FAQs
Credit
Credit bureaus generally consider a good credit score to be anything above 650.
Credit bureaus typically consider anything below 580 to be a bad credit score.
Your FICO® Score is used in 90% of all lending decisions, but each of the three credit bureaus also has a customized credit score based on your credit information.
The main credit scores range from 300 – 850.
Equifax, TransUnion and Experian are the three main credit reporting bureaus.
A credit bureau is a company that collects information relating to your financial habits, and makes this information available to lending institutions and credit card companies.
A creditor is someone who provides credit. This includes, but is not limited to, banks, collection agencies and even car dealerships. They report your repayment progress to the credit bureaus, who then use that information to build your credit profile.
There are plenty of paid services that will provide you with your credit score, but at Debt Cleanse we work with you on improving your overall financial health.
No, your credit score is just one component of your credit report. Your credit report also includes your identifying information, trade lines, credit history, credit inquiries, public records, collections and other late payment information.
There are five main contributors to your credit score—payment history, credit usage, credit age, credit mix and recent credit. The most important of these factors is your payment history, which can be directly influenced by credit repair.
Your credit report contains things like your identifying information, trade lines, credit limits, account names, credit history, credit inquiries, public records, collections, late payment information, and of course, your credit score.
Employers are allowed by federal law to see a modified version of your credit report for purposes of hiring and promotion, though in California this is limited to jobs with financial or management responsibilities. Your employer, or potential employer, is required to get your permission before accessing your credit report, but yes, it could cost you a job or promotion.
While your credit age, or how long you’ve had access to credit, can affect your credit score, there’s no specific amount of time required. Generally, the longer you’ve had a trade line, the better.
There are many factors that go into being approved for a loan, but generally you’ll need at least a score of 620 to be approved for a home loan. Some lenders will approve scores as low as 500, assuming you don’t mind paying extra money in interest.
With car loans, the minimum accepted score will depend on the amount of money being requested. Some lenders will approve scores as low as 500, assuming you don’t mind paying extra money in interest, but a score of 660 and above is recommended.
With personal loans, the minimum accepted score will depend on the amount of money being requested. A score of 700 or higher is ideal, but some lenders will approve lower scores if you’re willing to pay extra money in interest
Your credit report is generally looked at by those who are considering loaning you money. This includes banks, car dealerships and credit card issuers.
Debt Cleanse
There are five factors that impact your credit score—payment history, amount of debt, length of credit history, credit mix and new credit. To improve your score, you can pay your bills on time, pay debt down, maintain your current accounts, get different types of credit and avoid applying for new credit frequently.
Beyond these five factors, your credit reports could contain negative items that are unfair or inaccurate, which can stay on your reports for up to seven to 10 years. If you don’t want to wait that long to build your credit, you can try repairing your credit.
Your FICO® Score is a three-digit number determined by the information on your credit report. While FICO® doesn’t collect the data themselves, it’s their algorithm that determines your score. Considering their score is used in 90% of all lending decisions, it’s very helpful to know where you stand.
By law, the credit bureaus have to provide you with a free credit report every 12 months. You can claim this free credit report from www.annualcreditreport.com, or by calling 1-877-322-8228. You will need to provide your name, address, social security number and date of birth to verify your identity.
Outside of this official source, there are many free services that will provide you with your credit score.
A negative item on your credit is anything in your credit history that could lower your score. It includes things like collections, late payments, charge-offs, liens, bankruptcies, repossessions and more. Especially if these negative items came as a result of identity theft, divorce, medical debt, student debt or military leave, you may be able to remove them through credit repair.
No. Most negative items will fall off of your report after seven years, though some deletions may take as long as 10. The truth is that the credit grantor or the credit bureau can choose to delete the negative credit listing at any time, especially when you give them a reason to do so. If you’d rather not wait that long, credit repair is a great alternative.
Yes, even after an item is removed or deleted, your creditors may report the item again. That’s why it’s important to contact both the credit bureaus and your creditors. This will increase the likelihood that inaccurate or unfair negative items will not reappear on your credit. The Fair Credit Reporting Act requires that the credit bureau inform you before they re-report a previously deleted listing.
According to CreditCards.com and CNNMoney, even a single negative item on your credit could cost you over 100 points.
| Negative Item | Credit Score Decrease |
| Late Payment | up to 110 points |
| Debt Settlement | up to 125 points |
| Foreclosure | up to 160 points |
| Bankruptcy | up to 240 points |
| Collection | up to 110 points |
| Hard Inquiry | up to 15 points |
While filing for divorce will not affect your score, some of the symptoms of divorce may lead to problems for your credit. For example, many people miss a payment on their credit during the frenzy of divorce. Or in the aftermath, it may be unclear who is responsible to pay a debt, and payments may be missed. These missed or late payments could adversely impact your credit score.
Yes. When someone takes out debt in your name, it increases your debt utilization ratio and will likely lead to missed payments and possibly collections appearing on your credit. Even after you’ve recovered your identity, these issues could still be lurking on your credit report.
Yes. While your medical history isn’t part of your credit report, past-due medical bills can affect your credit. The good news is, there are laws to protect against certain practices in medical debt reporting. If your credit is being negatively affected by medical bills, credit repair may be a solution for you.
Yes, in both negative and positive ways. Paying your student loan back on time will only benefit your score. Alternatively, missing these payments can cause some significant damage to your credit profile.
The states highlighted in blue are the areas in which DebtCleanse is registered. If you don’t see your state listed yet, please reach out to see how we may be of service.
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