Credit Successes

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!

Rodrelle had a 543 credit score and was looking to buy a home for the first time. Unfortunately, that score was not high enough for him to qualify for a home loan. His mortgage loan originator connected him to CredEvolv during the financing application process.

Over the next 1 1/2 months, Rodrelle worked with his credit coach through the CredEvolv platform. He took full advantage of our digital tools and the personal guidance of his credit coach. As a result, he increased his 543 credit score 65 points to 608!

His original 543 credit score was now in the range to qualify for a mortgage, but Rodrelle was inspired to do better. He made the decision to hold off on buying a home for a few more months until he could improve his credit score even more and qualify for a better rate.

Currently, Rodrelle remains in the program and is working toward that goal. We know he’s going to do great things!

One of the beautiful things about working with consumers like Rodrelle is seeing them push past their initial goals and set even higher standards for themselves. While he could potentially qualify for a loan now, Rodrelle felt it would be better to continue building his credit score to a level where he wouldn’t be at a high risk of falling back below a loan qualification threshold.

Wherever you set your sights, CredEvolv can help you get there. Connect with a nonprofit credit counselor today and achieve a credit score you can be proud of!

Results not typical. Customers average a 53-point credit score increase in 3 to 5 months.

When Thomas was connected to CredEvolv through his mortgage loan originator, he was what we call “credit invisible.” He suffered from old derogatory information on his credit report and was unable to generate a score with any of the credit bureaus.

That meant he essentially had to build his credit from scratch. 

Thomas began working with a partnered credit coach through the CredEvolv platform. He was able to improve his credit score by a whopping 407 points, from 400 to 807. This surpassed his original goal by 107 points! He was no longer credit invisible and he did it in only 5 1/2 months!

To go from the lowest credit band to the highest within half a year is a momentous achievement. We recognize this result isn’t representative of most people who work on their credit with a credit coach. It does show what’s possible with a little work, a little effort, and some time well spent.

Thomas can now enjoy the rewards of being able to qualify for the most favorable interest rates and loan terms when he needs financing. And he knows he can always reach back out to a credit coach, should he need our services in the future.

You too can reach out to us anytime for help with your credit. Connect with a nonprofit credit counselor today and become loan-ready in no time!