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Credit reports are key to helping you confidently protect and manage your identity. You can rest assured - reviewing your report does not negatively impact your standing or score. Financial institutions, employers, and insurers use credit reports to gain insight into your financial profile.
Because they provide a record of your present and past credit use, credit reports may determine whether or not you will be offered credit, and on what terms. Inaccurate or fraudulent account information on credit reports can result in denial of credit, higher loan and insurance rates and even rejection for employment.
Understanding your credit score and the factors that impact it will prepare you to make the best possible decisions for your financial future. Want help reading your report? We'd love to help, contact us to get elevated!
Credit Elevation is designed and available to help you prosper through financial literacy. Here you will learn techniques that provide you the tools you need to have healthy credit.
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A credit score is a number generated by a mathematical formula that is meant to predict credit worthiness and integrity. Credit scores range from 300-850. The higher your score is, the more likely you are to obtain credit. The lower your score is, the less likely you are to get credit. If you have a low credit score and are approved for credit then your interest rate will be much higher than someone who had a good credit score. Therefore, having a high credit score can save many thousands of dollars over the life of your mortgage, auto loan, or credit card.
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As your financial profile changes, so does your score, so knowing what factors and types of accounts affect your credit score gives you the opportunity to improve it over time.
Payment history.
Payment history accounts for 35% of your FICO® Score☉ , the credit score used by 90% of top lenders.
Amounts owed.
Your credit usage, particularly as represented by your credit utilization ratio, is the next most important factor in your credit scores. Using more than 30% of your available credit is a negative to creditors. Credit utilization accounts for 30% of your FICO® Score.
Credit history length.
How long you've held credit accounts makes up 15% of your FICO® Score. This includes the age of your oldest credit account, the age of your newest credit account and the average age of all your accounts. Generally, the longer your credit history, the higher your credit scores.
Credit mix.
Credit scoring models consider the types of accounts (cars, mortgages, student loans, credit cards, etc.) and how many of each you have as an indication of how well you manage a wide range of credit products. Credit mix accounts for 10% of your FICO® Score.
New credit.
The number of credit accounts you've recently opened, as well as the number of hard inquiries lenders make when you apply for credit, accounts for 10% of your FICO® Score. Too many accounts or inquiries can indicate increased risk, and as such can hurt your credit score.
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Can include names of companies that have accessed your credit file and are divided into two categories depending on the nature of the pull. These are called soft and hard inquiries, and have different impacts on the overall score.
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A soft inquiry, sometimes known as a soft credit check or soft credit pull, happens when you or someone you authorize (like a potential employer) checks your credit report. They can also happen when a company such as a credit card issuer or mortgage lender checks your credit to pre-approve you for an offer.
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A Hard Inquiry is when a lender request your credit report as part of an application for a loan or credit. This type of inquiry stays on your report for 2 years, leaving a lasting impact on your credit for 12 months. After 12 months the hard inquiry is of non-effect to your credit score.
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where do you stand.
First Step to Improving is Knowing exactly Where Your Stand! Every Score Tells a Story. Knowing the Story, is Essential to Restoring You! Know the Facts! Request your reports FREE at least once each year. The three main reporting agencies are Equifax, Experian, and TransUnion. Each report will vary.
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Build it.
Second Step is to Build Your Score with a Budget! Build it with a Plan! Build it with a Dispute Strategy! You can win in the end as long as you have a plan! We help you build it, we help you budget it, and we help you dispute inaccurate information.
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encourage yourself.
Third Step is to Keep Going! It is only up from here. You can exceed and achieve your desires by taking charge now. Encourage yourself along the way by reflecting on the small success and the big success with the same attitude. Every Point Matters!
The more knowledge you have, the better you are equipped with gaining financial literacy, freedom, and ultimately wealth! Let us help rebuild your name, rebuild your integrity, and get you elevated in your wealth!
All Things Are Possible! Your life changes when you GET ELEVATED.