FINANCIAL TIPS

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What’s good credit? What’s bad credit?

Excellent – Grade A
(726-830) – If your credit score falls into this category, you are considered to have excellent credit. You will be approved and have been approved for additional credit in most cases. You will have no problem in obtaining any credit request as long as the income supports your request. Use this powerful score to your advantage and only accept and seek best rate and credit options.

Good – Grade B
(700-725) – You have good credit, a small baby step away from excellent, you will still have most favorable credit options at your disposal in many cases. You more than likely have made consistent payments on time, you may have accumulated debt in the form of primarily credit cards. By simply eliminating more of your overall debt, your score will rise to excellent status in a very short time.

Average – Grade C
(626-699) – Depending on where you fall on the scale 699, or 626, or somewhere in the middle, you may have had some minor financial or debt resolution problems. You may have stumbled once or twice on a personal loan, unsecured credit card, or even a small cell phone bill that you neglected. In this case you will still have credit options, but not always the most favorable. In this case you have to be a little more creative in researching and obtaining the best credit options. With a few minor adjustments, you can move into the good credit status in no time, 6-18 months.

Poor – Grade D
(625 – 330) – OK, you may have had some credit problems, bankruptcy, multiple charge-offs, or collections. The good news, is that it only can get better, but only when you decide to take action. The 7-10 year bankruptcy clock will start when you file and are granted a discharge. The charge-off and collection clock will start when you take action to settle the account. The clock is the elimination of these bad loans appearing on your credit. You still may have loan options here, but you will need to be very creative, and strategic about your credit. If you have income, the key is to get a plan and start by taking action, nothing will begin to repair or restore until you begin by taking a step, one step at a time. Bad credit is not permanent, only temporary, unless you try and ignore it.

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