Answers You Need
What is credit?
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Credit is when you receive money, goods or services and you commit to paying them in the future, usually with additional interest. Today, we use credit to purchase a lot of things, from houses and cars to groceries and clothing.
When used responsibly, credit may be a useful tool. Otherwise, you will be faced with negative consequences that will make your life more difficult.
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How Long does it take to restore my credit?
We let our clients know that their credit didn't get there overnight so it does take time. Anywhere between 3-6 month if you follow all directions in the credit lesson program.
What is a credit score?
Your credit score is a three-digit figure on a scale of 300 to 850 that indicates how creditworthy you are, which means, how good you are with credit and how confident you can be in reimbursing what you borrow. Potential lenders will use this number to determine which types of credit cards and loans to offer you. Usually, the higher the score, the better the deals.
There are different types of scores, but the two most popular are your FICO score and your VantageScore. They are calculated according to the information in your credit report.
What hurts your credit?
Your credit can be lowered much more quickly than it can be, so it might help to look at these things that can hurt your credit:
- Failing to pay bills in time.
- Filing due to bankruptcy or foreclosure.
- Ask for a lot of credit accounts.
- Have a high credit card balance.
- Ignore questionable negative items on your report
What score do I need to buy my house?
There are a lot of factors that come in to be approved for a mortgage, but you will need at least a score of 620 to be approved for a traditional mortgage.