Credit Successes

When you have a 400 credit score, there’s almost nowhere to go but up. The only question is, how high can you go?

In Francisco R.’s case, the certified credit counselor he connected with on our platform helped him establish a new tradeline. His counselor also disputed some older late payments and a collection account. His 400 credit score shot up to 695 in only 4 months! That increase put him only 5 points away from his goal of a 700 credit score!

How quickly can you see a significant improvement in your credit score?

Francisco’s result is not typical; the average CredEvolv customer sees a 53-point increase in 3 to 5 months. But a 295-point increase from a 400 credit score in such a short period of time shows what’s possible, even when you’re starting with essentially no credit score at all.

If you’re in a similar boat and don’t know where to begin, check out our blog about how to build and keep a strong credit profile. Better yet, consider connecting with a certified, nonprofit credit counselor on the CredEvolv platform.

Even if you’re starting from scratch, letting CredEvolv help you lift your 400 credit score the right way can really set you up for success. That goes for the short term and over the long haul. It’s a journey that can take many twists and turns. But by entering into it with knowledge and help, you’re investing in your future financial health.

Remember to start small, be consistent, and follow the advice of an expert. Your certified credit coach is trained to help you manage your finances, create a budget, and develop a personalized plan to put you on the right track and keep you there. Use this expertise to your benefit before you try to improve your 400 credit score yourself.

Who knows? Maybe your 400 credit score will see the same meteoric rise as Francisco’s did!

Read more credit success stories here.

We pride ourselves on the remarkable improvements people can see in their credit scores after just a few months on the CredEvolv platform. But it’s important to remember that building or rebuilding your 523 credit score is a marathon, not a sprint. The end goal is to gain habits and knowledge that will enhance your credit endeavors for a lifetime.

Still, big results in a short period of time are a major motivator to keep going. CredEvolv client Ariel T. recently found this out firsthand!

Ariel had a 523 credit score due to late payments and new account inquiries. We connected him with a nonprofit credit counselor who removed those negative items from Ariel’s credit report. Five months later, with a credit score of 580, the 600s are within reach as Ariel continues working toward his goal of a 680 credit score.

What are credit inquiries?

When you apply for new credit, the lender will make a credit inquiry to check your credit report. There are two types of inquiries:

• Hard inquiries. These occur when a lender checks your credit report as part of the approval process for a loan or credit card. Hard inquiries can slightly lower your credit score and remain on your report for two years.
• Soft inquiries. These occur when you check your own credit, when a lender checks your credit for pre-approval offers, or when an employer conducts a background check. Soft inquiries do not affect your credit score.

What impact do credit inquiries have on a 523 credit score?

Lenders view multiple hard inquiries within a short period of time as a potential sign of irresponsibility, financial distress, or other indications of high risk. However, several inquiries related to mortgage or auto loan applications within a brief timeframe are typically treated as a single inquiry for scoring purposes, as it’s assumed you’re rate-shopping or otherwise being smart about your borrowing.

In Ariel’s case, he’s learned to be more discerning about how often he applies for credit going forward. He also understands the importance of making his loan payments on time, every time. Not surprisingly, his original 523 credit score is on the way up!

Read more credit success stories here.

The beginning of another football season reminds us how important it is for coaches and players to be on the same page as they move toward their shared goal. They cannot truly achieve success unless that happens. The same principle applies to improving your 554 credit score, as John S.’s success story shows.

John’s HUD-certified, nonprofit credit counselor went about removing late payments and a collection account from his report. Meanwhile, he continued to pay down his credit card balances every month. The result: John’s 554 credit score increased to 626 in five months! This put his short-term goal of a 650 score in clear view.

What are collections on a credit report?

A collections account occurs if you fall behind on payments and the lender or creditor decides to transfer your account to a collection agency or sell it to a debt buyer. This can occur anytime from the date you begin missing payments or not paying the full minimum payment to a few months after you become delinquent. Lenders and creditors will usually send you letters or call you regarding the debt before it is sent to a collection agency. 

“Should I try to fix my 554 credit score myself?”

The collaboration between our clients and the counselors we connect them with on our platform is a beautiful thing. That’s why we never recommend DIYing your own credit fixes. There are many ways you can mess up your attempts to clear your credit record.

