Frequently Asked Questions (FAQ)

General Questions

What Affects My Credit Score?

There are many different factors that can affect your credit score including your credit cards, any existing loans (car, personal loans), mortgages, home improvements and much more. Even your everyday bills such as power and water bills can affect your credit score.

With so many different financial details pouring into the various credit bureaus, errors are bound to happen – and these errors are more common than you might think.  Errors can range from incorrect names, to mismatched profiles (your name gets attached to someone else’s bad credit score) and much more. With the rampant rise of identity theft, these issues become more and more common, leading to you having to pay higher interest rates, having your loan request denied and even putting your debts into collections.

What Is A Tradeline?

Credit account records that are provided to credit reporting organizations. A tradeline can include a mortgage, line of credit, credit card, or any other credit-related item that is provided by a financial institution or lender.

Tradelines may contain a variety of different data points related to the creditor, the lender, and the type of credit that is being provided. The trade line often contains the name of the creditor or lender, the account or other identifier for the type of credit being provided, the parties responsible for paying the loan, and the payment status of the account. The trade line will also contain particular account milestones, such as the date the credit was extended and closed, the credit limit, the maximum amount ever owed, the date of first delinquency, and the total amount owed as of the last report.

One of the most important features of the tradeline is the payment status. This indicates whether or not payments for the loan are being made on time, and how late the payments are if they are not being made on time. If the payments are being made on time, the payment status will indicate that the payments are being made according to the terms of the credit agreement. Late payments are usually grouped in a range of days according to how late they are. For example, 30 days late, 60 days late, or 90 days late. The payment status may be set to “charge off” if the creditor deems it unlikely that the debt will be repaid, and the status may also indicate that the credit recipient has entered bankruptcy.

Tradelines are used by credit reporting bureaus to develop an individual’s credit score. Higher credit scores are often given to individuals who have several trade lines active, such as a student loan, mortgage, or credit card, for at least two years, and that have neither exhausted the credit line or missed payments.

How Long Before I See Results?

Glad you asked since this is one of the main features of Approved Credit Score! We pride ourselves on fast speed and execution. However, the answer to this question is a bit complicated.

Your goals, situation, and how much work you need done can greatly effect how fast we can get everything done for you. We proudly average around 2-8 weeks for most clients, whereas our biggest competitors average 3-6 months- sometimes even up to a full year! Who’s got time for that?!

What Are the Three Credit Bureaus?

A credit bureau – sometimes called a “consumer reporting agency” – is a business that collects relevant consumer information from creditors and courthouses, and then sells that information to interested parties such as potential lenders. Such information is sold in the form of a credit report. In the U.S., the three major credit bureaus are TransUnion, Experian, and Equifax.

Do You Offer Debt Settlement?

We focus upon how your credit report looks. We work to help you safeguard your financial reputation so that you can get the credit you deserve.

On the other hand, debt settlement companies offer something very different – they negotiate with your creditors to create payment plans. Sadly, sometimes those debt negotiators can make your credit reports look even worse. Credit compliance is unique. Rather than settling your debts, they work to help ensure that problematic negative items on your credit report are substantiated, relevant, accurate and reported fairly. And they work hard to help get them removed when those standards are not met.

What Are the Costs Associated with Your Service?

Credit Report – We recommend using a free trial via Equifax to get your report. Click here to visit their website. Most of our competitors charge $15-$20 for this free service.After analyzing your report, we will then be able to

Only after analyzing your report and discussing your goals will we then be able to quote you on your case.

What Is the Fair Credit Reporting Act and Why Was It Created?

The Fair Credit Reporting Act (FCRA) was written in 1970 as an amendment to the Consumer Credit Protection Act. The FCRA provides additional measures of consumer protection in the areas of fairness, accuracy, and privacy of the information collected by the credit bureaus. It also allows you to personally engage in credit compliance and maintenance processes, verifying that the information in your credit report is correct.

Read more: Wikipedia | Equifax

What Is a Charge Off and How Do I Remove or Fix Them on My Credit Report?

When an account is unpaid for more than 180 days, a creditor usually writes off the debt as a loss on their financial statements. This is known as a charge off. Once a debt is charged off, it is either transferred to an in-house collections department or sold to a third-party collection agency who will likely contact you to recoup the balance. Often times our attorneys find errors in this process, and can sometimes get the collection entirely removed and you never have to pay a cent!

How Long Does It Take to Fix Bad Credit?

There is no fast and easy answer to this question. The time it takes to rebuild your credit is completely dependent upon your personal situation. We are much faster than our competitors and average 2-8 weeks for most clients.

What Is a Credit Compliance Company and How Can They Help You?

