Free Credit Report – a first step

Credit reports and scores are essentially a “snapshot” of one’s credit threat as viewed by a lender at the very moment the report is pulled from a credit bureau. Credit scores vary from 250-900. At our Fort Worth, Dallas, TX based credit repair company we visit with people regularly who have credit scores from all ranges. The higher your score is, the more likely you are to obtain approval for financing and at a reduced rate of interest. Conversely, the lesser your score is, the lower probability you’re able to get financing, and if you’re accepted, you will pay the price with greater rates of interest. For that reason, obtaining higher credit scores can potentially save consumers thousands of dollars during the life of one’s mortgage, auto loan, credit cards, or home and auto insurance premiums, etc.

If you suspect you have bad credit or inaccurate information on your credit reports, there is a first step you should take. Under Federal law, you are entitled to a free credit report from each of the reporting bureaus once a year. The Fair Credit Reporting Act also allows you to obtain your credit score from each of the credit reporting bureaus once yearly for a “reasonable fee”. We encourage you to protect yourself and take the steps in getting your free credit report from each bureau by calling Annual Credit Report at 1-877-322-8228 or by clicking [here].

For those who will be contacting us for credit repair, we encourage you to call us, we will assist you in getting a tri-merge credit report with scores from our preferred credit monitoring service which is required for us to do a detailed analysis to see if we can help you.

To contact us for any help simply click the “Let’s Start” button below. You’ll see “Because We Care” isn’t just a slogan.

What factors determine your Credit Score?

  • 35 Percent is dependent on your Payment History.
    How you have paid your past and existing bills. Considering payments made on time, late, or missed.
  • 30 Percent depends on your Debt Utilization Ratio.
    The percentage of your current debt balances owed based on your total available credit.
  • 15 Percent is based on the length of your Credit History.
    The newest, the oldest account, and the average age and type of accounts.
  • 10 Percent is based on New Credit.
    Considers the amount of inquiries you have and if you opened new credit accounts.
  • 10 Percent is based on your Credit Mix
    This considers the types of credit you use such as: credit cards, retail accounts, installment accounts (personal loans, line of credit loans, auto and mortgage loans).
Credit Repair Dallas - Credit Score Chart

Covenant Credit Repair is ready to help you

We follow the industry’s method: disputing a maximum of 5 issues/per month/per bureau (other firms do 2-3 issues per month/per bureau dragging out the process, possibly taking more time and/or costing more money).
We are persistent. Credit repair can be very overwhelming, frustrating and time-consuming. The bureaus are known to do stall tactics hoping a consumer will give up trying to repair their credit.
We have extensive knowledge on how to assist you in getting negative items off your credit report, and we find it very rewarding to help others.
We know and share proven legal methods with our clients on how to build or increase credit scores. These methods are effective if used properly.
We work hard to combat against the conflict of interest the bureaus have to correct reports. They sell consumer’s data, so the lower the score, the more valuable the data is to them. This is because lenders can then charge higher rates.
We will tell you what’s best for you … not us. After a detailed analysis of your tri-merge credit report, we will quickly determine if we can assist you. We pride ourselves on being honest and having business integrity. If we don’t think we can sincerely help you, we will not take you on as a client.

Credit Repair Fort WorthMost people have heard of the three credit reporting bureaus, Equifax, Experian and TransUnion. Nonetheless, they do not know the average variance in scores involving the greatest and least of one’s credit scores, from the 3 bureaus, is 60 points. That is because of the credit bureaus possessing various things on their reports, which might be accurate, inaccurate or aren’t reported in complete compliance with credit law. As outlined by a current study, almost 80 percent of credit reports have errors, 25 percent of the errors were actually severe enough to result in credit denial. An even greater number of individuals will pay higher rates due to errors on their reports.

Another factor for your credit score to be lower than it could be is if you have become a victim of Identity Theft, which sadly is happening every 2 seconds, according to 2016 Identity Fraud Study, by Javelin Strategy & Research. This rampant and often unknown theft can cause havoc on your credit report and credit scores. Most people are unaware until they go to make a major purchase such as a car or home and they are disqualified.

Steps to Take for a Positive Score

Pay all your bills on time, every single time.

This involves everything from your rent or mortgage payments, auto payments, utility bills, cell phone and cable bills and all your revolving credit lines (like charge cards). It’s recommended you verify your credit report a minimum of one time per year and evaluate it in significant detail. It is possible to repair your own personal credit score. You aren’t obligated to pay for a credit repair company to perform it on your behalf. However, due to the complex nature of credit restoration, many choose to use Covenant Credit Repair as we are experienced and one of only a handful of BBB A+ Accredited Credit Repair firms in all of Texas.

It is best to keep your balance to available credit on credit cards to 25-30% or less.

Lenders want to see a good history of on-time installment payments and various credit cards which are not maxed-out. For anyone who is carrying higher balances on their credit cards, paying them down under 25-30 percent is definitely a priority as it is considered a major threshold to possibly increase credit scores. However, the lower the balance to available credit, the better.

Do use your credit cards responsibly. A lot of consumers make the mistake believing the most beneficial method to repair credit issues would be to not use credit anymore. However, if you do not use your card, the credit card issuers may consider it dormant and close the account. This can strongly affect your debt utilization. See pie chart above.

If you’re afraid you simply can’t manage your credit cards properly, try this as an option: use a charge card wisely only for month-to-month payments of your mobile phone or your utility bills, then do auto payments for the charge card out of your checking or savings account, prior to the payment due date. This ensures that these bills are paid promptly and automatically, and provided that you continue the routine of paying down your charge card balance every month to 25–30 percent or less, your score will typically continue to go up, due to good payment history (which makes up 35% of your credit score), so long as no new negative factors are reported on credit reports. When feasible, it’s recommended to leave your credit cards locked within a secure location.

Continue to keep your accounts active as long as feasible and utilize them only on occasion.

Credit Repair TexasEven if you will no longer be using your credit cards on a daily/weekly basis, the industry still suggests to use your card every month or two to purchase something small, then pay off the balance so those accounts don’t go dormant and get shut down. The length of time each of your accounts has been open plays a key factor in your credit rating. If a charge card is non-active too long, credit card companies may terminate your account and that can have a damaging effect on the average age of all your cards and the debt utilization ratio, either of which may lower your scores.

Keep in mind that all of this will take time.

Routinely adhering to the procedures above over an extended time period may improve your FICO scores to possibly help you be eligible for loans with reduced rates of interest. Improving your credit rating doesn’t occur quickly. If you perform these actions for several months and don’t experience a large rise in your credit score, don’t give up.

As a legal credit repair firm, we simply can’t wave a magic wand and make things on your report quickly disappear, especially accurate items. Be forewarned, if another credit repair firm is promising you quick score increases in a short amount of time, that should be a red flag. Promises like that are illegal.

We are going to perform the bulk of the work, but to get optimal results, you need to be involved in the process. We are here to help, but we cannot want your credit repaired even more than you do. Credit repair will take time, and building a favorable credit record is a process. The average length of our clients needing our assistance is 5 months. That means some clients take 1-2 months and others take 6 months or more (by law, the maximum length for a credit repair contract in Texas is 6 months).

It all depends on your specific credit challenges and if you follow our suggestions and that you do not do anything while a client of ours to cause a negative reaction (such as getting a late pay, collection, judgment, tax lien or maxing out your credit cards). You’ll have to remain on top of your personal credit score and maintain factual credit reports during your lifetime. It is definitely worth it!

Things that can be on your Credit Report
Data that can't be within a credit report

Once you’re a client of ours, we might advise you to consider other legal steps to develop or improve your credit scores.