Could a typo be ruining your credit score?
How to clean your credit report faster so you can get approved to buy the things you want
Style Magazine Newswire | 2/11/2020, 11:09 a.m.
Three out of five Americans have an inaccuracy on their credit report. A single data entry mistake may cause you to pay higher interest rates and make it difficult to qualify for a home or car loan, or even get a credit card. “Most people don’t know they have a federal right to clean inaccuracies from their credit reports,” says credit score guru Alex Miller, founder of Alex Miller Credit Repair, a leading credit score improvement company.
“The Fair Credit Reporting Act gives you the right to investigate negative accounts on your credit report. If an account is not roueported 100% accurately, you have the legal right to get it expunged,” explains Miller, whose business helps an average of 125 clients a week to improve their credit scores.
Errors might include an inaccurate payment amount, which can affect your debt-to-income ratio. Or, your report might have negative accounts that aren’t even yours! “By expunging these inaccurate negative accounts and moving credit scores from the 500s to the 700s, we’re enabling people to qualify for homes, new cars, business loans and credit cards sooner.” Persistence is essential. “The hardest thing is finding what’s inaccurate about a negative account. But there’s nearly always something,” says Miller.
Once homeless, Miller understands how bad credit can impact your life. In less than 2 years, he has grown his Houston-based credit repair business from a start-up to $5 million, with 60 employees and four locations in the U.S. and overseas.
What is a good credit score?
The lowest credit score you can have is 350; the highest is 850. “If your credit score starts with a 3, 4, 5 or 6, you have negative credit. Credit doesn’t begin to get positive until you hit 680,” explains Miller. “To have great credit, you need to be in the 700s. No one needs an 800 or better. That’s more for bragging rights.”
What affects your credit score?
Debt collections, repossessions, foreclosures, judgments, tax liens and bankruptcies can all cause your credit score to decline. But most people are shocked to learn that late payments should be feared the most. “Late payments can’t be fixed and can drop anyone’s credit by as much as 125 points. That’s more than a bankruptcy! You’ve got to make 24 months in a row of on-time payments for a late payment to correct itself,” says Miller.
Credit scores increase according to how many positive accounts you have, after the inaccurate negative accounts are deleted. “Ideally, you want at least 5 positive primary accounts in your name,” says Miller. “You get points for paying on time and having a healthy mix of credit. In the credit world, history is also a huge part of your score. You’re more apt to get approved for a larger loan amount when financial institutions can see a track record of borrowing money and paying it back on time,” Miller explains.
How does credit repair work?
If you’ve tried credit repair in the past, you may know that most companies only dispute 2 to 3 accounts per month. That pace can be discouraging. “We prefer a more aggressive three-round burst strategy because we don’t believe in dragging out the process,” says Miller. In three to six months, Alex Miller Credit Repair’s results-driven approach does what takes other companies several years to accomplish.