The economic landscape of the United States is experiencing a significant shift, marked by a new event: the average FICO credit score has dropped for the first time in a decade.
In a recently released report on credit score data from October 2023, major credit reporting company, FICO, says that the national average credit score has decreased for the first time in a decade from 718 to 717.
Why did credit scores drop?
The decrease in average credit scores may be attributed to several key factors:
Increased Missed Payments: There has been an increase in missed borrower payments, showing serious financial strain among consumers. The FICO report shows that, as of October 2023, more than 18% of the population was late on payments.
Rising Consumer Debt Levels: Consumer debt, particularly credit card debt, has risen to over 1 trillion. This indicates that more consumers may be leaning on credit cards to cover everyday expenses.
Slowing New Credit Activity: New credit activity – consumers applying for new lines of credit – has slowed down.
What this means for you
It’s hard to say what this will mean moving forward, but at this moment it’s too soon to say – or worry too much. In a statement given to Bloomberg, Ethan Dornhelm, VP at FICO, said that “This isn’t a blinking red light, but it certainly is a yellow light.”
Whatever happens in the future, it’s important to take steps to try to protect your credit. Here are some strategies:
Reduce Credit Utilization Rates: Your credit utilization ratio is the amount of available credit you have compared to the amount of credit you’ve used. Generally, the best practice is to keep your credit utilization ratio below 30%, if you can.
Consolidate Debt: If you’re worried about tracking different payments, consider consolidating your debt into one payment to avoid the risk of missing a payment. A missed payment is a negative mark on your credit, and can stay on your credit reports for 7 years.
Protect Your Credit History: Length of credit history is a significant factor in how your credit score is calculated. Closing a credit card that you’ve had for a long time, for example, might actually hurt your credit score. If you can, try to keep lines of credit – especially revolving credit accounts, like credit cards – open.
If You’re Rejected, Pause Before Applying Again: If you’ve been rejected for a line of credit in the past, like an auto loan or a credit card, pause before immediately applying again. Multiple “hard inquiries” – when a lender pulls your credit to evaluate your creditworthiness – in too short a time could potentially harm your credit.
Good credit is always important
If you’re worried about your credit, the best thing you can do is consistently check and monitor your credit – not just your score. Be on the look out for any changes to your credit reports and score, whether expected or unexpected, and make sure that everything in your credit profile is accurate. You can get started with a free credit assessment at Lexington Law for a snapshot of what’s in your credit profile.
Reviewed By
Nature Lewis
Associate Attorney
Before joining Lexington Law as an Associate Attorney, Nature Lewis managed a successful practice representing tenants in Maricopa County.
Through her representation of tenants, Nature gained experience in Federal law, Family law, Probate, Consumer protection and Civil law. She received numerous accolades for her dedication to Tenant Protection in Arizona, including, John P. Frank Advocate for Justice Award in 2016, Top 50 Pro Bono Attorney of 2015, New Tenant Attorney of the Year in 2015 and Maricopa County Attorney of the Month in March 2015. Nature continued her dedication to pro bono work while volunteering at Community Legal Services’ Volunteer Lawyer’s Program and assisting victims of Domestic Violence at the local shelter. Nature is passionate about providing free knowledge to the underserved community and continues to hold free seminars about tenant rights and plans to incorporate consumer rights in her free seminars. Nature is a wife and mother of 5 children. She and her husband have been married for 24 years and enjoy traveling internationally, watching movies and promoting their indie published comic books!
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
Credit card companies report payments at the end of their monthly billing cycle, also known as the statement closing date.
Credit cards are great for making large purchases and racking up points or miles and useful for building and improving your credit. If you’re a credit card holder constantly tracking your credit score to see improvement, it can be helpful to know when companies report to credit bureaus.
Unfortunately, issuers don’t report to credit reporting agencies on a specific day of the month. However, we can investigate a few factors to provide a prediction of when they will report as well as when you will see your payments reflected on your credit report.
Table of contents:
When do credit card companies report to credit bureaus?
How does credit card utilization affect your credit score?
How to decrease your credit utilization risk
How often do credit reports and scores update?
When do credit card companies report to credit bureaus?
Unfortunately, there isn’t a set date for when credit card companies report to the three credit bureaus: TransUnion®, Experian® and Equifax®. However, you can estimate the time frame by considering a few factors. Credit card companies typically report payments at the end of the monthly billing cycle. This is also known as your statement closing date. You can find these dates on your monthly statement.
However, don’t expect your credit report to update on the same day. It usually takes a bit for credit reporting agencies to update the information on your credit report. Updates on your credit report will also depend on:
The number of lines of credit
Due dates for every line of credit
If the credit issuer reports to all three credit bureaus or just one or two
The frequency and speed with which the credit bureau updates reports
If you’ve just paid your statement balance or previously unpaid balances, you likely want to see that reflected on your credit report as soon as possible. Since we don’t have a set-in-stone date for when you’ll see updates on your credit report, we recommend waiting at least a month or so to see any changes. If several months pass and you don’t see any updates to your report, we recommend contacting your credit card company to confirm your payments were correctly processed.
How does credit card utilization affect your credit score?
Credit utilization is the ratio of your current outstanding credit debt to how much total available credit you have. Available credit is the maximum amount of money you can charge to your credit card. A low credit utilization is a good sign that you, the borrower, are using a small amount of your credit limit.
A large outstanding credit balance—or higher credit utilization—can negatively affect your credit. This is especially true if the credit utilization percentage is higher than 30 percent. The lower your credit utilization, the better your credit may be.
How to decrease your credit utilization
Your credit score is affected by five factors: credit utilization, credit mix, new credit, payment history and length of credit history. However, credit utilization makes up 30 percent of your score. If you’re worried about how your credit utilization impacts your credit score, there are ways to decrease your risk and potentially improve your credit.
1. Complete multiple payments
Completing smaller payments every month can help lower your credit balance. You can also set up automatic payments so your credit balance is as low as possible when your credit card company reports to the credit bureaus.
2. Ask for a higher credit limit
Increasing your credit limit can lower your credit utilization ratio, as you’ll have more credit available. This can improve your credit score as it reduces the percentage of credit used every month. However, a higher credit limit may encourage you to spend more, which could go against your goal to improve your credit. Only ask for a higher credit limit if you think you’ll stay within your current average spending amount.
3. Complete payments on time
Paying your bills by their due date is the easiest way to improve your credit. This can become harder if you have multiple credit accounts, as they won’t always have the same due dates. Keeping track of your due dates (found on the monthly statements) via credit card management apps or similar tools can help you stay on top of your bills.
If you can do so, making multiple payments on your card(s) throughout the month is the smartest move. This is because it can increase the likelihood that your credit utilization ratio is low when your credit card provider reports your data to the credit bureaus.
How often do credit reports and scores update?
While there isn’t an exact date when your credit score and report will update, it usually occurs within a 30- to 45-day timeframe. This also depends on when the credit bureaus refresh the information in your report. Remember that if you have multiple lines of credit, you’ll see your credit score constantly fluctuating based on when your creditors report to the credit reporting agencies.
How long until a new card appears on your credit report?
Just received and activated a new credit card? You’ll need to wait a bit to see your new credit card appear on your credit report. You can expect it to show up 30 to 60 days after your application was approved and your creditor opened the account. The number of days will depend on your credit card’s billing cycle.
Assess your credit with Lexington Law
Now that you have a better understanding of when companies report to credit bureaus, it’s also a good time to assess your credit score. If you receive your credit report and notice your credit score isn’t as good as it should be, don’t worry. With help from professional credit repair consultants at Lexington Law Firm, you may be able to improve your credit through our credit repair process. Get started with a free credit assessment today.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Reviewed By
Nature Lewis
Associate Attorney
Before joining Lexington Law as an Associate Attorney, Nature Lewis managed a successful practice representing tenants in Maricopa County.
Through her representation of tenants, Nature gained experience in Federal law, Family law, Probate, Consumer protection and Civil law. She received numerous accolades for her dedication to Tenant Protection in Arizona, including, John P. Frank Advocate for Justice Award in 2016, Top 50 Pro Bono Attorney of 2015, New Tenant Attorney of the Year in 2015 and Maricopa County Attorney of the Month in March 2015. Nature continued her dedication to pro bono work while volunteering at Community Legal Services’ Volunteer Lawyer’s Program and assisting victims of Domestic Violence at the local shelter. Nature is passionate about providing free knowledge to the underserved community and continues to hold free seminars about tenant rights and plans to incorporate consumer rights in her free seminars. Nature is a wife and mother of 5 children. She and her husband have been married for 24 years and enjoy traveling internationally, watching movies and promoting their indie published comic books!
