Tips & Tools


How does credit repair work?

Many people do not know that they can challenge an incorrect or questionable item on their credit report. Challenging these items can potentially have them repaired or removed. When you participate in credit repair at BNB, we will review your credit reports to help you identify those inaccuracies and come up with a plan to have them repaired. If an item cannot be verified within a reasonable time (usually 30 days) it has to be removed or repaired. The Fair Credit Reporting Act gives you a legal right to dispute any item on your credit report. Schedule your FREE Credit Assessment NOW!

What is a credit report?

A credit report is a report containing information about your current credit situation and activity, such as a loan payment history or statuses of your credit accounts. These reports are maintained by consumer reporting agencies, more commonly known as credit bureaus. The three largest credit bureaus are Transunion, Equifax, and Experian. Each bureau collects and stores financial data about you that is submitted to them by creditors, such as lenders, credit card companies and other financial companies.

Lenders use these reports to help them decide if they will loan you money and if so..... what interest rates will they offer you! Your credit report contains information about your debts and payment history. It indicates if you have defaulted on any debts, have any outstanding judgments or child support, and whether or not you have any bankruptcies. Other businesses might use your credit reports to determine whether they can offer you insurance, rent you a house or an apartment, provide you with utilities or require a deposit for a cell phone.

What is a credit score?

A credit score is your credit history expressed as a number. Comparable to receiving a grade for how responsibly you’ve managed your loans, credit cards and other financial obligations over the years. Credit scores range from 300-850 and are generated by a mathematical formula that is meant to predict creditworthiness. The higher your credit score, the more likely you will be approved to get a loan. The lower your credit score, the less likely you are to get approved for a loan and if approved, your interest rate will be much higher than someone with good credit. So having good credit will help you save thousands of dollars in interest on your mortgage, auto loans or credit cards.

How is a Credit Score calculated?

  • 35% Payment History
  • 30% Amounts Owed
  • 15% Length of Credit History
  • 10% New Credit
  • 10% Type of Credit Used

Credit scoring models are complex and often vary among creditors, not to mention the different types of credit. If one factor changes, your score may change. Improvement generally depends on how that factor relates to the factors considered by the model.

Payment History
The first thing any lender wants to know is whether you've paid past credit accounts on time. This is one of the most important factors in a credit score. If you have paid bills late, have collections, or declared bankruptcy, these events will not reflect well in your credit score.

Amounts Owed
Having credit accounts and owing money on them does not necessarily mean anything negative or that you are a high-risk borrower. However, if you are utilizing a lot of your available credit, lenders can interpret this that you are over-extended and at a higher risk of defaulting.

Length of Credit History
Typically, a longer credit history will increase your credit score. However, even people who haven't been using credit long may have high credit scores, depending on how the rest of their credit report looks.

The factors taken into account are:
  • How long your credit accounts have been established; oldest account, newest account and an average age of all your accounts
  • How long specific credit accounts have been established
  • How long it has been since you used certain accounts

New Credit
Research shows that opening several credit accounts in a short period of time represents a greater risk-especially for people who don't have a long credit history. If you can avoid it, try not to open too many accounts too rapidly.

Credit Mix
FICO Scores will consider your mix of credit cards, retail accounts, installment loans, finance company accounts and mortgage loans. Don't worry, it's not necessary to have one of each.

Credit Scores Defined

   800 or Higher – Excellent

With a credit score in the range of 800 to 850 these people are considered to be consistently responsible when it comes to managing their credit and are prime candidates to qualify for the lowest interest rates. People with this score have a long history of no late payments, as well as low balances on credit cards. Achieving this excellent credit rating not only requires financial knowledge and discipline, but also a good credit history. With excellent credit scores consumers may receive lower interest rates on mortgages, loans and credit lines because they are deemed to be low risk for defaulting on their credit agreements.

   740 – 799 – Very Good

This credit score range shows lenders that a consumer is generally financially responsible when it comes to money and credit management. Most of their payments, including loans, credit cards, utilities and rental payments are made on time. Having a score in this range consumers will enjoy good rates and will be approved for nearly any type of credit loan or personal loan, whether unsecured or secured.

   670 – 739 – Good

This range is the average credit score. While consumers may still get competitive interest rates, they are unlikely to command the ideal rates of those in the higher categories and may still have trouble qualifying for certain types of credit. If you are thinking about a long term loan such as a mortgage, it is recommended to try to increase your credit score higher than 720 so that you can secure a low interest rate to save a noticeable amount long term.

   580 – 620 – Fair

This “fair” or “average” category may have some dings on their credit history but no major delinquencies. Your credit history and what type of credit you are applying for will reflect in the rates you are quoted. Nor does it mean you won’t be approved but there could be certain restrictions that apply.

   300 – 579 – Poor

An individual with a score between 300 and 579 has a significantly damaged credit history. This can be the result of a bankruptcy or multiple defaults on different credit products. Consumers in this range, unfortunately have very little chance of getting new credit.

This is the range where we recommend talking to our team of experts at BNB. Our team of professionals will not only educate you about credit but guide you to better credit. Taking positive action NOW will help avoid a lifetime of bad credit. Any loan you could possibly secure now will carry very high-interest rates and very strict terms, which will cost you thousands of dollars for the life of the loan.
Credit Score Chart


What can I do to improve my score?

  • Order new copies of your credit report from all 3 bureaus. When you sign up for credit repair through BNB, we will help you obtain your credit reports and our team of professionals will conduct a thorough credit analysis to identify questionable items.
  • Repair or correct all questionable items on your Credit Reports. BNB will go through your credit reports very carefully looking for late payments, charge-offs, collections or other negative items that are inaccurate or unverifiable.
  • If you have questionable items on your credit report, negotiate with the creditor or bureaus to repair it. Many times if there is something simple like a one-time late payment and you are a long time customer, a creditor will often wipe it away to keep you as a customer. But for the more serious items, BNB will prepare dispute letters that you will send to the creditors and bureaus identifying the questionable items for repair.
  • Try to pay any credit balances to below 30% of the available credit limit. This step alone can make a huge impact on your credit score. Every lender wants to make sure you are not overextended, but that you can responsibly utilize your available credit.
  • Keep your old credit card accounts open. Established accounts that are older show your history. These accounts tell about your stability and paying habits.
  • Do not apply for any new credit!! Every time you apply for new credit, the lender checks your credit report. Not only will opening new credit accounts not help your credit score, but an account less than one-year-old may hurt your credit score.

BNB is here to guide you to better credit. It takes time to repair the questionable items on your credit report and may take sending a series of dispute letters to the credit bureaus. This process will be worth it because BNB will save you an immense amount of money with lower interest rates. BNB will help educate you in having and keeping good credit. Schedule your FREE Credit Consultation NOW!