Credit Repair 

is the process of fixing poor credit standing that may have deteriorated for variety of reasons.  It involves paying a company to contact the credit bureau and asking for the negative items and the negative inquiries on a client’s report to be removed. 

Credit Scores

is a number generated by a mathematical formula that is meant to predict creditworthiness. Credit scores range from 300-850. The higher your score is, the more likely you are to get a loan. The lower your score is, the less likely you are to get a loan. If you have a low credit score and manage to get approved for credit, your interest rate will be much higher than someone who had a good credit score. So, having a high credit score will save you many thousands of dollars. 

Credit Bureau

A credit bureau is a company that collects and maintains your credit information and sells it to lenders, creditors and consumers in the form of a credit report. There are dozens of credit bureaus, we’re most concerned with the big three: Equifax, Experian, and TransUnion.

Negative Accounts

Items that are marked either DELINQUENT or DEROGATORY. (Recent late payments, collections, and other derogatory items within the last six months )

Negative Inquiries 

  • Hard Inquiry Also called as “Hard Pull”, occurs when a client applies for a new line of credit such as credit cards or loans then the creditor requests to look at their credit record to determine the risk they  pose as a borrower. A hard pull shows up on a clients credit report and can affect their credit score.
  • Soft Inquiry Also knows as “Soft Pull”, occurs when a client or someone a client authorizes (i.e. employer) to check on their credit report. Soft inquiries do not impact a client’s credit scores.  

Bankruptcy

a legal proceeding for an individual or a business that is unable to pay their outstanding debts. Bankruptcy remains in a client’s credit report for 7-10 years. 

Chapter 7 Bankruptcy

Also known as “Straight Bankruptcy”. Under this kind of bankruptcy, the person is required to allow a federal court trustee to supervise the sale of any assets that aren’t exempt and the money from the sale goes toward paying the creditors. 

Chapter 13 Bankruptcy

 Allows the person to keep their property in exchange for partially or completely paying their debts with a 3-5 years payment plan. Once they have completed the plan, the debt is already discharged or dismissed.