Credit and Debt FAQ

Frequently Asked Questions


I paid off a collection account but it is still appearing on my credit report. Why?

Paying a collection debt doesn’t mean it automatically be removed from your credit report. What it does mean is that now it will be reported as a “Paid Collection.” For more detailed information about debt collection, debt negotiation, and how to deal with those nasty collection people who prey on unwitting consumers, visit the Credit Education Library or click here to schedule a free consultation with one of our Certified Credit Consultants.

My credit cards are maxed to their limits. Is this hurting my credit score?

Yes! Optimally, you should try to keep your balances 35% below the limit. Try never to let the credit card balance exceed 50% of the credit limit.

Having credit cards can improve your credit scores—if you do not abuse them and if you have no more than one to three. Of course, making your payments on time will also help increase your scores.

What is a credit score and what can I do to improve it?

A credit score, sometimes called a “Fair Isaac” or FICO score is calculated based on the number of credit accounts you have, your payment history, and your personal information. It is made from a calculation so complex that there is no exact formula, but the scoring ranges from 350 to 900.

You can improve your score by paying your bills on time; not maxing out your credit cards; limiting inquiries on your credit reports (by not letting prospective creditors pull your credit reports unless it is absolutely necessary); deleting negative credit items; deleting inquiries; and doing your best to settle outstanding debts, collections, and judgments.

Where can I obtain my credit reports?

You may order your credit reports from us for only $39. allows you to request a free credit report, once every 12 months from each of the nationwide consumer credit reporting companies: Equifax, Experian and TransUnion.

Or you may obtain them directly from the three credit reporting agencies:

TRANS UNION, Customer Disclosure Center, P.O. Box 390, Springfield, PA 19064-0390 1-800-888-4213
EQUIFAX, P.O. Box 740241, Atlanta, GA 30374-0241 1-800-685-1111
EXPERIAN, P.O. Box 2104, Allen, TX 75013-2104 1-888-397-3742

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