Jul 23 • Q&A Credit Repair
📋 Credit Issues Q&A
1️⃣ Q: What is a good credit score?
A: A good credit score typically starts at 670 and above. Scores between 740–799 are considered very good, and 800+ is excellent.
2️⃣ Q: Why did my credit score drop after paying off a loan?
A: Paying off a loan can lower your credit utilization and remove an active account, which may temporarily lower your score. Over time, your positive payment history still helps your score.
3️⃣ Q: How many credit cards should I have?
A: There’s no perfect number, but having 2–3 cards you can manage responsibly helps build credit. Keep utilization low and pay on time.
4️⃣ Q: What is a hard inquiry vs. a soft inquiry?
A: A hard inquiry happens when you apply for credit and it can lower your score slightly. A soft inquiry (like checking your own credit) doesn’t affect your score.
5️⃣ Q: Can I remove late payments from my credit report?
A: If they are inaccurate, you can dispute them. If accurate, you can write a goodwill letter to the lender requesting removal — but it’s not guaranteed.
6️⃣ Q: How long do negative items stay on my credit report?
A: Most negative marks stay for 7 years, bankruptcies up to 10 years. Positive accounts stay longer and help your score.
7️⃣ Q: What is credit utilization?
A: It’s the percentage of your available credit you’re using. Aim to keep it below 30%, and ideally under 10% for the best scores.
8️⃣ Q: Do medical bills hurt my credit?
A: Only if they go unpaid and are sent to collections. Recent rules also give you a grace period before they appear on your report.
9️⃣ Q: Should I close unused credit cards?
A: Not always. Closing cards can lower your available credit and hurt your score. If there’s no annual fee and you can keep it open responsibly, it’s better to leave it.
🔟 Q: Can I build credit without a credit card?
A: Yes! You can build credit with secured loans, auto loans, rent reporting services, or secured credit cards.
1️⃣1️⃣ Q: What should I do if I find an error on my credit report?
A: Dispute the error with the credit bureau(s) in writing or online. They have 30–45 days to investigate and correct it.
1️⃣2️⃣ Q: Can paying a collection improve my score?
A: Yes — especially newer scoring models ignore paid collections. It also stops further damage and shows lenders responsibility.
1️⃣3️⃣ Q: How often should I check my credit?
A: At least once a year — but monitoring it monthly helps you catch errors or fraud early. You’re entitled to one free report per bureau each year.
1️⃣4️⃣ Q: Will applying for multiple credit cards hurt my score?
A: Yes — too many hard inquiries in a short time can lower your score. Space out applications at least 6 months apart.
1️⃣5️⃣ Q: Does having no debt mean I’ll have a high credit score?
A: Not necessarily. You need active, positive credit accounts to build your score — just having no debt doesn’t guarantee good credit.
Keep track of:
✅ Payment history (35% of score)
✅ Credit utilization (30%)
✅ Credit age (15%)
✅ Credit mix (10%)
✅ Inquiries (10%)
7
2 comments
📋 Credit Issues Q&A
powered by
skool.com/credit-freedom-society-2939
Welcome to Credit Freedom Society™
This is your roadmap to fix, build, and master your personal credit along with building Digital Wealth
Suggested communities
Powered by