Get Credit Fit™
What to Know…
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Understand the components of your credit report, including personal information, account history, and public records.
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Grasp the significance of credit scores, how they're calculated, and the impact they have on your financial life.
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Learn to identify negative items such as late payments, collections, bankruptcies, and inquiries on your credit report.
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Explore the types of credit inquiries and how they affect your credit score.
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Comprehend the importance of your debt-to-income ratio and how it influences lenders' perceptions of your financial health.
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Explore how the length of your credit history influences your credit score.
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Recognize the critical role of payment history in shaping your credit score.
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Understand the significance of your credit utilization ratio and its impact on your overall creditworthiness.
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Diversify your understanding of credit mix and how it contributes to a well-rounded credit profile.
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Learn about public records, such as bankruptcies and tax liens, and their impact on your credit report.
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Cultivate positive credit habits, including making on-time payments, managing credit responsibly, and staying within credit limits.
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Implement strategies for protecting yourself from identity theft and safeguarding your credit information.
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Connect credit repair efforts to broader financial planning, ensuring a holistic approach to your financial well-being.
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Develop effective budgeting techniques to manage your finances and avoid credit pitfalls.
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Stay informed about changes in credit laws, regulations, and industry best practices for a proactive approach to credit repair.
Credit Checkpoint✔
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Why: Your credit report is a snapshot of your credit history and influences your credit score.
How: Obtain a free credit report annually from each major credit bureau (Equifax, Experian, TransUnion) at AnnualCreditReport.com. Review the report for accuracy, checking personal information, account details, and any discrepancies.
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Why: Credit scores distill your creditworthiness into a numeric value, influencing your ability to secure loans and favorable interest rates.
How: Familiarize yourself with common credit scoring models, such as FICO and VantageScore. Know the score ranges and what each range signifies in terms of creditworthiness.
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Why: Understanding what affects your credit score enables you to address specific areas for improvement.
How: Recognize the primary factors: payment history, credit utilization, length of credit history, types of credit, and new credit. Evaluate how each factor contributes to your overall score.
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Why: Credit utilization measures the ratio of your credit card balances to credit limits, impacting your credit score.
How: Aim for a credit utilization below 30% to demonstrate responsible credit management. Regularly check credit card balances and make timely payments.
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Why: Having a mix of credit types can positively impact your credit score.
How: Consider maintaining a combination of credit cards, installment loans, and retail accounts. Avoid opening multiple new accounts within a short timeframe.
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Why: A longer credit history contributes positively to your credit score.
How: Keep old accounts open to lengthen your credit history. Make consistent, on-time payments to build a positive credit track record.
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Why: Establishing goals provides a roadmap for improving and maintaining your credit health.
How: Define specific, measurable goals, such as raising your credit score by a certain number of points. Break down larger goals into manageable steps.
Know the Terms
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The yearly interest rate applied to a loan or credit card account.
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An additional individual listed on a credit account.
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The legal process for either eliminating or restructuring debt.
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Occurs when a payment is significantly overdue, leading it to be transferred to a collection agency and marked as a collection account.
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The financial institution or company providing funds.
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The maximum amount of money available for use on your credit card.
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An account that is 30 days overdue on payment.
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Denotes a significant impact to your credit score, resulting in a “credit inquiry” to your credit profile.
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Credit that allows access to funds after making a payment, such as with a credit card.
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A loan requiring collateral, such as a home or auto loan.
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A loan that does not necessitate collateral.
FAQs
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Yes, errors can affect your score. Sign Up to become a member and let us help you begin the dispute process.
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A good credit score varies, but generally, a score above 700 is considered good. It's essential to note that what's deemed "good" may depend on the lender or granting institution. Credit scores are typically updated monthly. For personalized guidance and to better understand your credit profile, contact Reset Credit Builders, LLC. We're here to support you on your credit journey.
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“Hard Inquiries” slightly reduce scores temporarily and stay on your report for up to two years. To understand the difference between “Hard and Soft Inquiries” contact us for support.
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Yes, FICO and VantageScore are common. Lenders may use either, and they assess similar factors.
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Pay bills on time, manage debt wisely, and monitor your report. Establish good financial habits. Contact Reset Credit Builders, LLC for your Beginners Guide to Building Positive Credit Habits.
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You can dispute on your own, but professionals can provide expertise and streamline the process. Contact us at Reset Credit Builders, LLC for support.
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Divide monthly debt payments by gross income. Lenders use it to assess your ability to handle more debt. Contact Reset Credit Builders, LLC for support.