Spearhead Credit Solutions strives to provide credit information and education to individuals throughout Southern California who want more from their credit scores. Whether you have goals of home ownership, entrepreneurship or you merely wish to rid your life of your debt burden for good, contact one of our dedicated credit account specialists to get the process started.
, and we’ll start you on the path to completing your credit goals.
A credit score is a number designed to predict your creditworthiness. The number that represents your credit score is generated by a sophisticated mathematical formula. Each score ranges from 300 to 850. The higher your score, the more likely you are to get an auto, business, or another type of loan.
The lower your score happens to be, the less likely you are to be approved for a loan. If you do happen to get approved, your interest rate will be higher than someone with a good credit score, which can cost you thousands or more in interest rates alone.
Therefore, having a higher credit score can save you money and stress over the life of your mortgage, credit card, or auto loan.
Payment History – 35%
The timeliness of your account payments can affect your credit score, with on-time payments being weighed against delinquencies in the past 24-month period.
Capacity and Amount Owed – 30%
The bureaus want to ensure that the amounts you owe on your credit limits aren’t over a certain percentage, which can weigh your credit score down.
Length of Credit – 15%
How old are each of your accounts? Newer accounts don’t hold as much weight as accounts you’ve had for some time.
Types of Credit Used – 10%
Here, the bureaus weigh your installment loans versus revolving loans.
Most people are aware of the three credit reporting bureaus: Equifax, Experian and TransUnion. The average difference in scores between the highest and lowest of your credit scores from each of the three bureaus is around sixty points. This results from the credit bureaus having different items on their reports, some of which may be incorrect.
In addition to erroneous information, some credit reports have items that are not reported in full compliance with credit law.
A recent survey showed that 80% of all credit reports contain serious errors. That doesn’t account for the small errors our credit experts typically look for.
Our Promise to You
If you cannot remove at least 25% of all negative items from each of the three credit bureaus, we will refund 100% of your fee. Contact us for details.
Pay all of your bills on time, no exceptions.
This includes utility bills, auto payments, mortgage, and all of your revolving lines of credit like credit cards.
Check your credit report at least once per year.
Challenge any items on your credit report that appear fraudulent, incorrect or not fully reported.
Never charge more than 30% of your credit card’s available balance.
Banks like to see a record of on-time payments. They also want you to hold several credit cards that aren’t maxed out.
For high balance credit cards, begin paying them down to below the 30% threshold.
Use your credit cards.
Many people believe that the best way to fix poor credit is to stop using credit for good. If you are afraid you can’t handle your credit cards responsibility, here is some excellent advice:
Pay only your utility bills with your credit cards each month and then pay the balance in full by the due date. This ensures your utility bills get paid on time automatically.
In addition, as long as you keep the habit of paying your credit card balance monthly, your score will continue to rise. Just be sure to keep your credit cards locked in a safe or drawer at home, so you’re not tempted to use them otherwise.
Keep your accounts open as long as possible.
Even if you are no longer actively charging on the card, keep your accounts open and make the occasional purchase, then pay it off. How long each of your accounts has been active is a significant factor in your credit score.
Remember that repairing your credit takes time. Follow the above steps consistently over a long period of time to increase your credit score and allow you to qualify for better loans and lower interest rates. Repairing your credit scores won’t happen overnight. If you do these things every few months and don’t see a large increase in your score, don’t give up! These are habits you have to build and maintain throughout your life. Adopt them, and you’ll be more likely to keep your finances and lines of credit well under control.
Delinquencies (30 to 180 days)
A delinquency on your credit report can remain on file for seven years and begins with the date of the initial missed payment.
Collection Accounts (7 years)
These accounts may remain on your credit report for up to seven years from the date of the initial missed payment (the original delinquency date).
When the collection account is paid in full, it will be marked as a “paid collection.”
Charge-Off Accounts (7 years)
When a delinquent account is sent to a collections company, the charge-off amount will remain on your credit report for seven years from the date of
the original missed payment that led to the charge-off. This is the case even if the payments are later made on the charge-off account.
Closed Accounts (7 to 10 years)
A closed account is no longer available for further use. If you have a closed account on your credit report, it may or may not have a zero balance.
The account will remain on your account for seven years from the date it’s reported closed, whether it’s reported closed by you or the creditor. The delinquency notation will be removed seven years
after the delinquency occurred with regards to late payments. Even after the account becomes positive, it will continue to be reported for ten years from the date of closing.
Lost Credit Card (2 to 7 years)
If you report a credit card as lost, it will continue to be listed for two years from the date you contacted the creditor.
Delinquent payments that occurred before the card was reported lost remain on your credit report for seven years.
Bankruptcy (7 to 10 years)
Chapters 7, 11, and 12 remain on your credit report for ten years from the date of filing.
Chapter 13 is reported for seven years from the filing date. Accounts listed in your bankruptcy court order remain for seven years from the date listed in the bankruptcy filing.
Judgments (7 years)
Judgments placed against you remain on your credit report for seven years from the date of filing.
Tax Liens (15 years)
City, county, state, and federal tax liens remain for fifteen years if they are unpaid. A paid tax lien will remain on your credit score for ten years from date the account was paid off.
Credit Inquiries (1 to 2 years)
Most inquiries listed on your credit report will remain for a period of two years.
All inquiries are required to remain for up to one year from the date of initial inquiry. Some inquiries, however, such as employment or pre-approved credit offers will show only on a personal credit report that you obtain.
As part of our client education protocol, we ensure everyone knows what items a credit report cannot list. This information is necessary so that you never fall for common scams or identity theft schemes.
A credit report cannot list:
Your credit score can rise. You only need to take action. At Spearhead Credit Solutions, we can pair you with a dedicated credit consultant who will remain steadfast in repairing your credit. We are one of the few credit repair companies registered with the Department of Justice. and schedule your private consultation to start on the path to completing your credit goals.