There are many different factors that can cause a credit
score to decrease. Leaf Credit Repair has no control over the increase or
decrease of your credit score. The credit bureaus (Experian,
Equifax,TransUnion) score your credit based on 5 factors. We can only advise
you as to what you can do to increase your credit score. Look at the reasons
listed below and review your most recent credit report to determine what may
have caused a decrease or increase in your credit score.A few examples are included below.
Utilization has a 30% impact
on your FICO score, so it is extremely important to maintain balances that are
well below thirty percent of the limit on each card so that your credit scores
do not decline. If you carry high credit card balances, or if your balances
increase after starting the program, your scores may decline or may not
Example: John signs up for the credit restoration program with Leaf Credit
Solutions on June 15th and
upon reviewing his report we see that he has a 617 mid FICO score. John has a
Discover card with a $1500 limit and a $279 balance and a Citi card with a
$2500 limit and a $629 balance.
After 60 days in the
program, John now has a $1379 balance on the Discover with the $1500 limit and
a $2200 balance on the Citi card with the $2500 limit. After 2 months his
utilization ratio is at 90% and his scores drop by 47 points due to running up
his credit cards.
An old unpaid account is sent to collections
Any new derogatory accounts
reported to your credit after you enroll in our credit restoration program will
cause a decline in your credit score. Negative information that the credit bureaus
report to your credit after we have started working on your credit is not
predictable, but can be dealt with if it occurs.
Paying accounts late
Payment history makes up 35%
of your credit score and any late payments will have a significant negative
effect on your credit score. Maintain on time payments on all open accounts. Be
aware that late payments will cause your credit score to decline and paying
your creditors on time is solely your responsibility.
You applied for new credit
New credit account inquiries
have a 10% impact on your credit scores and excessive loan applications should
be avoided because it will cause your credit scores to decrease. While going
through the credit restoration process avoid applying for new credit unless advised
otherwise by your case manager
Credit card cancelled by a creditor
1. New negative item
2. New credit inquiry
3. Consumer or creditor closing an account
4. Balances high on accounts
5. Not having any active revolving credit
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