Reviews Credit Law Center

Record Breaking Credit Scores For 2019 and the Average Credit Score By Generation.

We Broke the Record!

In 2019 the average credit score was recorded as being a 703 among Americans and it’s time to get excited! We have broken our record with an average increase of 25 points since 2012 and with the right credit knowledge and repair options, we are sure to continue our climb!

A good credit score is classified by having a score between 670 to 739 and is necessary for achieving the best rate on a mortgage, the best lenders for vehicle financing and to get some amazing rates/ benefits on credit cards!

 

FICO and You

Thought credit score ranges are based on the scoring model used and the credit bureau that pulls your score, lenders prefer Fico scores when making their lending decisions.

 

Check where you fall in the FICO score ranges!

Excellent- 800 to 850

Very Good- 740 to 799

Good- 670 to 739

Fair- 580 to 669

Poor- 300 to 579

 

Fun Facts Through the Generations

-Millennials are leading the charge with an average increase of 25 points in their Fico since 2012!

-The reason why most older generations have a higher credit score is due to long credit history and multiple positive trade lines.

-The Silent Generation (74+) still holds the highest average FICO score of 756!

-Generation Z (18-22) holds the lowest average FICO score of 677!

 

CREDIT REPAIR CONSULTATION

 

Do you have questions about your credit report? If you would like to speak with one of our attorneys or credit advisors  and complete a free consultation please give us a call at 1-800-994-3070 we would be happy to help.

If you are hoping to dispute and work on your credit report on your own, here is a link that provides you with a few ideas on how to go about DIY Credit Repair.

 

Average credit scores by generation

Generation 2018  2019 
Generation Z (18-22) 666 667
Millenials (23-38) 664 668
Generation X (39-54) 685 688
Baby Boomers (55-73) 729 731
Silent Generation (74+) 754 756
Source: Experian using FICO scores  

 

 

How Do I Raise My Scores?

Raising your scores takes time, patience and diligence to achieve safely and effectively. Below are separate blogs written by credit law center to go in depth to the credit building and repairing process.

Want to learn about Building Credit? Click Here

Want to learn about Repairing Credit? Click Here

 

Article Written By- Joe Peters

 

 

Credit Report- What is a Credit Report - Credit Law Center (1)

CLC and Me- The Credit Repair Process

How Long Is This Going To Take?

Credit repair seems like a long and tedious process, but have you ever wondered why it takes to long to complete? Many people often look to repair their credit with a specific goal in mind (like taking out a car lone or purchasing a house) it’s important to know just how long it takes for the process to be completed.

With this in mind, CLC has put together the information below in the hopes of assisting the average borrower understand the credit repair process. If you would like to get started on repairing your credit, just fill out our quick consultation form here.

How Can I Build My Credit?

Get Answers

Getting ready for  your first disputes!

To  start your credit repair journey, first we need to review your credit reports to identify any potential discrepancies and mistakes. There are may tools you can use to check your credit report any time you want. You can always call us to get a free consultation and have a credit adviser go over your report with you or check out a reporting tool like Credit Armour to view and monitor your report! Once you have a copy of your report, it is time for start looking for errors! Missing information, wrong information, entry errors and unverifiable items are just a few of the things you can dispute in the hope of removal from your report!

 

The Sendoff! 

Once we have located and verified the discrepancies on your credit report, dispute letters have to be made and documentation needs to be acquired before we contact the bureaus. The time required for this step differs for everyone, depending on the nature of the disputes and how much information is able to be gathered for the disputes. The dispute process can be done as quickly as a few hours if you have all of the proper information gathered to a few days depending on the documentation needed for your situation!

If you have decided to repair your credit on your own, you determine how fast this part of the process goes with the information your have gathered. If you decide to utilize Credit Law Centers program, the company will help you expedite to get the job done as quickly as possible.

Once you have the first disputes sent off, the clock starts ticking. The credit bureaus have 30 days to contact the creditors to attempt to verify the disputed information and respond. It is always a good idea to send your letters by registered mail, so you have an account of the date they were sent!

Playing The Waiting Game

After 30 days, the credit bureau must respond to your inquiry. In some cases, more documentation may be required if the bureau needs specific information to verify or reject a dispute. As a result, there may be some back and forth prior to the disputes resolution.

