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Atlanta residents are often pretty patient. It is one of the qualities that come naturally to many Southerners. That being said, when it comes to less than stellar, or bad credit, you would like it fixed NOW. And that is only understandable as having a bad credit score can severely limit your opportunities, making your life much harder than it has to be.

The good news is that there are a number of ways to fix your poor credit; however, many of these ways take a little time to work. To be honest, the one and only way to improve your credit score instantly is to get all the errors removed from the credit report.

Keep in mind that the information on the credit report could affect you in several ways. Atlanta, GA is one of the most ideal places to both work and live and yet so many residents are still renting homes instead of buying; are you wondering why? One of the major obstacles in the way of Atlanta residents with regards to property ownership is credit score. Although there is no denying that numerous factors can play a role, the most important variable when trying to secure a mortgage is a person’s credit rating. Perhaps, a bank has already denied you in the past for this very reason, leaving you feeling sad and hopeless. But, you should know that you aren’t alone.

Lexington Law Firm has helped thousands of Atlanta residents improve their credit score and we are ready and willing to help you as well.

It is Important to Know the Basics of Credit Repair/Score

Before you embark on a journey to improve your credit, there are some basic things that you need to know. To repair or improve your credit score, you will need positive financial events to be on your credit history and at the same time get rid of all or most of the negative ones.

Remember that your credit score is one of the easiest ways of checking your credit history. If a credit institution, such as a commercial bank or any entity that extends loan, wants to know your credit history in great detail, they will most likely review your credit report. If your credit history is in great shape, it will make it easier for you to secure the home loan you’ve applied for.

As discussed earlier, your credit score is one of the quickest ways to know your credit history. Your credit score could be good, bad or average.

Keep in mind that bad credit score implies that you have many negative financial events on your credit history. On the other hand, a good score means you have more positive events. Your credit reports are prepared by three main credit bureaus: Equifax, TransUnion and Experian. They can send your report to you on your request.

it's about your credit
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Typical Elements Of Your Credit Score

Repairing your credit score means you want positive events to appear on your credit history and get rid of the negative ones.

It is extremely important to know what elements make up your credit score before you go about improving it as you will have a much better idea of what you must and mustn’t do to improve it. There are many variables that make up your credit score which are as follows:

  • Available credit
  • Your payment history
  • Length of credit history
  • Recent credit inquiries
  • Credit type
Credit utilization, also known as, available credit is one of most important components of your credit score. Note that only because you have credit available, it doesn’t mean you need to use hundred percent of it. According to financial experts, it is ideal to keep your credit utilization lower than 30%.

Remember that your payment history informs the lenders how prudent you’ve been when it comes to repaying the sums you owe your creditors. Your credit score will be negatively affected, when you miss your or delay your bill payments.

Length or term of your credit history is another key component i.e. the more data lenders and creditors have on you, the better decision they will make.

Keep in mind that when it comes to type of credit, it is ideal that you mix your revolving and installment accounts in suitable proportions to achieve the optimum score. Last but not least, keep credit inquiries as few as possible. Excessive inquiries on your credit history tend to give a negative signal.

What’s The Meaning Of Credit Repair?

In simple words, your credit score is an indicator of the health of your credit. Depending on the way you have dealt with your various debts in the past your credit score could be good, average or bad. Note that commercial banks, credit unions and other similar lending institutions will only extend a loan to you after they know how healthy your credit score and history is.

For these institutions, any loan to you is an investment in their books, and a bad credit score considerably increases the various risks, such as overexposure, associated with the investment. To put it simply, if you have a low credit score, it indicates them that their decision to lend you money can go awry.

But how do the banks know your credit score? Well, there are three major credit bureaus that keep a detailed record when it comes to all the debts you owe and how you’ve been repaying them. These are TransUnion, Experian and Equifax. You must have heard of them.

When you make your payments on time, it enhances your credit score. On the other hand, when you delay or miss your payments for any reason, they are recorded as negative financial events on your credit report and cause your credit score to decline.

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Components That Make Up Your Credit Score

Now that you know how credit scores can affect you, you may be interested to know how you could maintain and improve your credit score to turn your life around. When it comes to improving and marinating a good credit score, the great news is that there are lots of things you can do to get your finances in control. These are the five key components of your credit score.

  • Your payment history
  • Owed debt or available credit
  • Length of credit history
  • Types of credits
  • Nature and number of credit inquiries
To determine your average credit score, the major credit bureaus consider all of these five variables. Keep in mind that they are record all your positive and negative events whether they are related to your car loans, credit cards, or home loans.

The available credit element indicates your financial health. It is not a good sign if you have exhausted all your available credit limits. If you have a diverse combo of different types of credits, it helps improve your score.

And do not think that you will have the best credit score if you have recently received your social security number as a brief credit history is not favorable.

Last but not least, do not apply for too many loans since high volume of credit inquiries isn’t good for your credit history or your credit score.

