Frequently Asked Questions (FAQ)

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We are not licensed attorneys and do not provide legal advice. All information provided is for educational and informational purposes only. Credit and funding results vary for each client, as every financial profile is unique. We do not guarantee specific outcomes, and all decisions should be made at your own discretion or with the assistance of a financial or legal professional.

Personal credit refers to your financial history, including your credit score, accounts, payment history, and overall financial behavior. It determines your ability to qualify for credit cards, loans, and mortgages.

A credit score is a three-digit number that represents your creditworthiness. It is calculated based on your credit history, payment habits, credit utilization, length of credit history, and types of credit used.

Credit scores typically range from 300 to 850, with higher scores indicating better creditworthiness:

• 300 – 579: Very Poor
• 580 – 669: Fair
• 670 – 739: Good
• 740 – 799: Very Good
• 800 – 850: Excellent

A good credit score is generally 670 and above. Having a good credit score helps you qualify for better loan terms, lower interest rates, and higher credit limits.

A bad credit score is typically below 580. A lower score may result in difficulty getting approved for credit, higher interest rates, and stricter loan terms.

To improve your credit score:

• Pay bills on time
• Keep credit utilization below 30%
• Avoid opening too many new accounts at once
• Keep old credit accounts open to maintain credit history
• Check your credit report for errors and dispute inaccuracies

Your credit score is influenced by:

• Payment History (35%) – On-time vs. late payments
• Credit Utilization (30%) – Percentage of available credit used
• Length of Credit History (15%) – How long your accounts have been open
• New Credit (10%) – Recently opened accounts and hard inquiries
• Credit Mix (10%) – Variety of credit accounts (credit cards, loans, mortgages)

You should check your credit score at least once a month or before applying for major credit like a mortgage, auto loan, or new credit card.

• Soft Inquiries (checking your own score, employer background checks) do not hurt your credit.
• Hard Inquiries (lenders pulling your credit for a loan or credit card) can lower your score slightly.

• FICO Score: Created by the Fair Isaac Corporation (FICO), it is the most widely used credit score. Over 90% of top lenders use FICO Scores for loan approvals, credit cards, mortgages, and auto loans.
• VantageScore: Developed by the three major credit bureaus (Equifax, Experian, and TransUnion) as an alternative to FICO. It is used by some financial institutions, credit monitoring services, and alternative lenders.

Additionally, FICO allows a 45-day window for multiple credit inquiries to count as one (for mortgages, auto loans, and student loans), whereas VantageScore limits this to 14 days. While both use a 300–850 scale, they weigh factors differently—FICO focuses more on credit utilization (30%), while VantageScore emphasizes payment history (40%) and considers trended data (spending patterns over time). If applying for a loan, checking your FICO Score is best, as it's the industry standard, whereas VantageScore is useful for monitoring credit trends.

• Late payments: 7 years
• Collections: 7 years
• Bankruptcies: 7-10 years
• Hard inquiries: 2 years

How Long Does Credit Restoration Take?The time it takes to restore credit depends on the number of negative items, the complexity of disputes, and the responsiveness of credit bureaus and creditors. Some disputes may be resolved in 30 to 45 days, as credit bureaus have a legal obligation to investigate disputes within this timeframe. However, complete credit restoration may take 3 to 6 months for moderate cases and up to 12 months or more for severe credit issues. Consistently paying bills on time, reducing credit utilization, and adding positive credit lines can speed up the process. Each case is unique, so patience and persistence are key to achieving a stronger credit profile.

You can get a free credit report once per year from each of the three major credit bureaus at AnnualCreditReport.com.

The three major credit bureaus in the U.S. are:

• Experian
• Equifax
• TransUnion

• Open a secured credit card
• Become an authorized user on someone else’s credit card
• Apply for a credit-builder loan
• Make on-time payments for bills that report to credit bureaus

• Credit Strong – Provides installment loans that build credit while saving money.
• Self (Self Lender) – Offers a credit-builder loan that reports monthly payments.
• Kickoff Credit – Offers a no-interest credit-building account.
• Grow Credit – Reports your subscription payments (Netflix, Hulu, etc.) as credit.
• Experian Boost – Adds phone and utility payments to your Experian credit report.

Best Tradeline Vendors for Personal Credit

If you're looking to build or enhance your personal credit profile, consider working with reputable tradeline vendors. Below are some of the best tradeline providers for personal credit:

Authorized User Tradeline Vendors:

• Tradeline Supply Company (www.tradelinesupply.com)
• BoostMyScore (www.boostmyscore.com)
• Credit Pro Tradelines (www.creditprotradelines.com)
• Superior Tradelines (www.superiortradelines.com)
• Personal Tradelines (www.personaltradelines.com)

 Primary Tradeline Vendors:

• My Jewelers Club (www.myjewelersclub.com)
• New Coast Direct (www.newcoastdirect.com)
• Hutton Chase (www.huttonchase.com)
• Shop Simplio (www.shopsimplio.com)

These vendors provide different types of tradelines, including authorized user tradelines and primary tradelines, which can help improve your personal credit score by increasing your available credit and payment history length.

