What is a Credit Score?


Every where we go, you hear talk about good credit, credit checks, credit scores, and other credit terms that can baffle you. Credit and credit scores are the lifeline of the financial industry. It is very difficult to go through life without applying for some form of credit. Credit is when an individual or business gives you something of which you promise to pay at a later date, usually in installments. Loans, mortgages and credit cards are the well known types of credit there is, but changes in the credit reporting industry can have accounts reported from utility companies, insurance companies and landlords/rental companies.

Credit is granted based on what is in your credit reports and your credit scores. A credit score is a numerical calculation on the likelihood that you will pay your credit obligations. The higher the number, the more trusting a company is to grant credit. The numerical calculation is based on your payment history, types of credit, amounts owed, length of credit and credit inquiries.

Payment history is makes up 35% of your credit score, making it the most important. Always make your payments on time and never skip one. Missing one payment or paying late can drop you scores by 20 points, even more, and recovering from that can take a long time.

How much you in all your credit obligations accounts for 30% of your credit scores. Just because you have a $1,000 credit limit on a credit doesn’t mean you should use it all. The optimal rate is using 30% of your available credit, going over this percentage reduces your credit scores.

Length of credit history is 15% of your credit scores. The longer you have had credit accounts open and active, the better your scores. This shows that you’ve had credit for some time and have kept up your part of the bargain. The longer you have had credit, the better the odds of attaining new credit.

Your credit scores also take into account the kind of credit you have, and it makes up 10% of your scores. An optimal credit report has 1 mortgage loan in good standing, 1 auto loan in good standing and 3-4 credit cards, active and in good standing. Having different types of credit accounts shows all around financial stability and creditworthiness.

Finally, inquiries into your credit reports account for 10% of your scores. Whether credit is granted or not, every time you apply for any typ of credit, a notation is made in your credit reports. Too many inquiries, especially around the same time, can raise a red flag while lowering your scores at the same time. Creditors assume you are applying for credit irresponsibly when you request lots of credit at the same time.

Do you know the health of your credit profile? When was the last time you checked your credit reports? Are you actively taking care of your credit reports, improving them so your credit scores can go up? If you need assistance in this, or have another credit question, feel free to CONTACT ME.

The Time is Now – Repair Your Credit Today

FullSizeRenderWelcome to a new year. A time to start over and a time to fix our past errors. One of the biggest mistakes people often make is not taking care of their credit. Whether noticeable or not, credit affects our day to day lives, regardless of using the credit or not. Knowing how to use credit correctly can open many doors, like:

  • Better rates on mortgages and refinances
  • No or low interest rates on credit cards
  • Lower rates on car loans
  • Better insurance rates, whether life, auto, etc.
  • Positive results on job screenings that perform credit checks
  • Better housing options

Having good credit is important and you need to stay on top of it. Under the Fair Credit Reporting Act (FCRA), you have the right to dispute all inaccurate, erroneous and obsolete information. Information being reported that is wrong can be legally removed from your credit reports. This goes for anything and everything, including but not limited to:

  • Foreclosures
  • Student loans
  • Late payments
  • Bankruptcies
  • Repossessions
  • Child support
  • Charge offs
  • Public records
  • Collections
  • Judgements
  • Tax liens

Martinez Consulting Services will help repair your credit and teach you the necessary tools to help you achieve your credit goals, whether it’s to be debt free, buy a house, buy a car or take that dream vacation. The possibilities are endless if you take control of your credit and finances today. To request information or to get started, please send your contact information with preferred method and time of contact to Lmartinez964@optimum.net.


 

Other Services we Offer:

Notary Services

  • Mobile Notary
  • Apostille Services
  • Signing Agent Services

Business Services

  • Business Formation
  • Licensing/Permit Application
  • Consulting Services
  • Credit Services

Individual Services

  • Document Preparation
  • Typing Services
  • Credit Repair/Analysis
  • Translation Services (Spanish/English)
  • Fingerprinting

Lorraine Martinez
Mobile Notary, Business and Certified Credit Consultant
Martinez Consulting Services Corp.
P.O. Box 506
Bronx New York 10459
347-947-0084 Tel/Text
800-957-4405 Fax
Lmartinez964@optimum.net

logos

%d bloggers like this: