Credit Question Entry

Welcome Members of Kimberly’s Relocate to Tennessee Facebook Page!

First and foremost, we want to recognize the passion Kimberly has for her community! Not many would go out of their way to help offer this kind of service.

Secondly… welcome to Credit Bodyguard! We are excited to hear your credit-related questions and even more excited to get you the answers. Please take some time to read our example Q&A’s and fill out the form below, more information is always better concerning credit.

Thanks and talk to you soon!

Example Q&A – Credit Repair

Question: What if my scores are beyond repair?

Answer: Fret not because credit is forgiving. Making late payments definitely hurts your score, but they hurt less the farther out they are. They can be removed completely only if the associated account is closed and the late payment is not new. Something to keep in mind, there is no miraculous dispute letter that will absolve you from debt you actually owe. Start making better decisions and your scores will climb. Settle bad debt in hopes for a deletion and your scores will jump. The majority of my clients are score-worthy in 6 months or less.

Example Q&A – Credit Cards

Question: How do my credit cards affect my credit scores?

Answer: Well, 30% of your credit scores are if you have credit cards and how you manage their balance to limit percentage. Balance to limit can be described as the ratio of how much you owe to the account’s limit, i.e. a $100 dollar card with a $50 dollar balance would be a 50% balance to limit. A lower percentage almost always translates to more points. The only case where this does not hold water is having a 0% balance to limit. The rules of credit are specific, not complex. Creditors have infrastructure and overhead to pay for, so by using their services without paying interest is of no use to them. Now, the sweet spot for balance to limit percentage is around 2 – 5%. You have to have credit and you have to pay interest, just not necessarily a large amount of either. Having been in this industry for over 20 years and having seen multiple score simulators, I can confidently say a balance to limit of 20% is better than 50%, 10% is better than 20%, but 5% is better than 0%.