Checking your credit is essential to knowing where you stand. Legally you are allowed to check your credit for free once a year. There are 3 credit agencies which determine your score with slightly different variations, Equifax, Experian, Transunion. The score can range from from 300 to 850 with 600 being the average. However to qualify for most credit cards, loans, and to be considered having “good” credit, a score over 700 is necessary.
Credit is affected by many factors, primarily how long you have had credit lines, how much credit you have used, and what your payment history looks like. Every inquiry on your credit, which is considered a soft pull, such as when you apply for a new credit line reduces the score by 5-10 points, and every late payment can hurt up to 30 points and stay on your credit for 30 days. The first step to great credit is making sure you pay on time no matter what the situation!
Finally, the issue that can most hurt your credit is collections and legal liens. These can sometimes be attached to your credit profile without your knowledge, and it becomes a nasty surprise when you’ve been paying all your credit cards on time and apply for a lease on a car and get denied because a utility company put a collection on you.
When this happens, dont do anything except contact us!! We’ll help you get all the negative items removed and bring your credit score back up significantly.