Frequent Questions About Credit

What is the greatest impact on credit history?

The payment history. It is approximately 35% of your credit score. This information can positively affect your credit score if you have a credit history of paying all your bills on time all the time. However, late payments will negatively affect your credit score.

How does a late payment affects my credit score?

Your credit score may drop. by approximately by 90-110 points.

How do I start building credit history, if I don’t have open accounts?

• Open a secured credit card account
• Be added as an authorized user or joint account holder

What is the recommended balance to have in a credit card?

It is recommended to have 20 % – 30% of the credit limit.

Paying a collection account can help credit scores?

Paying off the past due debt will reduce the total amount of debt you owe. A paid collection is still a collection. Ask the collection agency or creditor to remove the account from your credit report. Some creditors will update the balance on the accounts leaving it on your credit report as paid collections. Paying the collection accounts might not make a significant change right away it.
If you are planning to make a payment on any of your account. Please contact our office for advice at 832-595-2526.

How does a settled account affect my credit score?

Keep in mind that settling your account for less than the full balance owed is not the same as paying the account in full.
Settling an account is considered negative because you are not paying the entire amount of the debt as you agreed under the original contract