PROFESSIONAL CREDIT REPAIR COUNSELING

You're a person, not a number, right? Unfortunately, more and more companies don't feel that way nowadays, which is why bad credit repair is so important

Your credit rating is often the only thing that matters to them. And, it's not just about getting loans and credit cards anymore -- decisions about your insurance prices, mortgage rates and even employment are now based on your credit score. This has led to a booming fast credit repair industry, as more and more people realize just how many areas in their life can be hurt by a bad credit score. If you're worried about how a poor credit rating will affect your future (and if you don't want it to adversely impact everything in your life), turn to Vitesse Financial, one of the best credit repair agencies, for advice on how to repair your bad credit.

At Vitesse Financial, we have 15+ years of combined experience in credit repair counseling , making us a smart choice for anyone who is looking to raise their credit score. We thrive on "righting the ship" when repairing credit score woes. This also goes for making sure you're satisfied with the service you receive when you have us look into repairing credit report troubles.

Click here to learn more about credit repair services provided by Vitesse Financial.

Credit history or credit report is, in many countries, a record of an individual's or company's past borrowing and repaying, including information about late payments and bankruptcy. The term "credit reputation" can either be used synonymous to credit history or to credit score.

When a customer fills out an application for credit from a bank, store or credit card company, their information is forwarded to a credit bureau, along with constant updates on the status of their credit accounts, address or any other changes you may have made since the last time they applied for any credit. There are many factors which contribute to this score, which all need to be taken into consideration when improving a credit score.

This information is used by lenders such as credit card companies to determine an individual's or entity's credit worthiness; that is, determining an individual's or entity's means and willingness to repay an indebtedness. This helps determine whether to extend credit, and on what terms. With the adoption of risk-based pricing on almost all lending in the financial services industry, this report has become even more important since it is usually the sole element used to choose the APR (annual percentage rate).

How credit rating is determined

Credit has come a long way since the first known financial records were discovered over 3,000 years ago in Mesopotamia . These records detailed a straightforward relationship between lender and debtor; that is, whatever was owed was paid back in full without interest. Once the idea of interest was introduced, credit systems became more and more complex. Like today, rates of interest can vary, from reasonable to skyrocketing high, depending on the arrangement or transaction. These days, contemporary credit systems have their own controls on interest rates and other relevant factors. Everyone nowadays is assigned a credit rating (also known as a credit score).

Methods for calculating credit ratings can vary by country, but they take the same basic facts into consideration. Your credit rating is assessed based on your payment history, whether or not you live within your means, signs of responsibility and stability, the number of credit inquiries your record has sustained, and the number of lines of credit you have open. Contrary to popular opinion, closing lines of credit to consolidate debt can be to your detriment instead of to your advantage. This is because a typical credit rating formula takes into account the amount of credit you have and amount you use. As a result, reducing the total amount of credit you have can make the balance carried appear larger than it actually is and cause points to be deducted from your final score.

Reasons for Adverse Credit History

Your credit score determines your credit worthiness. This score is a reflection of credit history. The credit history of consumers and businesses is tracked on a routine basis by credit reporting agencies. Credit history is usually updated monthly and includes information such as payment history, credit limits, high and low balances, and severity of delinquency with debt. Every financial transaction having to do with repayment is recorded. Lenders, banks and credit card companies look at your credit history to assess whether you are a good risk or a bad risk when it comes to spending money and paying it back. If your credit score is below a certain number, you may end up being designated as having an adverse credit history. You may have missed some payments along the way, and this can make lenders, banks and credit card companies a bit nervous about whether or not you'll be able to repay your debt on time. Adverse credit history is also known as "poor credit history," "non-status credit history" or "impaired credit history." Because of this label, you may be denied credit altogether or be offered a reduced line of credit with a high interest rate. To overturn a designation of adverse credit history or to change your credit score for the better, you can turn to debt counseling or debt consolidation services for assistance.

Do know that in a lot of cases, if you end up with being tagged with an adverse credit history, it might not be your fault. Mistakes on credit reports are not uncommon. Be sure to request a copy of your credit report and review it thoroughly.

>> Credit Repair Information Part II <<