Debunking Common Credit Score Misconceptions

how credit scores work?

High Income Translates into a High Credit Score

This may come as a surprise to you, but your income has no impact on your credit score. So, it is not about how much you earn, rather about how carefully you manage your income. As a result, a person earning just $3,000 per month could have a much better credit score compared to a person who earns $12,000 per month if they manage their finances better.

Credit Score Decline Gradually

Like many people, you may think that for your credit score to deteriorate considerably you have to make plenty of mistakes; sadly this is not true. Your credit score could plummet within only a couple of months.

Debit Cards Can Strengthen the Credit Score

Do not be fooled by this myth. It is called your credit score for a reason, and not your debit score. So, debit and prepaid cards that you take out will not affect your credit history.

You should Repair your Credit on Your Own

Although credit repair companies will charge you for improving your credit score, bear in mind that their customized services are extremely valuable. While you can do plenty of things your credit repair company would do on your behalf, keep in mind that someone has to tell you what you should and should not do. Trial and error is something that you just can’t afford with your credit score. In contrast, a professional credit repair company will get results within a matter of days which may take you several months. They will not only save you time, but also look into several things you may not even know.

Impact Of Credit Scores On Financial Products

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Your credit score can impact any credit-related financial products to a large extent.

In fact for loans, mortgages, credit cards and any other transaction in which lending is involved, your credit score will be considered a threshold that determines whether you get the funds or not.

If your credit score lies below 630 you will not be cleared for any funds, you may have to go the credit repair route for this.

What's Affects Your Credit Score?

Your credit score is not just determined by how much you have paid back or failed to pay, there are other components that also affect this rating. Your credit score will consist of the following components

credit cards

History of Payments

Burden of Debt

Length of Credit

Credit Type

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Analysis of Factors Affecting Your Credit Score

Payment History

For good or bad, a significant chunk (35%) of your total credit score is your payment history. During your life, it is likely that you will need different kinds of loans finance products like mortgages, credit cards, and car loans among others.

When you are paying off these loans, you will need to follow a stringent schedule. If you miss out or delay your repayment, a negative financial event will appear on your credit history to smear it for seven long years.

This is problematic because when a lender considers this event they will think you aren’t a financially stable person and may not extend the loan to you. Or, they may extend the loans on more stringent terms, such as a higher interest rate, which is almost equally bad.

Length of Credit History

Generally, lenders prefer loan applicants who have a long and stable credit history. If you have a short credit history, they lack the information to determine how risky you are as a borrower if they do extend the loan. Keep in mind that credit history length makes up about 15% of your credit score.

Credit Diversity

It is likely that you may have availed a car loan and repaid it in full without any delays. Although this is great, lenders like borrowers who have dealt with a variety of loans such as mortgages, student loans, and credit cards loans, etc. Note that if your credit portfolio is diversified, you will have a higher credit score. Credit type is about 10% of your total credit score.

Amount Outstanding

The sum of money you owe or the available credit makes up a significant 30% of your total credit score. To keep your credit score positive, try to use just a small proportion of the total credit available to you. It is worth pointing out that payment history and available credit make up 65% of your total credit score, which is a lot!

New Credit Accounts

When you are trying to build a positive credit history, keep in mind that a sudden spike in credit inquiries as well as new credit accounts may lead to a negative event as well. This element is about 10% of your total credit score.

How To Keep A Good Credit Score?

 

Lexington Law Credit Repair will help all of those who are looking for a credit repair company.

Despite your financial expertise, credit repair is best left to a company with years of experience. One of your options, is to work with the trusted leaders in credit repair, Lexington Law Firm.

Lexington Law will evaluate your credit reports and customize a plan that is unique to your situation. They will also communicate to creditors and all three credit bureaus on your behalf. Past customers of Lexington Law have seen an average of a 40-point score improvement in the first four months of being on their service.

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This is what you can expect

  • Work to improve your credit reports
  • Receive a free summary report and credit score
  • Talk with a credit consultant about your reports
  • Access online dashboard with updates

Lexington Law Firm’s Stories

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You were very professional and willing to help with my situation. Lexington Law does not pass judgement and I can hear the care and concern of my situation. Sympathetic Joshua B

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Results on solving my issues have been excellent. The Customer Support has been overwhelmingly fantastic! Choosing Lexington Law has been by far the best choice I could have made, I look forward to our continued success in repairing my credit.Gail L

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Atlanta credit repair says: Results have been fantastic! In such a short amount of time, I am so impressed with Lexington Law, I would recommend it any and everyone. We are hoping to have the credit to purchase a home this time next year. The client dashboard rocks, so informative.Andrea P

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You Will Be Able To

780 credit score
Work to improve your credit reports
780 credit score
Receive a free summary report and credit score
780 credit score
Talk with a credit consultant about your reports
780 credit score
Access online dashboard with updates