It’s time to improve your credit score
If it seems like everything you try to do to get ahead requires a good credit score, you’re right. Renting, buying a car, becoming a homeowner, or even opening up a credit card.
So what is a good credit score? And how do you improve it?
Our certified credit counselors are here to help.
When should you contact us?
Unsure of your credit score?
We’ll pull a legitimate credit report and review your score and what it means.
Need to boost your credit?
There are strategies that will help you increase your score quickly.
Need to qualify for a loan?
We’ll help identify what you can afford based on your credit and income.
“There is such a relief in becoming debt free and I was amazed at how much money I saved.”
What you should know about credit
Decoding credit can feel overwhelming. Here’s answers to some frequently asked questions that can help you determine whether you should contact us.
What is a good credit score?
A good credit score starts at 700 and an excellent credit score starts at 750. The highest score you can achieve is 850.
What is the real problem with a poor credit score?
Having a poor credit score will cost you more in interest paid compared to someone with a good credit score. For example, someone who wants to borrow for a car loan and has a credit score of 550 will pay $3199 in interest. For the same loan terms someone with a 720 score will pay $702 in interest. Review the chart below for the actual cost of poor credit
Can’t I just look at a free app to get my credit score?
With free apps most consumers think that they know their credit score. You’d be surprised to learn that those scores are based on estimates.
What does your credit score represent?
Your credit score represents your credit worthiness to lenders. Credit scores are calculated by considering factors such as payment history, overall debt, and the number of accounts you have open. Landlords, lenders, employers and insurance companies review credit scores for eligibility and the rates they apply.
How do lenders use your credit score?
Lenders use your credit scores to determine whether your request for credit should be approved or denied as well as the interest paid on approved loans. They may also use this information to determine whether you’re eligible for a credit limit increase or decrease.
How do you improve your credit score?
Paying your bills on time, raising your credit limit and disputing incorrect information are a few of the ways to raise your score. Talk to one of our certified credit counselors to find more ways to boost your score quickly.
How much debt is too much debt?
Lenders use a calculation called debt-to-income ratio. Your debt-to-income ratio is the relationship between your income and the debt payments you owe. To be more specific, it’s calculated by adding up your monthly debt payments and dividing it by your gross monthly income (before taxes).
For example, if you pay $1500 a month for your mortgage and another $100 a month for an auto loan and $400 a month for the rest of your debts, your monthly debt payments are $2,000. ($1500 + $100 + $400 = $2,000.) If your gross monthly income is $6,000, then your debt-to-income ratio is 33 percent. ($2,000 is 33% of $6,000.)
Start building your credit today
Our counselors are excited to help you to better understand your credit report and work toward raising your credit score.