Frequently Asked Questions
Welcome to our FAQ page! Here, you'll find answers to some of the most common questions about our services and the credit repair process. If you have any additional questions, please don't hesitate to contact us.
What is credit repair?
Credit repair is the process of identifying and resolving errors on your credit report to improve your credit score. This can include disputing inaccuracies and negotiating with creditors.
How long does the credit repair process take?
The duration of the credit repair process varies depending on the complexity of your situation. On average, it can take between 3 to 6 months to see significant improvements in your credit score.
Can you remove negative items from my credit report?
Yes, we can help you dispute and potentially remove inaccurate or outdated negative items from your credit report, such as late payments, collections, and charge-offs.
Will credit repair improve my credit score?
While we cannot guarantee specific results, many of our clients see significant improvements in their credit scores by addressing errors and adopting better credit habits.
Is credit repair legal?
Yes, credit repair is legal. The Fair Credit Reporting Act (FCRA) gives you the right to dispute inaccurate information on your credit report.
How much does credit repair cost?
Our pricing varies depending on the level of service you need. We offer several packages to fit different budgets and credit repair needs. Please contact us for detailed pricing information.
Can I repair my credit myself?
Yes, you can repair your credit yourself by following the steps outlined by the FCRA. However, many people find it beneficial to work with professionals who have the experience and resources to navigate the process efficiently.
What information do I need to start the credit repair process?
To get started, you'll need to provide us with your credit reports from the major credit bureaus (Equifax, Experian, and TransUnion), as well as any relevant financial documents.
How do I monitor my progress?
We provide you with access to an online portal where you can track the progress of your credit repair plan, view updates, and communicate with our team.
Will using your service affect my credit score?
No, using our credit repair service will not negatively impact your credit score. Our goal is to help you improve your credit score by addressing inaccuracies and providing guidance on better credit management practices.
How many FICO Scores are there?
There are several versions of FICO Scores, each tailored for different types of lending and financial assessment. Broadly, they can be categorized into:
Base FICO Scores: These are the most commonly used scores, including FICO Score 8 and the newer FICO Score 9 and 10.
Industry-Specific FICO Scores: These are tailored for specific industries like auto loans (e.g., FICO Auto Score) and credit cards (e.g., FICO Bankcard Score).
Overall, there are more than 25 different FICO Scores when considering both base and industry-specific scores.
What Factors into Each FICO Score?
FICO Scores are calculated based on five main categories of credit data:
Payment History (35%): Timely payments on credit accounts.
Amounts Owed (30%): Total debt and the proportion of credit being used.
Length of Credit History (15%): Age of credit accounts.
New Credit (10%): Recently opened accounts and hard inquiries.
Credit Mix (10%): Variety of credit accounts (credit cards, mortgages, installment loans).
What's the Difference Between the FICO Score and VantageScore?
FICO Score:
Developed by the Fair Isaac Corporation.
Most widely used by lenders.
Scores range from 300 to 850.
Emphasizes payment history and amounts owed.
VantageScore:
Developed by the three major credit bureaus: Experian, Equifax, and TransUnion.
Scores range from 300 to 850.
Uses a different scoring model that can include non-traditional credit data.
Tends to react more quickly to changes in credit behavior.
Why is the FICO Score Preferred Over VantageScore?
Industry Standard: FICO has been around longer and is more widely adopted by lenders.
Predictive Power: Lenders trust the predictive accuracy of FICO Scores for assessing credit risk.
Consistency: Lenders prefer the consistency and reliability of FICO Scores due to their long track record.
What's the Difference Between a Tradeline and an Authorized User?
Tradeline:
A tradeline refers to any credit account listed on a credit report.
This includes credit cards, mortgages, car loans, etc.
Each tradeline contains detailed information about the account, such as the balance, payment history, and credit limit.
Authorized User:
An authorized user is someone added to another person's credit account, typically a credit card.
The primary account holder is responsible for payments.
Authorized users benefit from the account’s history, potentially improving their own credit score.
At What Age Can You Start Building Your Personal Credit?
You can start building personal credit at 18, which is the minimum age to enter into a credit agreement in the United States. Some ways to begin building credit at this age include:
Applying for a secured credit card.
Becoming an authorized user on a family member's credit card.
Taking out a small credit-builder loan.
Using student loans, which are reported to credit bureaus.
Industry-Specific FICO Scores
Each industry-specific FICO Score, like the Auto Score, is based on the same five main categories of credit data as the base FICO Scores, but they are tailored to predict risk specific to the industry. The factors are weighted differently to reflect the unique credit behaviors relevant to the industry. Here's a breakdown for the Auto Scores:
1. FICO 2 Auto Score:
Based on the FICO Score 2 model.
Tailored for auto lending.
Places a higher emphasis on past auto loan performance.
Factors like payment history on previous auto loans, repossessions, and auto loan inquiries are more heavily weighted.
2. FICO 6 Auto Score:
Based on the FICO Score 6 model.
Similar to FICO 2 Auto Score but with updated algorithms and data points.
Emphasizes auto loan payment history, repossessions, and loan amounts.
Takes into account recent auto loan activity and inquiries.
3. FICO 8 Auto Score:
Based on the FICO Score 8 model, the most widely used base score.
Higher emphasis on past auto loan performance, repossessions, and auto loan inquiries.
Considers credit utilization and recent behavior more heavily.
Takes into account any missed payments or defaults on auto loans.
Factors Impacting Each Auto Score
The five main categories of credit data apply to all FICO Scores, including industry-specific ones like the Auto Scores. Here’s how they generally influence the Auto Scores:
Payment History (35%):
Auto Scores: Greater emphasis on timely payments related to auto loans, leases, and financing.
Missed payments or repossessions significantly impact the score.
Amounts Owed (30%):
Auto Scores: Considers the total outstanding balances on auto loans and other debts.
High balances on auto loans relative to the original loan amount can negatively affect the score.
Length of Credit History (15%):
Auto Scores: Looks at the age of auto loan accounts and overall credit history.
A longer history of positive auto loan payments can improve the score.
New Credit (10%):
Auto Scores: Considers recent applications for new credit, including auto loans.
Multiple recent inquiries for auto loans may lower the score temporarily.
Credit Mix (10%):
Auto Scores: Evaluates the variety of credit accounts, with a focus on auto loans.
A diverse credit mix that includes installment loans like auto loans can positively impact the score.
Key Points for Each Auto Score
FICO 2 Auto Score: Older model, focuses on historical data and past auto loan performance.
FICO 6 Auto Score: Updated model with refined algorithms, still prioritizes auto loan-specific behavior.
FICO 8 Auto Score: Latest model used in auto lending, considers recent credit behavior and auto loan-specific details.
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