including late payment by disputing all these negative remarks. We include debt validations that helps remove debts from credit reports, debt settlements that save our clients a great amount of money (if it even gets to this point), and credit trade lines that have a perfect payment history, debt ratio of less than 10%, and has been opened longer than 12 months! As mentioned earlier, these 3 criteria make up 80% of your credit score, giving our clients a Score Boost on their credit!!
A Goal without a Plan is just a Wish. Give us a call TODAY at 844-FIX-URCR or click on the following link creditservicesofamerica.com to schedule your FREE consultation and create your personalize plan to achieve your credit and debt GOALS!
*Individual results may vary. Please call for more details and to discuss your own individual situation.