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
Personal loan interest rates can range from 6 to 36 percent and are based on various factors. Your interest rate may depend on your credit score, the lender type and other factors based on your financial situation.
Recent data shows Americans have over $241 billion in personal loan debt. Whether you have personal loan debt or are considering taking out a personal loan, this may not always be bad debt. When used responsibly, personal loans can help you get better interest rates by consolidating other debts or help when you need additional funds. When taking out a loan, it’s helpful to know the average personal loan interest rates so you can get the best deal possible.
The interest rate is a fee based on the percentage of the loan amount, so ideally, you want the lowest interest rate possible. We’re going to discuss the average interest rates based on various factors, like your credit score and lender types, to help you find a loan that has the best rates.
Average personal loan interest rates by credit score
One of the best ways to get the lowest interest rates for personal loans is by having a high credit score. There are ways to get a loan with bad credit, but these loans often have some of the highest interest rates. High interest rates mean you may pay hundreds or thousands more in interest fees when you take out a loan. Below is a chart showing the difference between interest rates when taking out a loan based on your credit score:
Credit score
Average loan interest rate
300 – 629
28.50% – 32.00%
630 – 689
17.80% – 19.90%
690 – 719
13.50% – 15.50%
720 – 850
10.73% – 12.50%
Source: Bankrate
Average personal loan interest rates by lender type
You have a variety of options when taking out a personal loan. You can go into traditional brick-and-mortar financial institutions like banks or credit unions and find personal loans online. Some of these lenders may even offer bad credit loans, but remember, these typically come with higher interest rates.
In the following sections, we show interest rates from some of the most popular lenders from each category. As you’ll see, each lender has a range of interest rates, which depends on your credit score, income and other financial information.
Average personal loan rates by bank
Personal loan interest rates from banks can range from 6.99 percent to 24.99 percent. Currently, Santander Bank offers the lowest interest rate range.
Average personal loan rates by credit union
Credit unions are another way to get personal loans, and they’re similar to banks except they’re member cooperatives and not-for-profit. Each of the credit unions listed below has lower interest rates on the higher end of the range, with none being over 20 percent.
Average personal loan rates by online lender
Many people turn to online lenders because not only are they convenient, but they’re also more likely to lend to those with bad credit or those who need a personal loan after a bankruptcy. Depending on your credit score and credit history, some of these personal loans have the highest interest rates.
5 factors that affect your personal loan interest rate
If you’re in the market for a personal loan, it’s helpful to know what lenders are looking for. This helps you get approved for the loan and the best interest rate possible. If you have poor credit, using a cosigner may help with approval, but if you want to get a personal loan without a cosigner, here’s what lenders are looking at:
Credit score and report: Your credit score and report show your credit history and how likely you are to pay back your loan. A low credit score can lead to higher interest rates.
Income: Lenders use your income to determine the loan amount and whether you can pay the amount back.
Debt-to-income ratio: Your debt-to-income ratio is a calculation of how much debt you currently have compared to your income. Ideally, it should be low.
Employment status: Employment shows a steady flow of income. If you’re self-employed or an independent contractor, it may make getting a loandifficult.
Length of loan: Shorter loan terms often come with higher interest rates.
What is a good personal loan interest rate?
What’s considered a “good” personal loan interest rate will depend on the person and their situation. Typically, a good interest rate is anything below the average rate for your credit score. Ideally, you want to improve your credit to get even better interest rates on personal loans.
How your credit score affects your personal loan interest rate
Your credit score and credit history play a big part in getting a good personal loan interest rate. As mentioned earlier, a high interest rate can cost you thousands in additional interest fees. If you have a bad credit score, you may have errors on your credit report that are hurting your credit. Lexington Law Firm offers an in-depth credit assessment that shows you where your credit stands before you apply for a loan. Get your free credit assessment today.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Reviewed By
Nature Lewis
Associate Attorney
Before joining Lexington Law as an Associate Attorney, Nature Lewis managed a successful practice representing tenants in Maricopa County.
Through her representation of tenants, Nature gained experience in Federal law, Family law, Probate, Consumer protection and Civil law. She received numerous accolades for her dedication to Tenant Protection in Arizona, including, John P. Frank Advocate for Justice Award in 2016, Top 50 Pro Bono Attorney of 2015, New Tenant Attorney of the Year in 2015 and Maricopa County Attorney of the Month in March 2015. Nature continued her dedication to pro bono work while volunteering at Community Legal Services’ Volunteer Lawyer’s Program and assisting victims of Domestic Violence at the local shelter. Nature is passionate about providing free knowledge to the underserved community and continues to hold free seminars about tenant rights and plans to incorporate consumer rights in her free seminars. Nature is a wife and mother of 5 children. She and her husband have been married for 24 years and enjoy traveling internationally, watching movies and promoting their indie published comic books!
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
Some credit facts you need to know are your credit score is based on five key factors, FICO credit scores range from 300 to 850, checking your own credit won’t hurt your score, and twelve more facts outlined below.
With all of the misleading and incorrect information about credit floating around, it’s no wonder some of us feel lost when it comes to our credit reports and credit scores. Fortunately, we’re here to help set everything straight with these simple and clear explanations.
We’ve taken the time to compile the most important credit facts you need to know to understand your credit and everything that impacts it. Just as importantly, we’re setting the record straight when it comes to credit myths that have been lingering for too long. Read on to learn everything you’ve always wanted to know about credit.
1. Your credit score is based on five key factors
Most lenders make their decisions using FICO credit scores, which are based on five key factors. That means that when you apply for a new credit card or loan, these are the primary influences on whether you’ll end up getting approved. Here are the five factors, in order of importance: payment history, credit utilization, length of credit history, credit mix and new credit inquiries.
35% – Payment history. Your ability to consistently make payments has the biggest impact on your score. Having late and missed payments is detrimental to your credit score, while a streak of on-time payments has a positive effect.
30% – Credit utilization. Your utilization measures how much of your available credit you’re using across all of your cards. By using one-third or less of your total credit limit, you could help improve your credit.
15% – Length of credit history. In general, having a longer credit history is helpful, though it depends on how responsibly you’ve used credit over time. Using credit well over time signals to lenders that you can be trusted to manage your finances.
10% – New credit. Applying for new credit leads to hard inquiries, which can negatively impact your credit score. Spacing out your new credit applications—and only applying for credit when you need it—helps your score.
10% – Credit mix. Having a variety of different types of credit—like credit cards, an auto loan or a mortgage—can influence your score as well. A diverse credit portfolio demonstrates your ability to successfully manage different types of credit.
With the knowledge of exactly how your score gets calculated, you can make smarter decisions with credit.
Bottom line: Credit scores aren’t as mysterious as they first appear, and you have control over all of the factors that determine your score.
2. Credit reports are different than credit scores
Although they are related, a credit report and a credit score are different. Also, it’s a bit misleading to talk about a single credit report or a single credit score, because the reality is that you have several different credit reports, and your credit score can be calculated in many different ways.
A credit report is a collection of information about your credit behaviors, like the accounts you have and when you make payments. Three main bureaus—Experian, Equifax and TransUnion—each publish a separate credit report about you.
A credit score uses the information in your credit report to create a numerical representation of your creditworthiness. In other words, all of the information in your report is simplified into a single number that gives lenders an idea of how likely you are to repay a debt.
Surprisingly, your credit report does not include a credit score. Instead, lenders who access your report use formulas to determine a score when you apply for credit. The most common scoring models are FICO and VantageScore, but lenders can make modifications to the calculations to give more weight to areas that are more important to them.
Bottom line: You’ll want to be familiar with both your credit reports and your credit scores, as they each play a role in helping you obtain new credit.
3. Negative credit items will eventually come off your credit report
Negative items on your credit report can cause damage to your credit score. Negative items include late payments, collection accounts, foreclosures and repossessions.
Although these items can lead to significant drops in your credit score, their effect is not permanent. Over time, negative items have a smaller and smaller impact on your score, as long as your credit behaviors improve so that more recent items are more favorable.
Additionally, most negative items should remain on your report for seven years at the most due to the regulations set by the Fair Credit Reporting Act. A bankruptcy, on the other hand, can last up to 10 years in some cases.
Bottom line: Negative items can cause a decrease in your credit score, but they aren’t permanent. Start building new credit behaviors and your score can recover over time.
