Credit Readiness Program

According to the Merriam-Webster Dictionary, the word "credit" is derived from the Old Italian word "credito," and from the Latin word "creditum," meaning "something entrusted to another." Credit is a provision of money, goods, or services with the expectation of future payment. Credit also means credibility, honor, power, and financial or commercial trustworthiness. The word "credit" is equal in meaning to "character." A person's character represents one's reputation, moral excellence, and firmness. Character is the complex of mental and ethical traits which distinguish individuals. Credit and character represent a person's name. Your credit and character are substitutions for your name. Your credit reports reflect the moral character demonstrated in the past and current present. That may be a tough pill to swallow, depending on your specific finances have been managed overall up until this point.

As you can see, having a good credit history is very important and should be taken seriously. It is not easy to navigate in life without a good name. FACT: Two people can finance the same thing, and one will pay significantly less based on their good name and established history. The other person could even pay as much as double or treble the cost over the life of the loan or credit for the same item. It is time to raise the status of your credit and strengthen your "financial" name - your FICO score. Wouldn't you agree?

Credit is scored based on factors, which include payment history, amounts owed vs. credit limit, overall credit history length, new credit, credit mix, and the number of credit inquiries (credit applications) within a recent period. Banks, financial institutions, and other investors view the best prospective client as someone who has access to credit but uses a small percentage of it (revolving credit cards) and always pays their obligations on time. Your credit reports are a reflection of your moral character. So let's translate it as it relates to your past credit history up until now: HIGH SCORES are generally a reflection of an ethical, honest person with integrity. Each bureau is different in calculating, so for this analysis, the beginning of the high score category is 740. No scores indicate that your financial habits have yet to be established (through traditional accounts). Med - High scores (see general graph) mean fairly decent credit, although you may be overextended with a great payment history overall. Low scores (Less than 640) represent the opposite of high scores, and your past habits may demonstrate irresponsibility with accounts entrusted to you by the credit institutions. If your scores are low or limited, let’s work together to change the narrative while leaving the past habits in the past.

There are exceptions, of course, but these are general references. Maxed-out or high-balance credit cards reflect living above your means; you use more than you can afford to repay within a reasonable timeframe. Late payments and collections generally tell potential banks, credit card, and loan companies that you still need to establish a track record of keeping your word. The institutions kept their agreement by providing you access to credit, not as an extension of your bank account, but as a means to make a purchase that must be repaid on time. If you want a good rating, you must keep your promise to pay on time. When you pay on time and communicate with your creditors, it is generally an indication that you are honest. When we have collections, we use money and do not pay it back, a habit closely kin to financial theft. Banks extend credit to individuals who have demonstrated honesty, responsibility, and integrity in their economic life. 

Life happens. Sometimes our credit is a reflection of hard times, and that's okay too. The good news is that your credit can be restored no matter how bad it may be today. Take a moment and consider the following question: When lenders read your name as a credit report, what would you like them to see? Are you ready to take the necessary action to achieve your desired standing as it relates to your credit history?

Our credit restoration program will be highly effective in ensuring the institutions conform to the rules in their reporting and clearing up your credit file if they do not - but the debt does not go away. Generally speaking, and with the exception of medical debt, lenders will require you to show consistent payment history on validated closed debt or establish a payment arrangement with a payment history of at least 90 days before the lender will approve a mortgage. Alternatively, depending on the circumstances, did you know you may be eligible to negotiate an agreement where you pay a fraction of the full balance, to settle the debt? Some companies will take as low as 20% of the balance depending on the type of account, and mark your account as satisfied! Believe it, or not, doing so can help you get approved for a mortgage, but do not do this, unless your loan officer specifically instructs you to do so, in your particular situation, because sometimes you can adversely affect your credit scores.

We hope you find this information helpful to put you on track to having a report that reflects your true self, not your past or current situation. Our goal is to help you live your best life by assisting you in preparing your credit for your goals.