Free Credit Repair Advice

Credit Score (also known as Credit Ratings) is a number based on the contents of your Credit Report. That number is calculated from based on factors such as:

• Payment record: A record of bills being overdue will lower the credit rating.
• Control of debt: Lenders want to see that borrowers are not living beyond their means. Experts estimate that non-mortgage credit payments each month should not exceed more than 15 percent of the borrower’s after tax income.
• Signs of responsibility and stability - Lenders perceive things such as longevity in the borrower’s home and job (at least two years) as signs of stability.
• Credit cards that are not used - Having credit cards (even if they’re not used) has a negative effect on your score. The credit rating formula figures out the total amount of credit an individual can have based on their score. So if you’ve already tapped into most of that credit via credit cards (once again, it does not matter whether you’re actually using this cards or not), they you won’t be eligible for any more credit.
• Credit inquiries - An inquiry is a notation on a credit history file. There are two kinds of notations:
• “Soft” Credit Pulls:
• A credit bureau may sell a person’s contact information to an advertiser purchasing a list of people with similar characteristics, like homeowners with excellent credit.
• A creditor can check a person’s credit periodically.
• A credit counseling agency, with the client’s permission, can obtain a client’s credit report with no adverse action.
• “Hard” Credit Pulls: Hard credit inquiries are made by lenders. Lenders, when granted a permissible purpose by a borrower for the purposes of extending his credit, can check his credit history. Hard inquiries from lenders directly affect the borrower’s credit score. Keeping credit inquiries to a minimum can help a person’s credit rating. A lender may perceive many inquiries on a person’s report as a signal that the person is looking for loans and will possibly consider that person a poor credit risk.