Frequently Ask Questions
What is Credit Report?
A: Your credit payment history and profile is the makeup of a credit report. These files or reports are maintained and sold by credit bureaus and other consumer reporting agencies. The largest three credit bureaus are Transunion, Equifax, and Experian. You have a credit record with these agencies if you have ever applied for a credit or charge account, a personal loan, or a job. Your credit record contains information about your income, debts, and credit payment history. It also indicates whether you have defaulted on any debts, have any outstanding judgments or child support, and whether you have any bankruptcies.
How does credit repair work?
A: Credit repair is 100% legal. It works because of a federal law called The Fair Credit Reporting Act, or FCRA. The FCRA gives you the right to dispute any item on your credit report. If that item cannot be verified within a reasonable time (usually 30 days) it must be removed. Even accurate negative items can often be removed or negotiated away. This law is the basis of all credit repair and the foundation of our business.
What do the different scores mean?
A: 800 and Higher (Excellent)With a credit score in this range, it will be unlikely that a lender will ever disapprove your loan application. Additionally, the APR (Annual Percentage Rate) on your credit cards will be the lowest possible. You’ll be treated as royalty. Achieving this excellent credit rating not only requires financial knowledge and discipline, but also a good credit history. Generally speaking, to achieve this excellent rating you must also use a substantial amount of credit on an ongoing monthly basis and always repay it ahead of time.
700 – 799 (Very Good) 27% of the United States population belongs to this credit score range. With this credit score range you will enjoy good rates and be approved for nearly any type of credit loan or personal loan, whether unsecured or secured.
680 – 699 (Good) This range is the average credit score. In this range approvals are practically guaranteed but the interest rates might be marginally higher. If you’re thinking about a long-term loan such as a mortgage, try working to increase your credit score higher than 720 and you will be rewarded for your efforts – your long-term savings will be noticeable.
620 -679 (OK or Fair) Depending on what kind of loan or credit you are applying for and your credit history, you might find that the rates you are quoted aren’t best. That doesn’t mean that you won’t be approved but certain restrictions will apply to the loan’s terms.
580 – 619 (Poor) With a poor credit rating you can still get an unsecured personal loan and even a mortgage, but the terms and interest rates won’t be very appealing. You’ll be required to pay more over a longer period because of the high interest rates.
500 – 579 (Bad) With a score in this range you can get a loan but nothing even close to what you expect it to be. Some people with bad credit apply for loans to consolidate debt, in search for a fresh start. However, if you decide to do that then proceed cautiously. With a 500 credit score, you need to make sure that you don’t default on payments or you’ll be making your situation worse, and could potentially be headed towards bankruptcy, which is not what you want.
499 – Lower (Very Bad) If this is your score range you need serious and professional assistance with how you handle your credit. You’re making too many credit blunders and they will only get worse if you don’t take positive action. If you are thinking of a loan then keep in mind that if you do find a sub-prime lender (which won’t be easy), the rates will be very high and the terms will be very strict. We recommend that you use our services to fix your credit first, and only then move on to applying for a loan.
How is my credit score determined?
A: 35% – Payment History
30% – Debt
15% – Length of Credit History
10% – Types of Credit
10% – Number of Credit Inquiries
What tips can you offer regarding my credit score?
Pay your bills on time all the time. Clean up past credit mistakes Keep your credit card utilization low – under 30% Keep your debt low Do not live above your means Protect yourself against Identity theft Save, save, save and budget your money
What is a financial coach?
A financial coach is a personal finance expert that is knowledgeable about debt, credit, saving, retirement, budgeting, paying for college, and spending wisely. They are not financial planners, although they do educate people on the different types of investments and insurance. EC Financial Solutions do not advise and/or provide complex investment, tax and/or stock market advice. We do not sell insurance, stocks/ bonds, and/or annuities. We do not sell, we educate with the heart of a teacher.