4. FICO credit scores range from 300 to 850
One of the most common credit scoring models is produced by the Fair Isaac Corporation, also known as FICO. While you may hear “FICO score” and “credit score” used interchangeably, there are in fact several different scoring models, so you could have a different credit score depending on which lender or financial institution you’re working with. The score you’re assigned by FICO will usually always be in a range from 300 to 850.
Accessing your FICO score gives you the chance to have a high-level overview of your credit health. Scores that are considered good, very good or exceptional often make it much easier to get new credit cards or loans when you need them. On the other hand, scores that are fair or poor can make getting new credit more difficult.
Here’s an overview of the FICO scoring ranges:
800 – 850: Exceptional
740 – 799: Very Good
670 – 739: Good
580 – 669: Fair
300 – 579: Poor
Remember, though: credit scores are not fixed and permanent. Your score responds to factors like payments, utilization and credit history, so positive decisions now will benefit your score in the long term.
Bottom line: The FICO scoring ranges lay out broad categories to give you a sense of how you’re doing with credit—and can also help you set a goal for where you want to be.
5. The majority of lenders use FICO scores when making decisions
While there are multiple credit scoring models, the majority of lenders check FICO scores when making decisions. That means that when you apply for new credit—whether it’s a credit card, a loan or a mortgage—the score that’s more likely to matter is your FICO score.
That’s important to know, because many free credit monitoring services will show you score estimates or your VantageScore. Some credit card companies provide a FICO score, however, and you can also request to see the credit score that lenders used to make their decision during the application process.
Fortunately, credit scoring models tend to reference the same data and weight factors fairly similarly. That means if you make on-time payments, keep your utilization low, avoid opening up too many new accounts and have a consistent credit history with a variety of accounts, you’ll probably be in good shape regardless.
Bottom line: Knowing your FICO score can help you have an idea of how lenders will view your application for new credit.
6. You have many different types of credit scores
Credit scores vary based on the credit bureau reporting them and the credit scoring model used. The major credit bureaus all have slightly different information regarding your credit history. This means that these three, along with other credit reporting agencies, report several FICO credit scores to lenders to account for different information they’ve collected.
There are also different scores specific to particular industries. For example, auto lenders review different risk factors than mortgage lenders, so the scores each lender receives might differ. Although it can get confusing, the most important things to remember are the five core factors that affect your credit score.
Bottom line: Although many people reference their credit score in the singular, the truth is that there are many different types of credit scores that take into account different factors.
7. Checking your own credit won’t hurt your score
Many people believe that checking their credit score or credit report hurts their credit, but fortunately, this isn’t true. Getting a copy of your credit report or checking your score doesn’t affect your credit score. These actions are called “soft” inquiries into your credit, and while they are noted on your credit report, they shouldn’t have any effect on your score.
Hard inquiries, on the other hand, are noted when lenders look at your credit during an application process—and these can temporarily reduce your score. This is used to discourage you from applying for new credit too frequently. However, the effect is typically small, and after a couple of years the notation of a hard inquiry will leave your report.
Bottom line: You can check your own credit report and credit score without any negative effect—and we actually encourage you to do so to stay on top of your credit health.
8. You can check your credit score and credit reports for free
There are three main ways to check your credit for free. You’ll likely want to take a look at both your credit reports and your credit scores. Here’s how to get a hold of both of those:
You’re entitled to a free credit report once each year by visiting AnnualCreditReport.com, a government-sponsored website that gives you access to your reports from TransUnion, Experian and Equifax.
You may be able to check your credit score free by contacting your bank or credit card company. Additionally, many free services—like Mint—enable you to monitor your score for free. Just make sure to note which kind of credit score you’re seeing, because there are many different scoring methods.
The information you find in your credit report lays out the factors that determine your credit score. By scanning your report closely, you’ll likely find out the best strategy for improving your score—for instance, by improving your payment history or lowering your utilization.
Bottom line: Information about your credit is freely available, so take advantage of those resources to stay on top of your credit report and score.
9. Your credit score can cost you money
Ultimately, the purpose of credit scores is to help lenders determine whether they should offer you new credit, like a loan or a credit card. A lower score indicates that you may be at greater risk for default—which means the lender has to worry that you won’t pay back your debts.
To offset this risk, lenders often deny credit applications for those with lower scores, or they extend credit with high interest rates. These interest rates can cost you a lot of money over time, so working to improve your credit score can have a measurable effect on your financial life.
Consider, for example, a $25,000 auto loan. With a fair credit score, you may secure an interest rate of 5.3 percent—so you’ll pay a total of $3,513 in interest over five years. With an excellent credit score, your rate could drop to 3.1 percent, and you’ll save nearly $1,500 in interest charges over that same five-year period.
Bottom line: A good credit score can have a positive impact on your finances, and a bad score can cost you money in interest charges.
10. Canceling old credit cards can lower your score
If you have a credit card that you’re no longer using, you may be tempted to close the account entirely. Before doing that, though, consider how it could impact your credit score.
Recall that two credit factors are utilization and length of credit history. Closing an old account could affect one or both of those factors when it comes to calculating your score.
Your credit utilization could drop after closing an account because your credit limit will likely be lower. Since utilization represents all of your balances divided by your total credit limit, your utilization will go up if your credit limit goes down (and if your balances stay the same).
Your length of credit history could be lowered if you close an older account that is raising the average age of your credit.
Some people worry that having a zero balance on their credit card can negatively impact their score. This is just a credit myth. A zero balance means you aren’t using the card to make any purchases. Keeping the credit card open while not using it actually works to your benefit. You’re able to contribute to the length of your credit history, while not risking the chance of debt and late payments.
You may need to use the card every now and then to avoid having it closed. Additionally, if the card has an annual fee, you may need to close the card or ask to have the card downgraded to a version that does not have a fee. Still, if there’s a way to keep the card open, it’s often good to do so even if you don’t plan to regularly use it.
Bottom line: An old credit card can benefit your credit score even if you aren’t using it anymore.
11. You can still get a loan with bad credit
It’s true that getting a loan can be more difficult with bad credit, but it’s not impossible. There are bad credit loans specifically for people with lower credit scores. Note, however, that these loans often come with higher interest rates—or they require some sort of collateral that the lender can use to secure the loan. That means if you don’t pay your loan back, the lender will be able to seize the property you put up as collateral.
If you don’t need a loan immediately, you could consider trying to rebuild your credit before applying. There are credit builder loans, which are specifically designed to help you build up a strong payment history and improve your credit in the process. Unlike a traditional loan, you pay for a credit builder loan each month and then receive the sum after your final payment. Since these loans represent no risk to lenders, they’re often willing to extend them to people with poor credit history looking to raise their score.
Bottom line: You can get a loan even with bad credit—but sometimes it’s wise to find ways to raise your score before applying.
12. Credit scores aren’t the only deciding factor for lending decisions
While credit scores are important in lending decisions, lenders may take other factors into account when deciding whether to offer you new credit. For example, your income and employment can play a significant role in your approval odds. Additionally, some loans (like auto loans and mortgages) are secured by collateral that the lender can seize if you default. These loans may be considered less risky for the lender in certain cases because the asset can help offset any losses from nonpayment.
In many cases, your debt-to-income ratio is also an important factor in whether you’re approved for a loan or credit card. Lenders consider your current monthly debt payments (from all sources) as well as your monthly income to determine whether you may be overextended financially.
Two different people may pay $1,500 each month for student loans, a car payment and a mortgage. That said, if one individual makes $3,500 each month and the other makes $8,000 each month, their situations will be considered very differently by a potential lender.
Bottom line: Keeping your credit score high can help you secure credit when you need it, but you’ll want to stay on top of all aspects of your financial health.
13. Your credit report can help you spot fraud
Regularly checking your credit report can help you notice fraud or identity theft. If someone is using your information to open accounts, they will show up on your credit report.
If you notice an account that you did not open, you’ll want to start taking steps to protect your identity from any further damage. You may also want to freeze or lock your credit, which prevents anyone from using your information to open up more accounts.
Bottom line: Reviewing your credit report provides you an opportunity to notice when something is amiss.
14. Joint accounts affect your credit scores, but you do not have joint scores
If you have a joint account with someone else, that account will be reflected on both of your credit reports. For example, a loan that was opened by you and your spouse will show up for both of you—and will affect both of your credit scores. That said, your credit history, credit report and credit score remain separate. No one—including married couples—has a joint credit report or joint credit score.
