Credit Help

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What is a credit score and why is it important?

• Your credit score is a 3-digit number between 300 and 850. The higher the number, the better your score. Scores over 680 are considered ’prime’.
• Credit scores are very important. Lenders use your credit score to determine if you are a good credit risk. They also use your score to decide what interest rate you will pay on a loan.
• Credit scores can even have an impact on receiving job offers, getting a government and/or company security clearance, qualifying for housing, and some insurance policies. Many employers use credit scores to analyze job applicants. Apartment landlords often use credit scores before deciding whether to rent to a prospective tenant. Insurance companies often use credit scores to determine the cost of auto insurance.

Can my credit be repaired?

• Usually. Fixing your credit is a methodical and disciplined process - there is no secret that will change your credit overnight. But, you will be surprised how quickly you can make a positive impact. Some Merit Consumer Services customers have seen improvements in their credit score by as much as 100 points in six months.
• The first step is to find out exactly what your credit report says. Merit Consumer Services can provide you with your credit score and information about your delinquent debts. You may also want to request a copy of your credit report from each credit bureau. You can order your credit reports at no cost from www.annualcreditreport.com.
• There are a lot of factors that go into determining a credit score. The most important factors are:
• • The amount of credit you use
• • Your payment history
• • The length of your credit history

Can debt mediation improve my credit score?

• Yes, in many cases. Debt mediation can reduce the total amount of debt you have or get the debt you have on an affordable payment plan. The less debt you have, the more income you keep. And more income helps you pay your bills on time. As a result, your credit score should get better every month.

I have had past problems making payments on time. Will this prevent my credit score from getting better?

• Most of us have had this problem at some point. The best and fastest way to overcome a past credit problem is to get your income and expenses into balance and start making all of your payments on time.
• The faster you can rebuild a good history, the faster you can overcome your problems.