There are many times that multiple dispute letters may need to be sent. If there are a large number of mistakes that you found, you usually don’t want to submit more than a few disputed items at a time per each letter.

On average, credit repair can take about three to six months to resolve all of the disputes that you have made. If you have very few items to dispute the whole process could be over in about a month and a half! On the other hand, if you have a large amount of disputes and your credit has never been tended to, it could take the better part of a year!

If you’re doing the work by your self,  you will have to keep a diligent eye on your return letters and work until it is complete. If you have obtained  representation through Credit Law Center, we should be able to give you an idea of how long the repair should take based on  your situation.

Build While Repairs Are Being Made

It is important to remember that just because your credit is being repaired doesn’t mean that your score will shoot up and you will be sitting at that 800 credit score. So even thought the credit repair process may only take 3-6 months, building positive credit could take much longer. Depending on how you go about the credit building process, it could take more than a year to achieve the score you have been pushing for.

There are many ways to build credit and a plethora of different tools at your disposal to  increase your score. From seasoned credit advisers, free consultations, teaching tools and general knowledge, Credit Law Center has your back!

 

Author- Joe Peters

Do you have questions about your credit report? If you would like to speak with one of our attorneys or credit advisors  and complete a free consultation please give us a call at 1-800-994-3070 we would be happy to help.

If you are hoping to dispute and work on your credit report on your own, here is a link that provides you with a few ideas on how to go about DIY Credit Repair.

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Improving Your Credit For A Car Loan

Time For A New Car?

I remember when I was broken down on the side of the interstate in my 92 Jeep Cherokee I thought to myself “My next car is going to be brand new!”  I new that I would need to finance as I was just a twenty something with a low end painting job, but I was hopeful that I would be approved. Flash forward to sitting in the Nissan dealership attempting to find anyone who would finance this twenty some with no credit…spoiler… there was absolutely no one who would accept. At this point I knew that I would have to go about this a different way if I ever wanted to be able to get accepted for financing but had no idea how to begin. I knew I needed to have better credit and luckily I was able to get a consultation from a credit adviser to assist me in the process!  

 

Understanding Your Credit

First off I had to get a hold of my credit report and see just exactly what was going on. My credit adviser directed me to Free Credit Hub where I was able to sign up for credit monitoring and finally see what was dragging my credit! I was greeted with a cacophony of different numbers, phrases and names that filled the pages and made my stomach drop. My adviser walked me through each  line on the report and explained that there were multiple categories that made up the report. Those categories were:

1. Payment History-  35% of your credit score is based on your past bills and how they were paid.

2. Amounts Owed- 30% of your credit score is based on the available credit card limit you’re using and the amount you owe across your accounts.

3. Length of credit history – 15% of your credit score is determined by the credit history you have built. This is based on the average age of your accounts  along with a few other factors. The longer the history, the better the results!

4. Credit mix – 10% of your score is from the mix of revolving credit (credit cards) and installment credit (car loans, mortgages, etc.) you have.

5. New credit – 10% of your credit score comes from new credit accounts that you have established.

 

Time To Build!

Alright, now that I know what exactly makes up my credit, it is time to start building it up! I took 3 easy steps to start building positive credit and the foundation for a strong credit score.

  1. Lowering My Card Utilization– When I got my first credit card I was told to never use more than 50% of the allowed credit and I would be fine. If we look at our credit utilization like a grade card, a 50% utilization rate is a solid F. 30% is about a C rating and the lower you go the better your rating. Keeping your utilization under 10% is an A rating and is sure to build your credit the fastest.
  2. Becoming An Authorized User– Becoming an authorized user is by far one of the easiest ways to build credit and is kind of like passive income. If you are listed as an authorized user on a trusted family members card, their history is listed on your report as well and you don’t even have to use the card! Be sure you work with someone you trust because the negative history will be placed on your report as well.
  3. Pay Your Bills On Time-  Paying off those balances on time is extremely important when building credit as it provides positive credit history and establishes a exceptional trade line. Late payments are one of the largest discrepancies on most Americans credit report!

 

Your Car Loan Will Help Build Credit.

After about 6 months of building up my credit, I was able to acquire financing toward a new vehicle. You don’t need to have perfect credit to acquire a car loan, but it will affect your financing options and future payments. The wonderful thing about this loan is that it establishes another line of installment credit to your account. As long as you are making your payments on time, this installment credit will soon become a wonderful trade line that builds a long credit history. In the end it is all bout finding the right lender for you and managing a positive ascending credit score. If done correctly, you will be on the road that that fabled 800 credit score!

