Reality
Credit repair services don’t really work. The only way to repair or maintain a healthy credit score is by paying back your credit card and loan EMIs on time. This also involves understanding how one’s credit score is calculated. A credit score has various components which determine one’s score and rating, they are as follow:
- Payment history – 35% of your credit score
- Credit utilization – 30%
- Length of credit history – 15%
- Amount of new credit (and inquiries) – 10%
- Credit mix – 10%
Therefore, 50 % of all components is dependent on time and hence, one needs to be patient in order to improve their credit score