Improving your 554 credit score isn’t impossible. But it’s one of those things that is best left to the experts. Specifically, the credit counselors on our platform. That’s because:

• They know what they’re doing.
• They have your best interest at heart.
• They’re not here to keep you in a program for longer than you need to be.
• They’re not out to make a profit off your hard times.

They’re here to coach you to success and show you the responsible credit practices that can improve your 554 credit score and your life – both while you’re enrolled in the program, and more importantly, for years to come after you’ve achieved the credit score you want and deserve.

Read more credit success stories here.

As we pointed out in a previous success story, three of the most detrimental elements that can cause a 526 credit score are late payments, collections, and charge offs. Richard H. had all of them on his credit report when he hopped on the CredEvolv platform.

The certified, nonprofit credit counselor he connected with through CredEvolv was able to remove late payments, a collection, and a charge-off from Richard’s credit report. This raised his 526 credit score to 595 in just 4 months!

You probably know or can figure out what late payments are. Here’s a refresher about the other two and how they can contribute to a 526 credit score:

What are collections and charge-offs on a credit report?

• A collections account happens if you fall behind on your loan payments. The lender or creditor can choose to transfer your account to a collection agency. They can also decide to sell it to a debt buyer. This can occur anytime from the date you begin missing payments or not paying the full minimum payment to a few months after you become delinquent. Lenders and creditors will usually send you letters or call you regarding the debt before they send it to a collection agency. 
• A charge-off happens when the creditor doesn’t think you will repay the debt. If a collections agency has purchased the debt, it may attempt to collect what you owe. The amount can include the outstanding balance and any interest that has accrued. This can happen even if the creditor has written off the debt and has stopped attempting to collect it themselves.

Next on the list: addressing another collection and pushing Richard’s former 526 credit score into the 600s!

“Should I try to improve my 526 credit score myself?”

The partnership between our clients and the credit counselors we connect them with is powerful. That’s why we recommend avoiding the DIY approach to credit repair. Numerous pitfalls can derail your efforts to clean up your own credit history.

Fixing your 526 credit score isn’t an impossible task, but it’s one that benefits from professional guidance. Specifically, the reputable, expert credit counselors on our platform. Here’s why:

• They have the knowledge and experience to navigate the complexities of credit improvement.
• Their goal is to help you, not keep you stuck in a program longer than necessary.
• They’re dedicated to your success, not making a profit off your challenges.

CredEvolv’s counselor partners are here to equip you with the skills and strategies needed to build strong financial habits. This knowledge will help you during the program and, most importantly, long after you’ve reached the credit score you deserve.

Read more credit success stories here!

It’s amazing what fewer collections and lower credit card balances can do to someone’s 532 credit score – and how quickly they can do it!

After connecting with a nonprofit credit counselor on our platform, John F. saw a collection account come off his credit report. Combined with his dedication to paying down his credit cards, this helped John’s 532 credit score rise to 636 in just two months!

What are collections on a credit report?

A collections account happens if you fall behind on your payments. The lender or creditor can decide to transfer your account to a collection agency. They can also choose to sell it to a debt buyer.

This can occur anytime from the date you begin missing payments or not paying the full minimum payment to a few months after you become delinquent. Lenders and creditors will usually send you letters or call you regarding the debt before it is sent to a collection agency. 

How long does it take to raise your 532 credit score 100 points?

John’s result is not typical; the average CredEvolv customer sees a 53-point increase in 3 to 5 months. But a 104-point credit score increase in such a short period of time shows what’s possible when a consumer and a counselor craft a plan together and execute it.

In this case, John followed the counselor’s advice on how to tackle his credit card debt. Meanwhile, the counselor worked to delete the collections account that was also weighing down John’s score.

As the saying goes, teamwork makes the dream work! And by “dream,” we mean achieving John’s ultimate goal of a 700 credit score!

Read more credit success stories here.

When it comes to turning around your 500 credit score, there are 3 steps to achieving positive changes quickly and sustainably:

1. Fix your current credit report.
2. Learn how to be financially responsible.
3. Do steps 1 & 2 the right way.

Here’s an example of what can happen when you do them all.

