If you think you can fix your credit report in a day and instantly give your credit score a boost-you’re wrong. Supposing you have found errors on your credit report and you decided to fix some areas or focus on them to improve a bad credit score, it would take more than a month to see better results. Scam credit repair will promise overnight guarantee of success, but legitimate credit repair agencies understand that there is more to eliminating and correcting errors in your credit report to boost your score. Here’s why.
Response time
It takes 30-45 days for credit reporting agencies to respond to disputes. But the moment they resolve the issue, they shall remove the error immediately. You can see some big improvements to your credit score as you fix the issues one by one.
Number of mistakes in the report
If there are five erroneous entries, you should dispute each of them with each credit reporting agency. Disputing a mistake doesn’t mean disputing all other entries. If the mistakes are entered in different accounts, you’ll need to file a dispute on each account. However, if there are inaccuracies in the same account, you can simply group them into one dispute. In the same way, filing a dispute on one credit reporting agency does not affect the entries in other reporting agencies.
Your credit score
How bad is your credit score? You cannot expect a 200-point jump with one mistake, unless it has seriously damaged your credit. If you think you are in a bad credit situation and the credit repair process seems confusing to you, you can hire credit repair experts like Clean Credit to represent you for a reasonable fee. We can deliver quality service to discover the root causes of your bad credit score and if your credit report needs to be cleaned up and repaired. As a result, your credit score would increase too.
Credit score killers
Your credit file details the credit problems you have. It gives you some ideas of the things that put you in a particular credit situation. Remember that your credit rating is based on the following factors:
- Your payment history
Even one late payment can cause a significant drop in your credit score, because it accounts for 35% of your credit score.
- Your credit utilization
How many revolving credits do you have compared to the limits on those credit accounts? Simply put, how much of the credit have you used up? Since it accounts for 30% of the credit score, it is important to keep the utilization rate of your home equity lines of credit or credit card below 30%. Maxing out a credit limit, even on a single credit card can seriously damage your score.
- Age of your credit account
Your oldest account and the average of all your credit accounts account for 15% of your credit score. So, be careful in closing accounts. Retaining your oldest credit account can protect your credit score from going downhill.
- Mix of your credit accounts
How you handle different types of credit accounts account for 10% of your credit score. Do you have installment accounts like car loans and mortgages? What about revolving accounts like lines of credit and credit cards? While it is not wise to take out a loan just to build credit, having several types of credit can improve your credit score.
- History of credit applications
Did you apply for several credits in a month? Hard inquiries can slightly lower your score. So, make sure you read the loan terms first before you send out various loan applications.
Now you know why you can’t raise your score overnight if you try to fix your credit score on your own. If you have questions on what’s hurting your credit scores and how you can see the fastest improvement, contact Clean Credit today!