In addition to joint accounts, you may also have authorized users on your credit card, or be an authorized user yourself. Authorized users have access to account funds, but they are not liable for debts. That means that if you make someone an authorized user on your credit card, they can rack up charges, but you’ll be on the hook if they don’t pay.
Because joint account owners and authorized users can influence credit scores in significant ways, we advise you to be careful about who you open accounts with or provide authorization to.
Bottom line: Even though joint account owners and authorized users can influence someone else’s credit, there are no shared credit reports or joint credit scores.
15. Many credit reports contain inaccurate credit information
The Federal Trade Commission found that one in five people has an error on at least one of their credit reports, and these inaccuracies can greatly impact your credit. (Also see this 2015 follow-up study from the FTC for more information regarding credit report errors.) This is why you should frequently check your credit report and dispute any inaccurate information. For example, since payment history accounts for 30 percent of your credit score, one wrong late payment can significantly hurt your score.
It’s important to get your credit facts straight so you understand exactly how different things impact your score. One of the first things you should learn is how to read your credit report so you can quickly spot discrepancies and ensure that the information reported is fair and accurate.
After scrutinizing your credit report, you can look into other ways to fix your credit, like paying late or past-due accounts, so you can help your credit with your newfound knowledge. You can also take advantage of Lexington Law Firm’s credit repair services to get extra help and additional legal knowledge to assist you.
Bottom line: Your credit report could have inaccurate information that’s hurting your score unfairly. Fortunately, there is a credit dispute process that can help you clean up your report and ensure all of the information on it is correct.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Reviewed By
Nature Lewis
Associate Attorney
Before joining Lexington Law as an Associate Attorney, Nature Lewis managed a successful practice representing tenants in Maricopa County.
Through her representation of tenants, Nature gained experience in Federal law, Family law, Probate, Consumer protection and Civil law. She received numerous accolades for her dedication to Tenant Protection in Arizona, including, John P. Frank Advocate for Justice Award in 2016, Top 50 Pro Bono Attorney of 2015, New Tenant Attorney of the Year in 2015 and Maricopa County Attorney of the Month in March 2015. Nature continued her dedication to pro bono work while volunteering at Community Legal Services’ Volunteer Lawyer’s Program and assisting victims of Domestic Violence at the local shelter. Nature is passionate about providing free knowledge to the underserved community and continues to hold free seminars about tenant rights and plans to incorporate consumer rights in her free seminars. Nature is a wife and mother of 5 children. She and her husband have been married for 24 years and enjoy traveling internationally, watching movies and promoting their indie published comic books!
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
A person’s credit score can impact their finances positively and negatively. Entities from commercial banks to auto loan lenders uses credit scores to determine if they’re willing to trust an applicant. FICOⓇ and VantageScoreⓇ, the two most popular scoring models, assign credit scores from 300 to 850—and higher scores typically pave the way for more lucrative deals.
Whether you have no credit history whatsoever or you’re looking to improve your current credit standing, everyone has the power to work on their credit. There is no set timeline for how long it can take to improve your credit, as everyone’s individual circumstances are different. Keep that in mind as we share 15 of the best ways to work to build credit fast in 2024.
Key takeaways
Making timely payments can help you more quickly build credit since payment history makes up 35 percent of your FICO credit score.
Becoming an authorized user on another credit card can help improve your score over time.
Removing errors on your credit report can help your score most accurately reflect your credit history.
Table of contents:
1. Apply for credit builder loans
Any kind of loan you secure can help you build credit if you make payments on time and in full. However, credit builder loans specifically exist to help borrowers improve their credit. If approved, applicants will pay into a secured account that they can only access at the end of their term.
Pro tip: A lender will normally approve low- or no-credit borrowers for a credit builder loan, but anyone can apply regardless of their standing.
2. Build credit with rent payments
Building credit with rent payments can be especially effective for individuals with no credit history. Your timely rent payments won’t raise your score automatically, as landlords don’t typically report rent payments to the credit bureaus. Instead, you’ll need to find a rent reporting service that can add your payments to your credit report.
Pro tip: You can enroll in rent reporting services with any of the three major credit bureaus: EquifaxⓇ, ExperianⓇ and TransUnionⓇ.
3. Maintain your oldest accounts
A person’s credit age, or length of credit history, makes up 15 percent of your FICOscore. This means that closing an old account can lower your score by reducing your overall credit age. If you have an old credit card, even if you don’t regularly use it, it’s usually best to keep that account open.
Pro tip: You can call your credit card issuer and request that the annual fee be waived on an old card.
4. Apply for a retail credit card
Stores and online vendors that offer retail credit cards can help you quickly build credit if you’re a frequent shopper, with one important caveat: you must use the card responsibly. These cards may come with unique bonuses like cashback rewards or discounts. Just be careful not to overspend so you’re able to pay your balance off in full every month.
Pro tip: Retail cards can benefit frequent shoppers who also have the funds to pay off their debts quickly.
5. Challenge errors on your credit report
Credit reports are intended to reflect your spending habits, but no system is perfect. Sometimes, a payment you’ve made doesn’t get reported on time or you notice inaccuracies elsewhere on your report, like an account you never opened. Lexington Law Firm can check your credit report for errors or discrepancies and challenge them on your behalf.
Pro tip: You can request one free credit report annually from each of the three credit bureaus.
6. Apply for a secured credit card
Secured credit cards traditionally have lower interest rates and higher credit limits than unsecured cards. The caveat is that borrowers will have to put down collateral to be eligible, but responsibly using secured cards can significantly improve your credit.
Pro tip: For secured credit cards, collateral comes in the form of the cash deposit you make when you first open the account.
7. Use a credit monitoring service
Credit monitoring services can help borrowers get a better sense of what’s happening on their credit profile. Many services can also dispute errors and take action if they detect fraudulent activity. Lexington Law Firm offers credit monitoring services and other features like ID Theft Insurance and help with challenging errors on credit reports.
Pro tip: Lexington Law Firm also provides free credit assessments to help you understand which services might benefit you the most.
8. Make timely payments
Payment history accounts for roughly 35 percent of your FICO credit score and about 40 percent of your VantageScore. Consistently making payments on time will display your financial reliability and responsibility to lenders and credit bureaus.
Pro tip: Using autopay can reduce instances of forgetting to make payments on time.
9. Increase your credit limit
Your credit utilization ratio weighs your current account balances against your total credit limit. Increasing your credit limit can give you more breathing room when borrowing funds. Borrowing $500 with a $1,000 limit would give you a 50 percent utilization rate. Borrowing $500 with a $2,000 limit would give you a 25 percent utilization rate.
Pro tip: It’s best to keep your credit utilization ratio below 30 percent if you can.
10. Become an authorized user on another account
Becoming an authorized user on another account lets you borrow funds on a credit card that you may not have access to otherwise. Positive action on that account can affect everyone who’s linked to it—and the same goes for negative habits. You can become an authorized user on another account even if you have no or bad credit history, provided you have the primary account holder’s permission.
Pro tip: It’s best to only become an authorized user on an account where the cardholder already has good or better credit.
11. Acquire a student credit card
Student credit cards typically have less stringent requirements than their grown-up alternatives. Responsibly using these cards can help new borrowers prove their creditworthiness.
Pro tip: Student card requirements normally include enrollment at qualifying institutions, proof of income or a cosigner and no bad credit history.
12. Use a rapid rescoring service
It takes varying amounts of time for changes to be added to your credit report. Rapid rescoring for a mortgage can help your credit by quickly updating your credit report with new information. For a fee, a mortgage lender can pay credit reporting companies to expedite the reporting process for someone who’s looking to take out a home loan.
Pro tip: It can generally take roughly 30 to 45 days for a change to appear on your credit report.
13. Meet with a financial advisor
While it’s becoming increasingly easy to access financial information, not everyone has the years of experience needed to add context to that information. Financial advisors can offer tailored strategies to help clients reach specific goals and improve their credit standing.
Pro tip: You can find a financial advisor to meet with online if you don’t want to meet with one in person.
14. Download credit-building apps
Credit-building apps can help borrowers improve their scores in various ways. Some apps can provide custom recommendations based on the data you provide them. Others can offer incentives and in-app rewards to help promote better financial habits.
Pro tip: Many commercial banks offer free apps with credit-building features.
15. Use a credit builder card
Much like a credit builder loan, this option helps low- and no-credit borrowers increase their standing. Credit builder cards function just like normal cards, but they usually come with more stringent limits like higher interest rates and lower overall limits.
