Your credit report contains errors!
Every month millions and millions of pieces of data arrive at the credit bureaus to be posted. Most of the time there are 8-10 errors. A misspelled name, a mixed-up account in the lenders’ records, a “junior” that should have been “senior” suffix and more can get someone else’s data on your report.
Often, the bureaus may not have the same information. This should not be the case. Remember, they compete for business both into and out of their files. Lenders may only report to one bureau and not the other two. Even more severe is when each bureau has varying information. This should be a red flag!
If you see anything you don’t recognize as yours, that is more than seven years old, or something is missing, make sure you begin disputing these items. Credit Services of America can assist you in properly addressing these items.
Balances are too high.
Credit Services of America suggests that in a credit building phase your revolving credit card balance(s) should be not more than 10%. Making above the minimum payment on an unspecified number of cards on which you are carrying balances is nice but if the interest being charged is making your balances go up, you are losing points. Further, my guess is that if you paid off two cards but not others, you paid off the smallest balances first. This is also a great start, but short on point pluses.
You closed some credit card accounts.
Maybe you paid off your credit cards, but did you close the accounts? If so, the utilization points in your score will have gone down because you lost the available credit from those cards.
This is one reason it is important not to close accounts if you can prevent it. These credit limit limes are tied directly to your credit utilization ratio, which counts for 30 percent of your overall credit score. Try to keep credit cards open whether you use them or not – unless you are being charged a large fee for their use.
Here’s a tip: If you have two cards at the same issuer bank when you close one, ask to have the credit limit on the closed account added to your remaining open account. This keeps your utilization factor low while saving you an annual fee.
Your credit history has gotten shorter.
If you have recently closed any other accounts, it may have impacted your credit history. Credit history is how long you have had credit being reported in your name. In the world of credit reporting, older is better than younger. This is why it is harder for some young people to build up their scores.
If you did close those credit cards, they will count in your credit history age until they fall off of your credit report. As a side note, your car note would not affect the utilization portion of your score since installment loans are given for a set amount of both time and money.
Credit Services of America understands that losing 100 points from your score feels like you have dropped off of a cliff, but before we end, let us congratulate you on taking control of your debt situation. For the most part, the steps you have taken will benefit your overall financial health in the long run. And that is what is most important.
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.