Roman B. came to us with a 500 credit score and very little knowledge about how to budget. We connected Roman with a nonprofit credit counselor, who was able to remove a collection and offer advice about the best approach to paying down credit cards. Roman’s 500 credit score jumped to 620 in just 5 months!

While this result is not typical – the average CredEvolv customer sees a 53-point increase in 3 to 5 months – Roman’s success story is rooted in step 3.

Instead of taking the DIY approach, Roman found CredEvolv. He connected with a certified, compliant, nonprofit credit counselor who provided help – not only with deleting the collection account but also with learning how to avoid credit trouble.

That’s how Roman has been able to achieve a triple-digit increase in his original 500 credit score and keep the momentum going as he continues toward the goal of an even higher score.

Read more credit success stories here.

Collections, charge-offs, and late payments are a three-headed monster that can really ruin someone’s credit. That’s what Crystal S. was dealing with when she came to CredEvolv for help with her 510 credit score.

We connected her with a certified, nonprofit credit counselor. In seven months, the counselor was able to remove a collection account, a charge off, and seven late payments from her credit report. Crystal’s 510 credit score rocketed to 608!

Late payments are self-explanatory. As for how the other two can contribute to a 510 credit score:

What are collections and charge-offs on a credit report?

• A collections account occurs if you fall behind on your payments. The lender or creditor can choose to transfer your account to a collection agency. They also have the option of selling it to a debt buyer. This can occur anytime from the date you begin missing payments or not paying the full minimum payment to a few months after you become delinquent. Lenders and creditors will usually send you letters or call you regarding the debt before they involve a collection agency. 
• A charge-off is an accounting term that indicates the creditor doesn’t think you’ll pay back the debt. Even though the creditor has written the debt off and has stopped attempting to collect the debt themselves, a collections agency may have purchased the debt. If so, that agency may attempt to collect what you owe. This can include the outstanding balance and any interest that has accrued.

Now that Crystal’s original 510 credit score is on the rise, she’s in a better position to achieve her financial goals. She also has more knowledge about credit so she can hopefully avoid the pitfalls of borrowing in the future!

Read more credit success stories here.

Collections can do some serious damage to your credit and cause a 493 credit score. Removing them can do wonders. Just ask Patricia H.!

Patricia found herself in this situation and came to us with several collections on her credit report. Her certified, nonprofit credit counselor was able to have a third of them removed. Her 493 credit score shot up to 584!

Now she’s working on improving her on-time payment history, which is the key to avoiding collections. She’s also learning valuable lessons about maintaining good credit. Those will serve her well in the future and put collections and late payments in her distant past.

What are collections and how can they cause a 493 credit score?

To clarify, collections on a credit report refer to accounts that go to a collections agency due to non-payment. When you fail to pay a debt, such as a credit card bill, medical bill, or loan, the original creditor will make several attempts to collect. When those don’t work, the account may end up with a collections agency that will attempt to recover the owed amount.

This action is then reported to the credit bureaus and appears on your credit report as a collections account. Collections can remain on your credit report for up to seven years from the date of the original delinquency, serving as a red flag to potential lenders.

Read more credit success stories like Patricia’s here.

All sorts of good things start to happen to people when they send their 594 credit score in an upward direction. Some of them are expected, while others can be pleasant surprises!

Eduardo M. found this out firsthand after we connected him with a certified, nonprofit credit counselor.

First, late payments and a collection account were removed from his credit report. Then, with the resulting increase in his scores, his credit card limits increased. His scores rose even further as his credit utilization rate dropped!

In 9 months’ time, Eduardo’s 594 credit score jumped to 699 – a difference of 105 points.

Why are high credit card balances so bad?

Having a high utilization ratio can hurt your credit scores – even when you make the minimum required payments on time every month. It also makes it increasingly difficult to qualify for more credit. In addition to the impact on your credit score, high credit card balances can increase your debt-to-income ratio (DTI).

Lenders look at your DTI ratio to gauge how much of your income is already tied up in debt payments. A lower DTI signals that you have room in your budget to take on more debt without overextending yourself. On the other hand, a higher DTI might raise red flags, suggesting you could struggle to manage additional monthly payments.

Can high credit card limits have a positive effect on your credit report?

