9. How does debt affect my credit score? |
The amount of debt you have weighs heavily upon your credit score. Your "debt to credit" limit is approximately 30% of your Credit Score. When you reduce the amount of revolving debt you have, not only will your credit score increase, your interest rates will drop. According to the credit scoring formula, you should not use any more than 40% of the available credit limit per each credit account.
If your debt is mostly charge offs or collections accounts, your debt is destroying your credit score. Bad debt such as charge offs place a number 9 for each account on your credit report. The number 9 signifies that not only do you have a debt, but you are also not paying as you agreed in the credit contract. The only way to get a charge off removed from credit report is to pay off the debt.
The best way to get the number 9 removed is to have FH Financial settle the debt with the creditor. FH Financial will get at least 50% of the debt eliminated and get a Debt Settlement agreement with the creditor to show that the debt is paid in full with a $0 balance and have the number 9 removed from all three credit bureaus.
Click here and complete the Consultation form
to have your Debt Eliminated by 60% and have the charge offs removed from your credit report. |
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