OPTIONS LEARNING CENTER

> You only have a few options:
  1. Credit Counseling – best for your credit, can you afford it?
  2. Get a loan – Behind or over-extended, can't do it.
  3. Bankruptcy – Rather have a 13 or Settlement?
  4. Pay creditors directly – If your pay forever plan was working, you wouldn't be looking for help.
  5. Debt Settlement Group

Bad Credit

Everyone struggling with large amounts of debt has to deal with bad credit. If you’ve experienced, this, then you know that bad credit can significantly affect your life, coming up anytime a credit score is run on you, such as when you are applying for a job or a loan. Despite what you may hear, the only real way to repair credit is to pay off your outstanding balances. The method used for calculating your credit score is described below.

What factors affect your credit score?

There are five factors used in credit scoring calculations that determine your overall credit score:

Previous Credit Performance (Payment History): 35% Creditors want to know what your payment history is like: have you paid everything on time, are you late on anything now, and so on. Although this is only one part of what is used to determine your credit score, it is very important and carries more weight than any other individual section. A good payment history will have an excellent effect on your credit score.

Current Level of Indebtedness (Amount Owed): 30% Creditors have to consider how much debt is too much, and whether or not the borrower can pay a new creditor and still afford to pay his other bills. Having available credit can actually help your ratio of debt to available credit.

Amount of Time Credit Has Been in Use (Length of Credit): 15% In general, the longer your credit history the better your credit score. However, this is only 15% of the total score, so even those with a short credit history can still have good credit scores if they do well in the other areas.

Pursuit of New Credit: 10% Each time someone runs a credit check on you, it creates an inquiry. If these build up they begin to lower your credit score. Credit is becoming increasingly popular and available through online and mail services. Be careful about pursuing too many kinds of new credit.

Types of Credit Experience: 10% Because this score is only 10% of the total, it is not generally a key factor in determining your credit score. However, it is not a good idea to open different types of accounts just to try and make this factor better as doing so will likely reduce your scores in other areas.

Here are a few suggestions to improve your credit score:

•   Pay your bills on time. This is simple, and may be fairly obvious, but payment history makes up a large portion of your credit score, and is one of the easiest factors to change and control. Delinquent payments can have a major negative impact on your score.

•   Keep your balances low on unsecured revolving debt like credit cards. High outstanding balances can negatively affect your score.

•   Only apply for credit that you need. The amount of your unused credit is an important factor in calculating your score.

•   Make sure the information in your credit report is correct. If you feel any of your credit listings may be inaccurate, untimely, misleading, biased, incomplete, or unverifiable, the law gives you the right to dispute it with the credit agencies or with the creditor directly. If a credit bureau can’t verify the accuracy of a disputed listing, it must be removed from your credit report.

•   Eliminate and pay off outstanding debts. Whereas outstanding debt and a bad payment history will lower your credit score, settled accounts with a zero balance are positive compared to unresolved delinquent debts or bankruptcy. As you begin paying off your debts, your credit score should improve since the negative items have been resolved.

DebtRX does not repair credit. The only way to repair your credit is to pay your bills. However, we can help you on your way to repairing credit by providing payment plans that can not only help you pay your bills, but also help you eliminate debts. As you begin to pay off your debts, your debt amount and balance to limit ratios will be greatly improved and your credit score will begin to improve.

Begin today to improve your credit score by paying off your old debt! Call now for a free, no obligation analysis 1-866-601-7857!