Pro tip: Credit builder cards often have more lenient eligibility requirements than other commercial bank cards.
Improve your credit knowledge with Lexington Law Firm
We’ve outlined some of the best ways to build credit fast in this guide, but there’s still plenty of additional information that could help you increase your financial literacy. Learning how to read a credit report and knowing which factors affect your credit score are vital long-term skills. Lexington Law Firm’s team of professionals can help you gain a better understanding of your credit profile. Get your free credit assessment today.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Reviewed By
Nature Lewis
Associate Attorney
Before joining Lexington Law as an Associate Attorney, Nature Lewis managed a successful practice representing tenants in Maricopa County.
Through her representation of tenants, Nature gained experience in Federal law, Family law, Probate, Consumer protection and Civil law. She received numerous accolades for her dedication to Tenant Protection in Arizona, including, John P. Frank Advocate for Justice Award in 2016, Top 50 Pro Bono Attorney of 2015, New Tenant Attorney of the Year in 2015 and Maricopa County Attorney of the Month in March 2015. Nature continued her dedication to pro bono work while volunteering at Community Legal Services’ Volunteer Lawyer’s Program and assisting victims of Domestic Violence at the local shelter. Nature is passionate about providing free knowledge to the underserved community and continues to hold free seminars about tenant rights and plans to incorporate consumer rights in her free seminars. Nature is a wife and mother of 5 children. She and her husband have been married for 24 years and enjoy traveling internationally, watching movies and promoting their indie published comic books!
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
The lowest possible credit score is 300 for FICO® and VantageScore®. Your credit score doesn’t start at 300, but it can drop due to negative marks on your credit report.
The average credit score in the United States was 716 as of 2022, according to Experian®, and this is a credit score that many people would be happy to have. Using the FICO® score range, 714 falls within the “good” range, but what is the lowest credit score?
There’s a common misconception that the credit score you start with is zero, but that’s not the case. Today, you will learn what the lowest credit score is and the factors and situations that affect your score. Most importantly, we’ll give you some tips to potentially improve your credit, which could save you money and give you more access to lines of credit and loans.
What’s the lowest credit score?
A 300 credit score is the lowest credit score you can have, but this isn’t necessarily the score that you start with. You don’t get a credit score until you have a bill reported to the major credit bureaus. If you’re making your payments on time, you may have a credit score that starts in the 600s. Typically, if you have the lowest credit score of 300, there are negative marks on your credit report that are lowering your score.
Your credit score may differ depending on which scoring model you’re looking at. While the most popular scoring model is FICO, there is also VantageScore®. Both scoring models have a total scale of 300 to 850, so the lowest possible credit score is 300 for both models.
Using the table below, you’ll notice that the ranges are slightly different, but they use a scale of 300 to 840.
FICO
VantageScore
300 – 579 (Poor)
300 – 499 (Very poor)
580 – 669 (Fair)
500 – 600 (Poor)
670 – 739 (Good)
601 – 660 (Fair)
740 – 799 (Very good)
661 – 780 (Good)
800 – 850 (Exceptional)
781 – 850 (Excellent)
5 reasons people have low credit scores
As mentioned, it’s a misconception that your credit score starts at zero. In reality, some derogatory marks can lower your credit score to 300. Your credit score comprises different factors like your payment history, debt, credit age, new credit inquiries and mix of credit types. In many cases where a person has a low credit score, they’re taking actions that negatively affect the five main factors that determine a credit score.
Your credit score is a simplified way for lenders to assess risk. Negative marks on your credit may be a red flag to lenders that you are not capable of paying back a loan. Some of the most common reasons people have low credit scores include:
Poor payment history: Your payment history makes up 35 percent of your credit score, so missing payments and late payments can lower your score significantly.
Collection accounts: When you stop making payments on an account, the lender can sell your debt to a collection agency. This can negatively affect your score for up to seven years.
Bankruptcies and foreclosures: Depending on which type of bankruptcy you file, it can hurt your credit for the next seven to 10 years. Foreclosures stay on your credit report for seven years, according to the Consumer Financial Protection Bureau.
Too many hard inquiries: Each time you apply for a credit card or other services that run a hard inquiry on your credit report, it can hurt your credit.
Errors on your credit report: Sometimes, lenders or other businesses that report to the credit bureaus make mistakes. For example, they may say that you missed a payment. If this happens, you can dispute the errors and potentially help your credit.
Keep in mind that some of the above will hurt your credit more than others.
6 tips to improve your low credit
Achieving the max credit score of 850 is difficult and takes time, but it’s an attainable goal for everyone to improve their low credit. You can improve your low credit with some simple steps and good habits. Even if you have the lowest credit score of 300, over time, you can raise your score to good or even excellent.
Pay off collection accounts: One of the first things you can do to work on your score is to pay off your collection accounts. These hurt your credit quite a bit, so paying them off helps. When you do this, be sure to send a pay-for-delete letter to potentially have the negative mark removed from your report.
Address errors on your report: If there is an error on your credit report, disputing the error may get it removed from your report and improve your score.
Set up automatic payments: Making your payments on time should help improve your credit. Even if you pay just the minimum on your credit cards, on-time payments are beneficial. If you have the funds, you can make additional payments to pay down your debt faster as well.
Keep your credit utilization low: Your credit utilization is the amount that you owe compared to your total credit limit. Ideally, you want this below 30 percent. For example, if you have a $1,000 credit limit, you wouldn’t want to owe more than $300.
Monitor your credit: A great way to work on your score is to check your credit regularly. This can alert you to errors and allow you to adjust your behaviors if you see your credit dip. This is also a great way to stay motivated as you see your credit begin to improve.
Apply for more lines of credit: Yes, applying for too many lines of credit can hurt your score, but you can apply strategically. Having more lines of credit increases your max credit limit and can lower your credit utilization. This also helps with improving your credit age and payment history if you make your payments on time.
Don’t let errors harm your credit
Errors on your credit report can be frustrating and difficult to navigate when you’re dealing with the major credit bureaus. While you can do it on your own, help is available. If you have a low credit score due to errors on your credit report, you don’t have to go through the credit repair process alone. Lexington Law Firm has helped thousands of people repair their credit and has sent out over 221 million credit challenges since 2004. We have a team of credit professionals who are here to help you with your credit by challenging the credit bureaus on your behalf while also providing other services like credit monitoring. To get started, sign up today.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Reviewed By
Nature Lewis
Associate Attorney
Before joining Lexington Law as an Associate Attorney, Nature Lewis managed a successful practice representing tenants in Maricopa County.
Through her representation of tenants, Nature gained experience in Federal law, Family law, Probate, Consumer protection and Civil law. She received numerous accolades for her dedication to Tenant Protection in Arizona, including, John P. Frank Advocate for Justice Award in 2016, Top 50 Pro Bono Attorney of 2015, New Tenant Attorney of the Year in 2015 and Maricopa County Attorney of the Month in March 2015. Nature continued her dedication to pro bono work while volunteering at Community Legal Services’ Volunteer Lawyer’s Program and assisting victims of Domestic Violence at the local shelter. Nature is passionate about providing free knowledge to the underserved community and continues to hold free seminars about tenant rights and plans to incorporate consumer rights in her free seminars. Nature is a wife and mother of 5 children. She and her husband have been married for 24 years and enjoy traveling internationally, watching movies and promoting their indie published comic books!
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
A soft credit check occurs when someone accesses your credit report for information purposes and does not affect your credit score or require your permission. Hard credit checks occur when someone accesses your credit report due to a credit application, temporarily impacting your credit score.
If you’re looking to apply for credit, you’ve likely wondered about the differences between soft vs. hard credit checks. Despite both involving credit report access, their purpose and impact differ significantly.
In this article, you’ll learn the differences between soft vs. hard credit checks, their purposes, how they affect your credit report and when and why creditors use them. Read the full guide for a comprehensive understanding of these types of credit checks, or you can jump ahead to the topic you need the most clarity on:
Table of contents:
What are credit checks?
A credit check is a process that financial institutions, such as banks or lenders, undertake to evaluate a potential borrower’s creditworthiness. Its main purpose is determining whether an individual is reliable and capable of paying their debts on time.
The credit check typically involves reviewing an individual’s credit health based on payment history, outstanding debts, length of credit history and types of credit used. This information helps lenders decide whether to grant loans, extend credit or enter financial agreements with individuals.
What is a soft credit check?
