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The Truth about Credit Repair

The Truth about Credit Repair Companies

  • Hi my name is Caiden with The Credit Giant, and I’m going share with you the truth about credit repair companies.
  • Credit repair companies can not raise your credit scores.
  • You are the only one that can raise your credit scores. Remember your action is what caused your credit score to go down and your action is the same thing that will bring your credit scores up again.
  • For example, If you have 30 negative items on your credit profile and you have no positive payments reporting to the credit bureaus, your credit scores will not go up; in fact, if we are able remove about 80 to 90% of your negative accounts from your credit profile, you will most likely lose your credit scores altogether.
  • How do lenders view your credit profile?
  • Lenders will increase your credit limit from time to time if you keep your account in good standing by making all payments on time and by keeping your card limit at or below 50%.
    • Example: if you have a $12,000 credit card limit with Bank A and make two late payments, there is a good chance Bank A will drop your card limit. If you have a $10,000 credit card limit with Bank B, there is a very good chance that Bank B will also drop your credit limit simply because the banks are always looking into your financial health.
  • What causes your credit scores to drop?
    • A late payment can cause your credit score to drop anywhere from 30 to 40 points; never ever make late payments.
    • Over the limit credit cards can also cause your credit score to suffer; your score can drop 30-40 points.
    • When you charge more than 88% of your card limit, the Credit Bureaus will read your card as being maxed out; maxed out credit cards can cause your credit score to drop 30-40 points.
    • Excessive inquires for new credit can also cost your credit profile points. More than 12 inquires within a 12-month period is considered excessive.
  • What can you do to raise your credit score in the credit bureaus?
  • Add trade-lines. The base of all credit is trade-lines. You need to have 3 to 6 trade-lines in good standing on your credit profile in order for the credit bureau computers to start raising your credit scores.
  • Never use more than 50% of your credit card limit; when you max out your cards, lenders will see it because they always check your credit periodically without your knowledge.
  • Remember, we cannot raise your credit scores, only you can do that.
  • What can I do now about my financial future?
  • Sometimes you need to make the sacrifice to invest some money into rebuilding your credit. Don’t give a car dealer $3,000 to $5,000 as a down payment on a car that is 5 to 7 years old and get a 28% interest rate. Instead, invest $2.000 to $3,000 into building your credit profile and get yourself a 690 to 750 credit score; then, you can get a brand new car only paying the taxes plus you can take advantage of the best finance terms and lower interest rates available.
  • Ask your credit coach today how you can achieve a healthy credit profile in about 6 to 8 months. Start building today for a better future tomorrow.