Frequently Asked Questions About Credit Loans
The absolute repair in 30 days is not possible. Everything that sounds too good to be true, usually is. Everything will depend on the credit report of each person, what their problems are and what is the strategy to solve it. Minor problems such as claims for improper reports, incorrect inquires can be diminished within that period.
What is the credit score?
We must take into account that score is not the same as report. The score is the number that “qualifies our behavior”. The most commonly used type of score is the so-called FICO Score.
The FICO Score measures factors such as: the age of the credit, the size of the credit, the type of credit, the fulfillment of payment.
What is a credit report?
On the other hand, a Credit Report is specifically requested to know:
- The credit history (reported since when the first loan was opened)
- how much credit has been requested
- how much has been obtained
- if debts have been incurred
- Late payments reported
- Major problems reported such as: bankruptcies, foreclosure, debt consolidation
What are the steps to repair a damaged credit?
First step: know our score and our history.
Second step: Generate a strategy to repair that credit:
- If the problem is that the volume of credit used is high, a strategy is proposed to reduce it.
- If the problem has been delays with respect to the payment date of our obligations, it is necessary to improve in this aspect and generate coherent explanations of what happened.
- If the problem is that many requests for credit have been made, we can rely on credit repair agencies or rating agencies to eliminate these requests.
Can I repair the free credit?
Everything depends on the seriousness of the problem. For example if I have a credit of 620 USD and the causes for my credit to be affected are late payments on the Credit Card, overdrafts etc. To be able to download it without incurring high costs we will need to lower the limit consumption of the credit cards.
It is necessary to lower at least 60% or 70% of the use of the quota. Do not just settle for paying the minimum. Once we have stabilized our use limits in a healthy below 50% it will give us as a result of a recovery in the credit scores in about 30 or 60 days and it is possible to recover between 30 and 50 points.
What are specialized credit repair agencies?
Credit Repair Agencies, your job is to advise you to generate an adequate strategy to improve your credit, not only at the point level but to correct problems and inefficiencies in the credit report.
How to protect yourself from fraud in credit repair?
Be incredulous about immediate solutions without first evaluating the user’s profile. In the case of problematic cases, they can take between 4 and 6 months and have a high cost. These services are usually not free or immediate and will not be resolved in 30 days. Select a professional in the area and be willing to pay for their services is recommended.
What are the main steps to obtain a loan if I am undocumented?
The first thing: Comply with the rules, look for a tax identification number, an ITIN Number.
Second: Request a secured credit card by making a deposit. If a secured credit card is requested, you should think very carefully about the volume of expenditure.
If you have a 500 USD card, you should not use an amount greater than 300 USD to have a good credit rating.
The ideal thing is to make an effort and obtain a credit card of 1000 USD that can be used for a budget of 500 to 600 USD monthly and thus be able to build a good score.
Does opening a company automatically create credit for the company?
This is a myth, it is not a solution. When a company is opened it is effectively a Corporation that allows personal protection in terms of business activities. As long as the company does not have a commercial credit during the first years, the credit of the owner or the owners will be subject.
A good strategy is to request a first line of credit or a credit card for the business (based on the analysis of your personal credit). If it is approved, you can expect the bank to offer you the possibility of obtaining an insured, take the option and This option, start generating credit.