A soft credit check, also known as a soft pull or a soft inquiry, is a type of credit check conducted to gather information about an individual’s credit history without impacting their credit score. Soft credit checks include:
You reviewing your credit report
Loan pre-qualification assessments
Background checks
Individuals can initiate their own soft inquiries, as can potential employers or financial institutions aiming to preapprove individuals for credit opportunities.
Does a soft credit inquiry hurt your score?
No, a soft credit inquiry does not hurt your credit score. They’re essentially harmless and typically occur for informational purposes, such as when you check your credit report.
Only you can see soft inquiries on your credit report, which do not impact your overall credit standing. These inquiries don’t suggest that you are taking on new debt, so credit scoring models do not penalize you for them. And since they don’t negatively affect credit scores, you can request them freely without risking your creditworthiness.
What is a hard credit check?
A hard credit check, also known as a hard inquiry or hard pull, occurs when a lender or financial institution reviews your credit history as part of a credit application process. The purpose of a hard credit check is for lenders to determine the terms of the credit offer based on your creditworthiness.
These inquiries can slightly lower your credit score, usually by a few points, but their impact diminishes over time. Lenders typically perform hard credit checks if you apply for:
Auto, student and personal loans
An apartment
Credit cards
A mortgage
Be mindful of the number of hard credit checks you accumulate within a short period, as multiple inquiries may signal to lenders that you are taking on too much debt and may not be an ideal borrower.
Does a hard credit inquiry hurt your score?
Unlike soft credit checks, hard credit checks can negatively affect your credit. During a credit application, the lender will typically request a hard credit check to assess your creditworthiness. They may review your credit history, resulting in a small credit score decrease. That said, hard credit checks usually have minimal impact—usually just a few points—and their impact diminishes over time.
Fortunately, the credit scoring models consider that borrowers may shop around for credit options, which is apparent in how they handle multiple inquiries.
Do multiple inquiries count as one?
Generally, credit score models will count multiple inquiries of the same type, such as multiple auto loan inquiries, within a specific time frame as a single inquiry on your credit report. This is called deduplication—removing duplicate inquiries to minimize the negative impact on your credit. These deduplication periods recognize that individuals may shop for the best loan or credit card terms and differ across credit models. For example, VantageScore® has a 14-day window, and FICO® gives you 45 days.
Consolidating credit applications within this time frame allows you to compare offers without worrying about each inquiry affecting your creditworthiness. However, this may not apply to inquiries for different credit types.
How long do credit checks stay on your report?
Soft checks usually do not directly impact your credit, but they can remain on your report for around two years. While these inquiries are visible to you, lenders and creditors accessing your report can’t see them.
Hard credit inquiries can affect your credit score, but the impact is minimal and decreases over time. Most scoring models see recent inquiries as more relevant and important. These inquiries also stay on your credit report for about two years and are visible to anyone who accesses it.
Can you reduce the impact of hard credit checks?
While you can’t completely avoid the impact of hard credit checks on your credit, you can take a few steps to minimize it:
Consolidate your credit applications: As we mentioned, credit scoring models typically treat multiple inquiries as a single inquiry if they occur within a short period—usually around 14 – 45 days.
Avoid unnecessary credit inquiries: Being selective about the credit applications you submit can help prevent excessive inquiries, reducing the potential negative impact on your credit.
Monitor your credit report regularly: If you notice any errors or unauthorized hard inquiries, you can challenge them with the credit bureaus and seek credit inquiry removal.
How to dispute a hard credit card inquiry
When you are faced with a hard credit card inquiry that you believe is inaccurate or unauthorized, knowing how to dispute it is essential. By understanding the necessary steps to challenge a hard inquiry, you can protect your credit by ensuring the information on your credit report is correct.
Step 1: Compile supporting evidence by collecting essential documentation, including credit reports, any correspondence exchanged with the creditor and any evidence that disproves or indicates unauthorized hard inquiries.
Step 2. Thoroughly examine your credit report to identify the specific hard inquiry you intend to challenge. Take the time to review the report carefully and understand the details of the inquiry in question.
Step 3. Contact the creditor who made the hard inquiry and provide them with comprehensive details about the inquiry. To strengthen your case, ensure you have the necessary documents readily available. This can include an identification card, a utility bill, etc.
Step 4. If the creditor fails to respond or cooperate, proceed with filing a dispute directly with the credit bureaus. You can do this online, via mail or over the phone. Include all relevant information and clearly explain why you believe the hard inquiry is either incorrect or unauthorized.
After you’ve filed the dispute, the credit bureau will investigate the inquiry. As part of this process, they will reach out to the creditor and request verification of the inquiry. If the creditor does not respond within the designated time frame, typically 30 days, the credit bureau will eliminate the inquiry from your credit report.
Step 5. Stay vigilant by regularly monitoring your credit report to confirm the removal of the disputed inquiry. If the inquiry persists after the investigation, contact the credit bureau to seek an explanation. To resolve the matter, you may be required to submit additional evidence or escalate the dispute further.
Prevent what you can, credit repair what you can’t
Knowing the difference between soft vs. hard credit checks, how they occur and how to minimize their impact can help you maintain a positive credit history. This will increase your approval odds for agreeable loan terms and interest rates so you don’t end up with overwhelming levels of debt.
While prevention is the best approach, credit repair is useful if your report has negative items. Find out which service might work for you by getting your free credit assessment with Lexington Law Firm.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Reviewed By
Nature Lewis
Associate Attorney
Before joining Lexington Law as an Associate Attorney, Nature Lewis managed a successful practice representing tenants in Maricopa County.
Through her representation of tenants, Nature gained experience in Federal law, Family law, Probate, Consumer protection and Civil law. She received numerous accolades for her dedication to Tenant Protection in Arizona, including, John P. Frank Advocate for Justice Award in 2016, Top 50 Pro Bono Attorney of 2015, New Tenant Attorney of the Year in 2015 and Maricopa County Attorney of the Month in March 2015. Nature continued her dedication to pro bono work while volunteering at Community Legal Services’ Volunteer Lawyer’s Program and assisting victims of Domestic Violence at the local shelter. Nature is passionate about providing free knowledge to the underserved community and continues to hold free seminars about tenant rights and plans to incorporate consumer rights in her free seminars. Nature is a wife and mother of 5 children. She and her husband have been married for 24 years and enjoy traveling internationally, watching movies and promoting their indie published comic books!
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
A pay for delete letter is a negotiation tool intended to get a negative item removed from your credit report. It entails asking a creditor to remove the negative information in exchange for paying the balance.
If you have a spotty credit history and you’re working to turn your finances around, you may be wondering how to remove negative items on your credit report. Late payments, charge-offs, credit inquiries and overdue account citations can all count against you.
There are, however, a few ways to potentially have past mistakes removed, one of which is a pay for delete letter.
What is a pay for delete letter?
A pay for delete letter is a negotiation tool intended to get negative information removed from your credit report. It’s most commonly used when a person still owes a balance on a negative account. Essentially, it entails asking a creditor to remove the negative information in exchange for paying the balance.
Even if you’ve gotten yourself out of debt and paid off collection accounts, without a pay for delete letter, negative credit items can remain on your credit bureau file for up to seven to 10 years.
Time heals all wounds—including credit mistakes—but if you can’t simply wait around for your credit to improve, you’ll want to consider taking some actions toward repairing your credit. Read on to learn when you should send a pay for delete letter, view sample templates and discover other credit repair options.
How a pay for delete letter works
An individual with debt writes a pay for delete letter to a collection agency with a request to remove negative information from their credit report in exchange for payment.
First, in order to understand how and why a pay for delete letter works, you’ll need some background on collection agencies.
Collection agencies are in the business of collecting debt. Some collection agencies are contracted to collect for a creditor and receive a percentage of what’s collected. Others buy the debt and seek collection as the “current creditor.”
Usually, a collection agency will only consider offering a pay for delete letter when you’re willing to pay more than it paid for the debt. There’s no magic number, but generally knowing what the other party wants gives you more information about what to include in your pay for delete letter. This increases your chances of succeeding in the negotiation.
Tips for sending a pay for delete letter
A pay for delete letter isn’t a magical fix. Not all creditors will accept pay for delete letters. Typically, many creditors like corporate banks, credit unions and even small-town banks may not be receptive to this strategy.
However, small utility bills, such as phone, cable and power bills, that go to collections are more likely to be accepted by creditors. Before you send a pay for delete letter, here are some tips to help you avoid common mistakes.