 

 

Do you have questions about your credit report? If you would like to speak with one of our attorneys or credit advisors  and complete a free consultation please give us a call at 1-800-994-3070 we would be happy to help.

If you are hoping to dispute and work on your credit report on your own, here is a link that provides you with a few ideas on how to go about DIY Credit Repair.

Credit Repair- Credit Builder

The 5 Easy Steps To Building Credit

I Have No Credit History!

“I’ll just pay cash for everything.”

I have said many things in my life with the best of intention, but this had to be the one that hurt the most when it failed. When I was younger, like most people out there, I saw credit as a trap to get us to pay double the money for something we couldn’t afford in the first place. I didn’t know that having no credit would affect me in almost every aspect of my life and I learned that having no credit would impact me even harder than having a poor credit score. High car insurance payments, poor rates and high monthly payments on my car and home were just the tip of the iceberg and I knew something had to change!

“OK… but how do I build credit” I thought to myself as I scoured the internet, looking for a referable source of information. Well, after much trial and error and the help of Credit Law Center I happily present my 5 Easy Steps To Building Credit!

Step 1- Acquiring A Credit Card and How To Use It Safely!

So,  to start building credit I got 15 credit cards and…. I’m kidding! No lender in their right mind would set me up with anything other than a secure card.  A secure credit card is the perfect way to start establishing credit while with very little risk. A secured credit cards works the same as any other credit card, but it is backed by a cash deposited. This is a great way to get you begin building your credit and get it to a point where you can acquire an unsecured card later down the line! Once you can acquire the sweet unlimited power of the unsecured credit card, you can begin the task of keeping the over all usage to about 30% of the spending cap. A 30% utilization rate is still about a C+ rating and you really would like to get the utilization rate to around 10-15% in the long run to really build a positive trade line. Just be sure to make your payments on time!

Step 2- Find That Special Someone, Your Co-Signer!

Acquiring a trusted Co-Signer can really get you on the right foot to build credit safely. You need to be extremely diligent however because your co-signer is affected by the positives and the NEGATIVES the same as you. So make sure that both you and your co signer are aware of the consequences of delinquency when dealing with credit, lest you both end up with a credit score in the low 400s.  Attempting a co signer can be difficult for many people attempting to build credit, but a co signer is not the only way to passively grow your credit score!

Step 3- “The Buddy System” -Becoming an Authorized User!

If possible, become an authorized user on a family members or significant others card. This adds their payment history for that card onto your credit files…just make sure they are a responsible cardholder. You don’t need to use the card to reap the benefits as an authorized user most of the time, but please, if you end up using the card, be sure to pay your fair share!

Step 4- You Work for the Bills, Make the Bills Work for You!

Rent- Reporting services like RentTrack take a bill you are already paying and put it on your credit report, showing off how responsible you have been with those on time payments. Not every credit score takes these payments into account, but those that do could be the deciding factor for a car loan! This will be a slower way to build up your credit, but it is a steady

Step 5- Establish Positive Trade Lines and Keep Them Positive!

Paying your accounts on time, low credit utilization, keeping your accounts open and keeping positive credit history is paramount in establishing perfect credit. I say this as one of my steps to building credit because it is important to acquire these habits early! Your credit is an investment, the more that you put into it early, the better off you will be in the long run!

 

Slow And Steady Wins The Race

Though your credit score will not sky rocket from 400- 800 over night, these 5 steps will help you climb! If you can make your payments on time, establish positive trade lines, establish a positive credit history and keep your card usage below 30% then you will notice your score climb. After that, it is only a matter of time until you are sitting high at the fabled 800 credit score! Your credit is like a garden, you need to give it plenty of attention, take care of it and occasionally pick out the weeds for it to flourish!

 

Author- Joe Peters

Do you have questions about your credit report? If you would like to speak with one of our attorneys or credit advisors  and complete a free consultation please give us a call at 1-800-994-3070 we would be happy to help.

If you are hoping to dispute and work on your credit report on your own, here is a link that provides you with a few ideas on how to go about DIY Credit Repair.

Check out Credit Law Center Reviews:
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