Higher credit card limits might seem like a double-edged sword for someone who has dug themselves out from under a negative credit history. But with the lessons he’s learned from his credit counselor, Eduardo has the knowledge and the tools to use his new borrowing power responsibly. Plus, his original 594 credit score went up as a result. That’s what we call a win-win!

Read more credit success stories here.

Life happens. Sometimes, that can mean late credit payments and accounts sent to collection. At CredEvolv, we don’t judge. We step in to help so people don’t have these blemishes or a mid 400 credit score forever.

Stacey came to us with a credit score in the mid-400s. We connected her with a HUD-certified, nonprofit credit counselor, who was able to remove 12 late payments and four collection accounts from her credit report. This catapulted her credit score into the mid-500s and created the potential for even more upward movement!

Now, the sky’s the limit for Stacey, both with her credit score and the financial goals she can achieve with it!

What are collections on a credit report?

A collections account happens if you fall behind on payments. The lender or creditor can decide to transfer your account to a collection agency. The can also opt to sell it to a debt buyer.

This can occur anytime from the date you begin missing payments or not paying the full minimum payment to a few months after you become delinquent. Lenders and creditors will usually send you letters or call you regarding the debt before sending it to a collection agency. 

“How quickly can I improve a mid 400 credit score on the CredEvolv platform?”

Now is the best time to start the process of improving your credit. Forget what Google or the for-profit credit repair guys tell you. It takes a little time for your credit score to go up, and it doesn’t always happen overnight. Typically, our clients reach their credit goals and loan readiness in an average of 3 to 5 months. Stacey did exactly that.

Depending on your individual situation, you may need services like dispute resolution, budget analysis, debt-to-income ratio analysis, payment negotiations, credit card or loan payoffs (or not), and more. These are things that only a HUD-certified nonprofit credit counselor on our platform will know how to deal with ethically and effectively.

Once all of this happens for you, who knows? You might see results similar to Stacey’s. So give CredEvolv a shot. You might be amazed by what happens next!

Read more credit success stories here.

Emili’s credit was keeping her from achieving her financial goals. Similarly to many people who come through our platform, she was what we call credit invisible. Due to her insufficient credit history, she couldn’t generate credit scores with the bureaus, initially.

Through the Success Plan created for her by her nonprofit credit counselor, Emili received the tools and education she needed to achieve positive results. While Emili had tasks to complete on her own, her credit counselor also helped her challenge the negative information on her credit report while educating her on how to use credit responsibly.

The days of Emili having an insufficient credit history are over! She now knows her goals are within reach and she has the knowledge to help her achieve them.

“How quickly can I fix an insufficient credit history on the CredEvolv platform?”

Now is the best time to start the process of improving your credit. Try to ignore what Google or the for-profit credit repair guys tell you. It takes a little time for your credit score to go up, and it doesn’t happen instantly. Typically, our clients reach their credit goals and loan readiness in an average of 3 to 5 months. This was Emili’s timeframe.

Depending on your individual situation, you may need services like dispute resolution, budget analysis, debt-to-income ratio analysis, payment negotiations, credit card or loan payoffs (or not), and more. These are things that only a HUD-certified nonprofit credit counselor on our platform will know how to handle ethically and effectively.

Once this has all happened, you might see results similar to Emili’s. So why not give CredEvolv a try? You might be pleasantly surprised by the outcome!

Read more credit success stories here.

Credit challenges of all kinds can be overcome when people are shown the steps they need to take to remedy their individual credit issues. That’s how someone can reach a 620 credit score after starting with a 400.

CredEvolv customer Janet began working with a HUD-approved, nonprofit credit counselor on our platform. She achieved tremendous success in a relatively short period of time.

When Janet came to CredEvolv, she had insufficient credit history and old collection accounts pulling her score down. In fact, her score was almost as low as it could go.

Over the next 7 months, she worked hand-in-hand with her nonprofit credit counselor, who challenged her old collection accounts and showed her the correct and responsible way to rebuild and establish credit.

Janet took advantage of her CredEvolv digital portal as well. She worked on tasks and provided documentation needed by her counselor along the way.

Janet was able to reach her credit goal! She improved her score 220 points, from 400 to a 620 credit score, in just 7 months. And she now has the knowledge that will help her to continue improving and maintaining her credit for years to come.

Read more credit success stories, connect a client to CredEvolv, or enroll yourself today!