Consider the status of your credit reporting time limit. Is the debt several years old and about to expire? If so, a pay for delete letter isn’t necessary—the debt will no longer impact your credit score after the time limit has expired. If the credit reporting time limit is still far away, you may want to send a pay for delete letter. In addition, if you want to purchase a home or a car, the lender may require that the collection items are paid off, so you may want to send a pay for delete letter.
Verify your debt. Before making a pay for delete offer, it’s imperative that you’ve sent a debt validation letter within 30 days of initial contact with the debt collector and received verification of debt from them. In some cases, collectors could request payment even if your state’s statute of limitations on overdue accounts has run out.
Reassess your financial situation. If your pay for delete letter is approved, you often will only have a short window of time to make the payment. Only send one if you’re confident you can pay the agreed-upon amount.
Save details for your records. Before sending the letter, be sure to keep a copy for your records. Then when the recipient accepts your terms (hopefully), keep a copy for your records and include a copy with your payment. Also, try to utilize a method that you can verify shipping and delivery, such a “return receipt” or Registered Mail. In the event of any complications, you’ll be glad you did these things.
Pay for delete letter template
Your pay for delete letter doesn’t need to be long and complicated—or even full of legal jargon. Be sure to provide all the relevant information like dates, payment amounts and other details specific to your scenario.
The template below can help you write your own pay for delete letter. Simply update the bolded portions with your own information.
<Your Name>
<Your Address>
<Your City, State, Zip Code>
<Collection Agency’s Name>
<Collection Agency’s Address>
<Collection Agency’s City, State, Zip Code>
<Date>
Re: Account Number <XXXXXXXXXXX>
Dear <Creditor’s Name>,
I am writing this in response to your recent correspondence related to account number <XXXXXXXXXXX>.
I accept no responsibility for ownership of this debt; however, I’m willing to compromise. I can offer a settlement amount in exchange for your written agreement to the following terms:
You agree to accept this payment as satisfying the debt in full (once you receive the agreed-upon amount).
You agree to not list this debt as a “paid collection” or “settled account.”
You agree to completely remove any and all references to this account from the credit reporting agencies (Equifax, TransUnion and Experian) that you have reported to and validated this account.
I am willing to pay the <full balance owed / $XXX as settlement for this debt> in exchange for your agreement to the above terms within fifteen calendar days of receipt of payment. Understand that this is not a promise to pay. This is a restricted settlement offer and you must agree to the terms above in order for payment to be made.
Should you accept, please send a signed agreement with the aforementioned terms from an authorized representative on your company letterhead. Once I receive this, I will pay <$XXX> via <cashier’s check/money order/wire transfer>.
If I do not receive your response to this offer within fifteen calendar days, I will rescind this offer and it will no longer be valid.
I look forward to resolving this matter quickly.
Sincerely,
<Your Name>
<Your Address>
<Your City, State, Zip Code>
Sample letter to remove collection from credit report
Now that you have a template to write your own pay for delete letter, let’s take a look at a sample letter to make sure you’re fully set up for success.
What happens if a pay for delete letter is rejected
You should always be prepared for the event that the collection agency rejects (or ignores) your pay for delete letter. Not all agencies will see the value in agreeing to your terms or the practice of pay for delete letters as a whole.
It’s also worth noting that any acceptance of your offer must be made and returned to you in writing. In the event of a solely verbal agreement, you won’t have the ability to prove that an agreement was reached if the collector doesn’t follow through and remove the information from your credit report.
If your letter was rejected, there are still some other routes you can take to repair your credit.
Other ways to potentially have negative credit report entries removed:
Send a goodwill letter
Negotiate a settlement
Wait out the credit reporting time limit
Hire a professional
Common questions surrounding pay for delete letters
Pay for delete is a unique credit repair strategy, so it’s understandable if you have some lingering questions about it. Below, we address some of the most common ones.
Does pay for delete increase credit score?
Pay for delete can potentially increase your credit score if your negotiation is successful, but its impact largely depends on your overall credit profile. If you have several accounts in collections, your score is less likely to increase much from a single negative item being removed.
If you have a single account in collections, on the other hand, your chances of improving your score via pay for delete improve.
Which collection agency owns my debt?
If you’re unsure which collection agency is holding your debt, there are a few strategies you can use to try to learn more. Consider the following:
Check if you have any missed calls or voicemails from collection agencies
Ask your original creditor for help with tracking it down
Get your credit report and check the details surrounding your debt
Can I send a pay for delete letter to the original creditor instead of the collection agency?
You should send a pay for delete letter to the original creditor as long as they haven’t sold your debt to a collection agency. If the original creditor has already sold your debt to a collection agency, you can contact them to see if they are willing to reclaim your debt from collections; however, there’s no guarantee that they will agree to this proposal.
Is a pay for delete letter legal?
Sending a pay for delete letter is a legal way to negotiate to have negative items removed from your credit report. However, it’s important to note that creditors aren’t legally required to respond or accept the request.
Oftentimes, creditors have contracts with the credit bureaus that prohibit them from removing accurate information from credit reports. If that’s the case, the creditor may not be able to enter into a pay for delete agreement with you.
Are pay for delete letters still common?
In recent years, pay for delete letters have become less common. This is partially because the latest credit scoring models, FICO® 9 and 10 and VantageScore® 3.0, do not take paid collection accounts into consideration when determining your credit score. There’s a chance these letters, even if approved, won’t impact your score at all.
Credit reporting agencies also discourage pay for delete efforts, strongly recommending that only inaccurate information be removed from reports. For these reasons, pay for delete is becoming a much less common practice.
That being said, if you’re in a more stable financial position now and expect collections activity to harm your credit, a pay for delete letter may be a good option for you to try DIY credit repair.
If you’re still not sure how to proceed or your pay for delete letter was rejected, consider equipping yourself with some personal finance tools and working with a credit consultant for a free credit report consultation.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Reviewed By
Nature Lewis
Associate Attorney
Before joining Lexington Law as an Associate Attorney, Nature Lewis managed a successful practice representing tenants in Maricopa County.
Through her representation of tenants, Nature gained experience in Federal law, Family law, Probate, Consumer protection and Civil law. She received numerous accolades for her dedication to Tenant Protection in Arizona, including, John P. Frank Advocate for Justice Award in 2016, Top 50 Pro Bono Attorney of 2015, New Tenant Attorney of the Year in 2015 and Maricopa County Attorney of the Month in March 2015. Nature continued her dedication to pro bono work while volunteering at Community Legal Services’ Volunteer Lawyer’s Program and assisting victims of Domestic Violence at the local shelter. Nature is passionate about providing free knowledge to the underserved community and continues to hold free seminars about tenant rights and plans to incorporate consumer rights in her free seminars. Nature is a wife and mother of 5 children. She and her husband have been married for 24 years and enjoy traveling internationally, watching movies and promoting their indie published comic books!
The decision whether to seek debt forgiveness can have serious consequences for taxes and credit standing. This article is not intended as legal advice for your specific circumstances and does not create an attorney-client relationship with Lexington Law.
Debt forgiveness occurs when a lender forgives either a portion of or the entire debt owed by a borrower from a loan or credit account.
Debt forgiveness occurs when a portion of a loan or the entire remaining amount of a loan or credit line is canceled, relieving the borrower from the obligation of repayment. Before moving forward with debt forgiveness, it’s important to consider the potential benefits and drawbacks so that you’re fully prepared.
It’s also important to note that debt forgiveness differs from debt relief, which involves reorganizing debt to facilitate repayment—but doesn’t cancel the debt.
Continue reading to learn more about debt forgiveness and explore different options that you may qualify for.
Debt forgiveness benefits
Debt forgiveness can provide relief to those who are struggling to make payments, and it has the following benefits:
You can avoid filing for bankruptcy: Debt forgiveness can prevent the need to file for bankruptcy, which would severely damage your credit for up to seven to 10 years.
You can pay less than your original obligation: While the amount you’ll pay varies depending on the program you choose, it is typically much less than the amount you originally owed.
You can pay your debts quicker: Through debt forgiveness, you can significantly reduce your debt in a much shorter time frame than you initially expected.
Debt forgiveness drawbacks
On the other hand, debt forgiveness has the following downsides that you should be aware of:
You may owe taxes on the amount that’s forgiven: In general, canceled debt is considered taxable income that you may be responsible to cover.
You could owe more than your original obligation: Many debt relief companies charge excessive fees that could equal or exceed the amount you originally owed. Additionally, it’s important to change your financial habits so you don’t continue to rack up debt.
Your credit may take a hit: Depending on the type of debt that’s forgiven, you could notice a negative effect on your credit. However, this will likely not be the case if the debt in question is student loans or medical bills.
