Shameka J. Bishop, owner of RCA Credit Repair (Facebook Photo)
by Megan Kirk, For New Pittsburgh Courier
(Michigan Chronicle)—Establishing good credit can make or break adult decisions. Home buying, car shopping, credit card approval and other loans. For many, credit is a foreign concept and maintaining financial stability through credit is hard to reach. The first step in credit management is knowing which tools to use to boost credit scores and strengthen buying power.
Equifax, Experian and TransUnion comprise the three major credit bureaus. Each operating under their own algorithms, these big three help to create buying power for consumers. Credit scores help businesses measure risk in extending a ling of credit. High scores can help consumers purchase items with low APR, annual percentage rate, and low scores can be the reason a credit application is denied.
“There’s two different rules of major scoring models; vantage, that’s your Credit Karma scores. If you’re looking to get a mortgage or go to the Lexus dealership you want to be more attuned to your FICO score. Your FICO score give you your financing power, your home buying power, says Shameka J. Bishop, owner of RCA Credit Repair.
Known as the Bishop of Credit, the credit repair guru helps establish, restore and grow consumer credit. With more than five years of experience, this businesswoman has learned through experience. After filing for bankruptcy twice in life, the Bishop of Credit was able to turn her personal credit around and wants to help other do the same.
Despite belief, a high credit score does not ensure approval. Having multiple lines of credit helps bureaus determine payment history and, according to one credit expert, helps to build trust.
“The credit bureaus want you to have a mortgage, they want you to have a home loan. They want you to have personal loans, credit cards and student loans. They want you to have every tint because when you have those particular things on your credit, it shows trust. Even if it’s credit debt; it’s some type of trust,” says Bishop.
In Michigan, guidelines for credit can allow a negative charge to linger on your credit report card for years, ultimately damaging chances for additional lines of credit, the longer it stays. Moreover, a negative charge can affect your overall score for the long haul.
“In the state of Michigan, a negative can stay on your credit for up to seven years after the last payment. Bankruptcies can stay on for up to 10 years,” says Precious Jordan, CEO of Wonder Woman Credit Repair.
Serving more than 3,000 clients in five years of business, Precious Jordan founded Wonder Woman Credit repair, like many others, from personal experience with credit. After learning and restoring her own credit, she slowly began working for others. According to this expert, there are no tricks to credit, just consistency and smart decision-making skills.
“There is no trick to it besides paying monthly bills on time, eliminating hard inquiries and being responsible with your credit,” says Jordan.
Applying for additional lines of credit is what is considered a hard inquiry. Each time a creditor has to pull credit for approving or denying, credit scores take a hit. Soft inquiries include self-pulls to check credit debt. While these inquiries cannot by dropped to improve credit scores, other line items, such as charge offs, longtime debts and other payments can be eliminated to help boost scores.
“The hardest things to eliminate from a credit report are car notes. They are tough, but they can be removed if you don’t owe it,” says Jordan.
Credit cards pose a huge risk for both companies and consumers. High interest rates can cause a credit balance to skyrocket. Missed payments will also guarantee a swift drop in scoring.
“I’ve seen a person with perfect credit miss one payment and [it] drops their score 100 points. It’s that serious. People don’t know how to ay their credit cards. Paying your credit cards determines an immediate credit increase or a credit decrease,” says Bishop.
Paying bills on time and paying off outstanding balances can help boost credit scores. Staying consistent and watchful over credit will ensure a boost.
“Credit is like a baby; you have to love it, hold it, rock it and kiss it for it to grow,” says Bishop.
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