Although you have the ability to maintain compliance alone, seeking the help of an experienced credit compliance company is an option. A worthy advocate is defined by their actions. A good credit compliance company will help you:

  • Understand how to read and analyze your credit reports
  • Understand how your credit scores are determined
  • Learn strategies to continually improve your credit standing

In addition, they’ll take charge by:

  • Working with creditors and the credit bureaus on your behalf in order to resolve issues
  • Utilizing the provisions within federal consumer protection laws to help you achieve the credit you deserve
  • Representing you fairly and honestly

We personify these principles in the work we do. Choosing us will allow you to take advantage of our proven, three-step process:

  1. Check. When you sign up, we instantly pull your credit reports. We then organize the information in a way that helps you to identify items you may want to challenge or change. This helps us to build a game plan to fit your personal goals and needs.
  2. Challenge. This is where it is so critical to have the experts on your side. We interact directly with the credit companies and help them to meet their obligations as applicable to your particular situation and plan. Then, we communicate with the credit bureaus to confirm that the appropriate changes have actually occurred. We know the industry, and we know how to use the rules to protect you.
  3. Change. We make it easy to stay connected so that you can monitor your progress with helpful tools, including:
    • A personal online dashboard, allowing you to view your account and credit compliance progress 24 hours a day.
    • Dedicated Approved Credit Score member advisors to help you navigate through the credit compliance process.
    • A monthly online credit score analysis, providing you with the tools and information necessary to continually improve your credit.
    • Identity theft insurance to protect you in case your credit information is stolen
    • Updated credit reports on a monthly basis.
    • An updated credit score every 30 days.
    • Mobile apps and customizable text alerts, allowing you to take credit compliance with you and receive updates wherever you go.
Where Can I Fix My Credit Score?

Several laws provide consumers the ability to question creditors regarding accounts that are ultimately reported to the credit bureaus. Everything appearing within a credit report must meet three consumer protection standards: (1) Information must have been fairly reported, (2) entirely accurate, and (3) fully substantiated. In this regard, federal consumer laws protect all U.S. citizens, allowing everyone access to the same tools and resources.

Approved Credit Score is proud to help our members use these universal tools. Although our main office is based in Orange County, California, our services are available online and by telephone. Our skilled advisors will answer all your questions and help you on the path to better credit. When you work with us, credit compliance is possible from the comfort of your own home.

Can I Get a Loan with Bad Credit?

While bad credit does limit your borrowing options, it may still be possible to find a loan with bad credit . However, the question remains, is a bad credit loan worth the disadvantages it carries?

When a lender approves a loan, they attach an interest rate based on your credit score. When your credit is low, a lender assumes that you are at greater risk of defaulting. To mitigate this risk, they increase your interest rate, thereby increasing the cost of your monthly payments as well. If you do default on the loan, a higher interest rate has allowed your lender to collect additional funds, offsetting the losses they incur.

Although the loan policy is logical, it certainly isn’t cheap. Signing up for a bad credit loan is sure to cost you more in the long run. Consider the following example:

Steve’s credit score is 770, ranking him among the top scores in the country. He recently bought a $400,000 home with a 30 year fixed mortgage. His credit score allowed him to secure the best interest rate on the market.

Across the street, Bill is attempting to buy a house that also requires a $400,000 loan. Despite the identical price, Bill’s credit score is a dismal 659. As a result, the bank will only approve Bill’s loan with a high interest rate attached. Over the next 30 years, Bill will pay over $650,000 more than Steve in accrued interest.

Before considering a bad credit loan, why not take steps to improve your financial stability? Approved Credit Score can help you pursue the better credit score you deserve, allowing you to pursue better interest rates in the process. Don’t settle for paying more money over the life of your loan. Play it smart and focus on credit compliance first.

How Much Does Credit Compliance Cost?

Make no mistake-bad credit comes at a cost. Credit affects every area of your life, from your ability to buy a house to the way potential employers view your application. Those living with bad credit understand the challenges it causes, including:

  • High interest rates on home mortgages, credit cards, auto loans, student loans, etc.
  • Unwilling lenders/creditors
  • Unmanageable debt
  • High insurance premiums
  • Fewer job opportunitiesIn addition to costing more money, bad credit limits your financial options and threatens your fiscal stability. If you’re looking to make a positive change, the time is now. When you retain our service, you’ll receive:
  • A personal online dashboard, allowing you to view your account and credit compliance progress 24 hours a day.
  • Dedicated member advisors to help you navigate through the credit compliance process.
  • A monthly online credit score analysis, providing you with the tools and information necessary to continually improve your credit.
  • Identity theft insurance to protect you in case your credit information is stolen.
  • Updated credit reports on a monthly basis
  • An updated credit score every 90 days
  • Mobile apps and customizable text alerts, allowing you to take your score improvement process with you and receive updates wherever you go.