• FICO 8 & 9 – General use, most lenders use FICO 8.
• FICO Auto Score 2, 4, 5, 8, 9 – Used by auto lenders.
• FICO Bankcard Score 2, 4, 5, 8, 9 – Used by credit card issuers.
• FICO Score 2, 4, 5 (Classic Scores) – Used by mortgage lenders.

A tradeline refers to an account listed on your credit report, such as a credit card, loan, or mortgage. Tradelines help establish your credit history.

Yes, purchasing tradelines (becoming an authorized user on someone else’s account) can help improve your credit score temporarily, but there are risks.

• Only buy from reputable tradeline providers with verified results.
• Ensure the account is old (3+ years) and has a perfect payment history.
• Don’t rely solely on tradelines—work on building your own credit.

• Pay down high balances.
• Dispute inaccurate items.
• Become an authorized user on an old account.
• Ask for a credit limit increase to reduce utilization.

Yes, paying off debt can improve your credit utilization and payment history, leading to a better credit score.

Yes! You can build credit using:

• Auto loans, student loans, or mortgages
• Rent reporting services
• Utility bill reporting

• Your creditor may charge a late fee
• A 30-day late mark can appear on your credit report
• Your interest rate may increase
• Your credit score may drop

Our Credit Counseling Services involves:

• Identifying inaccurate, outdated, or unverifiable items
• Disputing errors with the credit bureaus
• Negotiating with creditors for pay-for-deletion or goodwill adjustments

How Does a Pledge Loan Work and How Can I Capitalize to Get Funded?

A pledge loan is a type of secured loan where you use your own savings, investments, or other assets as collateral to borrow money from a financial institution. This loan allows you to access funds while keeping your assets intact and earning interest. The lender places a hold on your collateral, and as you make payments, the hold is gradually released. This is a great strategy for building credit, as on-time payments improve your credit profile without requiring new unsecured debt.

To capitalize on a pledge loan and secure funding, consider these steps:

1. Choose the Right Financial Institution: Many banks and credit unions offer pledge loans with low interest rates.
2. Use Your Own Funds as Collateral: Deposit money into a savings account or certificate of deposit (CD) to secure the loan.
3. Make On-Time Payments: Since pledge loans report to the credit bureaus, timely payments boost your credit score.
4. Leverage the Improved Credit Profile: Once your credit score increases, you can qualify for higher credit limits, business loans, or lines of credit.
5. Use the Funds Strategically: Invest the borrowed money in assets that generate income or help build more financial stability.

A pledge loan is a smart way to build credit, secure low-cost funding, and demonstrate financial responsibility, making it easier to get approved for larger funding opportunities in the future.

Errors in consumer credit reports can significantly impact your credit score. Here are the most common errors found:

1. Incorrect Personal Information – Misspelled names, wrong addresses, or incorrect Social Security Numbers.
2. Accounts That Don’t Belong to You – Accounts mistakenly assigned to the wrong consumer due to similar names or identity theft.
3. Duplicate Accounts – The same account appearing multiple times, making it look like you have more debt than you do.
4. Outdated Information – Negative information such as late payments or collections remaining on your report longer than legally allowed.
5. Incorrect Account Status – Closed accounts reported as open, paid-off accounts marked as delinquent, or incorrect balances.
6. Incorrect Payment History – Payments marked as late even when they were made on time.
7. Incorrect Credit Limits – Errors in reported credit limits can affect your credit utilization ratio.
8. Fraudulent Accounts – Accounts opened fraudulently under your name that you never authorized.
9. Incorrect Public Records – Bankruptcy, judgments, or liens inaccurately reported or included after being resolved.
10. Inaccurate Hard Inquiries – Credit inquiries appearing on your report that you never authorized.

How to Dispute Errors:If you find errors on your credit report, you can dispute them by:

• Contacting the credit bureau that issued the report (Experian, Equifax, or TransUnion).
• Submitting a dispute online, via mail, or by phone with supporting documentation.
• Contacting the furnisher (the company that provided the incorrect information) to correct the issue.

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Do’s and Don’ts for Personal Credit

 Do’s:

• Pay all bills on time to maintain a strong credit score.
• Keep credit utilization below 30% to improve your credit profile.
• Regularly monitor your credit report for errors and disputes.
• Maintain a mix of credit types (credit cards, loans, mortgages) for a diverse profile.
• Apply for credit sparingly to avoid too many hard inquiries.
• Keep old credit accounts open to maintain a long credit history.

 Don’ts:

• Do not max out credit cards, as it negatively impacts your score.
• Avoid making late payments, as they can stay on your report for years.
• Do not apply for too many new credit accounts at once.
• Avoid co-signing loans unless you are confident in the borrower’s ability to pay.
• Do not ignore your credit report; check it at least once a year.
• Avoid closing old accounts unless necessary, as it can reduce your credit age and score.