How Credit Repair Specialist Calculates Credit Score?

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First of all, it should be clear that there is no “magical cure” to clear credit history. When a person has a credit, he immediately enters the credit bureau. This is not necessarily bad. The credit bureau is an institution where the financial situation of the people who have a credit is recorded.

The score that is awarded in the credit bureau ranges from 400 to 850 points. If the score you get is closer to 850 points then you have a good financial situation and you have a clean credit history.

Now, when the score is bad and we do not have a clean credit history, then how do we clean it? As long as you have a credit you will not leave the credit bureau, but what changes is the creditor’s credit rating on our solvency. In short, whether we cover the payment on time or not.

Two solutions

There are two ways to clear credit history. The first happens when you stop paying the debt, although not necessarily the history is very clean. The second happens when the debt is covered.

In the first scenario, each person has their information recorded in the database of the credit bureau. When someone stops paying, the credits registered can be eliminated in different periods, depending on the amount owed. According to the Credit Information Society Credit Bureau, in the amount of the debts should be used the Investment Units ( UDIS ); The value of each unit is calculated by the Bank.

If you owe less than $25, then it is removed after twelve months of not having paid. If you owe between $25 and $500, it is eliminated two years after you have stopped paying. Between $500 and $1000, the debt is eliminated after 4 years of having stopped paying. The calculation of each period begins when the institution to which the failure to pay is first reported.

When the credits are between $1000 and $400000, the elimination time is 6 years, as long as the credit is not in a judicial process and no fraud has been committed. It is very important to note that even if the credit bureau’s data is deleted, the debt remains valid (not canceled) for up to 10 years, which means that the creditor has the right to continue collecting the debt.

In the second scenario, when the debt is covered, although we remain in the credit bureau, the credit history changes to a good score in the next 35 to 45 days. With this, we mean that in the credit history it will be noticed that we comply with the payment of the debt and we are solvent. 

The best thing is that, when you have a credit, you comply with the payments in time to not have a bad note in the credit history. If for any reason, you already have a dirty credit history, then you need to clean it by paying the debt or by finding credit repair services near me. Having a clean credit history means that it is easier to get a credit of any kind.

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