When considering the effects of bad credit, it’s clear that a better life exists with a positive credit score. Make the decision to invest in your future today. Good credit is priceless.

Why Is Credit Compliance Important?

Credit affects every area of life. When your credit is bad, it follows that your life may face similar hardships in the areas of:

  1. Loan applications.
    Lenders rely on credit to recommend new customers. When your credit is low, your borrowing power is stifled by risk. In this economy, mortgage and auto lenders are tightening their restrictions when it comes to drafting new loans. More is required of the average borrower, including a sizable down-payment and a credit score of 720 or higher. If your credit score is stalled, it could spell trouble when applying for a new loan.
  2. Interest rates.
    Interest rates depend heavily on your credit score, a number that is calculated based on the level of risk found in your credit report. If your past is peppered with late payments, collections, bankruptcy, etc., the result may equal higher interest rates. As your credit score improves, you’re likely to see a reduction in interest, allowing you to save money over time.
  3. Insurance premiums.
    Insurance is the business side of risk mitigation, so it’s no surprise that a clean credit report results in better rates. Insurance providers rely on your financial track record to determine your risk levels in other areas of life. A low credit score is often viewed as high-risk behavior.
  4. Employment opportunities.
    Many employers now require credit checks before hiring a new team member. The job market is competitive, and managers use this strategy to gauge a new hire’s level of responsibility. Despite your qualifications, a bad credit report is likely to make you seem disorganized and careless—two qualities that should never appear on your resume.
  5. Savings.
    Favorable loan terms, interest rates, insurance premiums, and employment all add up to one sum: savings. A good credit score means leaner options. The less money you spend, the more you’ll have to save for emergencies, retirement, and education.
  6. The U.S.Economy
    You aren’t the only one who benefits from better credit. The U.S. depends on responsible behavior from its citizens to keep the economy running smoothly. Roughly 70 percent of the Gross Domestic Product (GDP) is fueled by consumer spending. The GDP is the current market value of all goods and services. When consumer debt exceeds an amount that government can safely liquidate, inflation occurs to bridge the gap. This process devalues the dollar and drives up market prices, making it more difficult to maintain the same standard of living over time. Americans are forced to spend less, resulting in an economic stall. Extreme cases can lead to national depressions and crises such as the housing market crash. While spending too little is never good for the economy, spending too much may be equally damaging.

When it comes to good credit, the stakes are high. Do yourself and your country a favor by taking the necessary steps to improve your life. It’s never too late to make a change.

Why Do I Need to Supply a Full Credit Report? Isn't Credit Karma Good Enough?

Credit Karma uses their own proprietary scoring method called “VantageScore”. This is what allows them to offer their service free. However, lenders use data provided directly from the 3 bureau’s, Equifax, Experion, and TransUnion, so we need the reports directly from them. Click here to read more about Credit Karma’s system on their website.

What Is In My Credit Report?

Your credit report contains a wide range of information about you, including any credit cards or store cards you own (and your faithfulness in paying them). They also contain information about where you’ve lived previously and many other personal details. Information about home and auto loans can also be found on your credit report. If you’ve made a major purchase or are paying on one or more credit cards, all of these details are feeding into your credit report and affecting your credit score over time, which is why it’s more important than ever to make sure your credit report is correct and accurate.

What’s more, lenders and other financial professionals often refer to your credit report to judge your creditworthiness with regards to a loan application.  Everything from the interest rates you pay to actually getting approved is hinged upon your credit report.  If you’ve never requested yours, or it has been awhile (over a year), it is in your best interest to do so immediately – and we can show you how!

Is My Social Security Number (SSN) Displayed in My Credit Report?

Simply put- NO!

Your confidentiality and privacy are our biggest concerns. We are extremely professional in handling all documents and use encrypted servers and the best internet security that exists today.

Is Credit Compliance Worth It? Why?

To know whether credit compliance is worth it, you just have to look at what your credit impacts. These days, it seems like it’s just about everything. When you start realizing how far it goes, it’s easy to do a little math. Not having ideal credit can cost you thousands and thousands of dollars over the course of a home or car loan. It can keep you from getting insurance coverage or even a job. It can make even everyday needs and decisions more difficult.

When you compare this to the confidence and assurance of feeling in control of your credit situation, the value of credit compliance is priceless. Luckily, having the experts at Approved Credit Score working to help you tackle your credit issues will impact the things you value most.

Question still not answered?

Just give us a call at +1-800-409-9505 or click here and we’d be happy to answer any questions you may have!