Because of these drawbacks, you may want to consider other debt management options.
Debt forgiveness vs. debt consolidation
An alternative to debt forgiveness that you may want to consider is debt consolidation. While this method doesn’t cancel the debt, it can help you pay it off faster and accrue fewer interest charges.
One of the most common debt consolidation methods is a balance transfer, which involves moving debt to a new credit card that offers 0% APR for a few months. During this time, you can work to pay off your debt without racking up interest.
Other options include taking out a personal loan or home equity loan to pay off your debt. The strategy here is that your new loan would have a lower rate than that of your current debt, allowing you to save on interest
Just be wary of for-profit companies that promise debt relief via consolidation, as they’re often pricey. Instead, look to nonprofits such as the National Foundation for Credit Counseling.
How to get debt forgiveness
If you’re moving forward with debt forgiveness, you have a few options depending on loan type and your overall personal and financial situation.
Federal programs
One of the few ways to get true debt forgiveness without consequences is to see if you’re eligible for a special program. Typically, these are only offered for student loan debt and home mortgages:
Student loan forgiveness: In mid-2023, student loans totaled $1.7 trillion. To help alleviate this, the Public Service Loan Forgiveness (PSLF) program provides Direct Loan forgiveness for full-time workers of U.S.-based or non-profit organizations who have made 120 qualified monthly payments. Another type of student loan forgiveness is income-driven repayment plans, which forgive the remaining loan balance at the end of a repayment period. Thirdly, if you’re a teacher, you may be eligible for a Teacher Loan Forgiveness program.
Mortgage debt forgiveness: The Mortgage Forgiveness and Debt Relief Act, enacted in 2007, lets eligible borrowers exclude up to two million dollars in forgiven mortgage debt from their taxable income. This allows forgiven mortgage debt and foreclosure balances to be truly penalty-free.
You may be eligible for other federal programs to help manage debt. To explore your options further, the Federal Trade Commission has guidelines for getting out of debt.
Settlement
Settlement is by far the most common form of debt forgiveness. It’s the process of negotiating your debt to only repay a portion of your outstanding balance. The rest is forgiven, meaning repayment is not necessary.
Borrowers tend to choose debt settlement if they can’t afford expensive and persistent debt payments. They may also choose this route as an alternative to declaring bankruptcy, since debt settlement should only stay on your credit report for seven years.
However, it’s important to watch out for hefty fees from these companies. If hiring a debt settlement agent is beyond your means, keep in mind that negotiating on your own is an option. First, you’ll need to determine your outstanding balance and what monthly payment you can afford. Next, contact your creditor. You’ll need to explain why you can no longer afford the loan and then negotiate a lump sum. If they agree, ask for a written letter so you have legal proof of the settlement.
Statute of limitations
If you’re seeking debt forgiveness for credit card debt, you may be able to leverage the statute of limitations (SOL) in your state. The SOL is applicable once a certain amount of time has passed (typically three to 15 years depending on what state you live in) and your debt collector hasn’t pursued debt collection in court. After this time frame, they have no legal claim to your money, and they should no longer be able to successfully sue you to collect the debt. However, this approach is risky for a number of reasons.
SOL start to accrue after the date of last activity, which includes payments and charges. After your SOL expires, a lawsuit can still be filed against you—but you can use the SOL as a defense in court.
Bankruptcy
Filing for bankruptcy is an option and that decision will remain on your credit report from seven to ten years. That said, it may help forgive some of your debt.
If you file for Chapter 7 bankruptcy, your debt is forgiven and some of your assets remain with you subject to certain state and federal exemptions.
If you file for Chapter 13 bankruptcy, you’re still required to pay off your debts. However, the court will assign you a payment plan spanning anywhere from three to five years, and they may reduce your outstanding balance to lessen the financial burden.
What are the consequences of debt forgiveness?
After you have a portion of your debt forgiven, you may feel like you’re out of the woods—and for the most part, that’s true. However, there are a few circumstances you’ll need to be aware of so that you’re prepared for the effects debt forgiveness may have on your finances.
Taxes
No matter which debt forgiveness route you take (with the exception of bankruptcy), you’ll likely end up with a higher taxable income. If the amount of forgiven debt exceeds $600, you’ll receive a 1099-C form titled “Cancellation of Debt” from the creditor.
With this form, you report the amount of your forgiven debt to the IRS and pay income tax on it. When you first take out a loan or borrow money, you’re not charged taxes on it because there’s the assumption that you’ll pay it back. But after debt forgiveness, that assumption no longer applies, which is why this essentially “free money” is now considered taxable income.
The upside is that the income tax you owe on the forgiven debt amount is less than what you would have to pay if you still owed the debt. Make sure to plan for this expense so that it doesn’t surprise you, especially if the forgiven amount is sizable.
Consider contacting a qualified tax professional for help accurately filing your taxes. Then, once you properly report your debt forgiveness to the IRS, you’ll want to check your credit report.
Credit score
The unfortunate reality is that debt forgiveness may negatively affect your credit score. Of course, there is no way to say for sure. What will improve is your debt to income ratio. The effect to which debt forgiveness impacts your credit largely depends on how you choose to seek debt forgiveness.
Bankruptcy can be the most devastating option for your credit score. According to Debt.org, a FICO score of 780 could take a 240-point dip, and a score of 680 could take a hit of 130 – 150 points. If your credit score is much lower than 680, you may not see as large of a dip. However, if you have no late payments or charge off on your credit report prior to filing bankruptcy, your score dip is far less.
Debt forgiveness provides a much-needed solution for borrowers struggling to make payments. However, it also comes with conditions. When considering which debt management plan is right for you, a little careful planning can go a long way.
If overwhelming debt has caused your credit to dip below where you’d like it to be, see if we could help. We can take a look at your credit report and assist you with moving forward.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Reviewed By
Nature Lewis
Associate Attorney
Before joining Lexington Law as an Associate Attorney, Nature Lewis managed a successful practice representing tenants in Maricopa County.
Through her representation of tenants, Nature gained experience in Federal law, Family law, Probate, Consumer protection and Civil law. She received numerous accolades for her dedication to Tenant Protection in Arizona, including, John P. Frank Advocate for Justice Award in 2016, Top 50 Pro Bono Attorney of 2015, New Tenant Attorney of the Year in 2015 and Maricopa County Attorney of the Month in March 2015. Nature continued her dedication to pro bono work while volunteering at Community Legal Services’ Volunteer Lawyer’s Program and assisting victims of Domestic Violence at the local shelter. Nature is passionate about providing free knowledge to the underserved community and continues to hold free seminars about tenant rights and plans to incorporate consumer rights in her free seminars. Nature is a wife and mother of 5 children. She and her husband have been married for 24 years and enjoy traveling internationally, watching movies and promoting their indie published comic books!
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
Banks, credit unions and online lenders provide debt consolidation loans once borrowers go through the application process and meet certain criteria.
The average American credit card debt is roughly $5,010 per person, and many Americans struggle with additional forms of debt like loans and other bills. Loans come with interest rates, which make the overall cost higher than the original amount borrowed, and past-due bills can harm your credit. Fortunately, debt consolidation loans can help.
Today, you’ll learn what these loans are as well as how to get approved for a debt consolidation loan in five simple steps. Regardless of where your credit stands, you may get approved for one of these loans to help you lower interest rates and save some money as well.
What is a debt consolidation loan?
A debt consolidation loan is an unsecured personal loan designed to simplify the debt repayment process. Combining multiple balances into a single fixed-rate loan can potentially allow you to secure a lower interest rate on your debts and may enable you to pay them down faster.
Not only can you use debt consolidation loans to pay off other loans, but many people also use these loans to consolidate their bills. If you’re looking to consolidate credit card debt, you can use a loan or a balance transfer card.
How to apply for a debt consolidation loan
Debt consolidation means combining multiple debts into a single loan with one fixed monthly payment. This type of personal loan will ideally allow you to combine several high-interest debts into a new loan with a lower interest rate. If managed properly, it can yield significant money-saving benefits. However, there are a few steps you should take before applying for a debt consolidation loan.
Step 1: Check your credit
Your credit is one of the primary factors lenders will look at to determine whether or not your loan will be approved. Typically, approval is more likely if you have at least a good FICO credit score, which ranges from 670 to 850.
There are many ways to check your credit score and report for free, and this is often a good idea before you apply for debt consolidation loans. When a lender checks your credit, the hard inquiry can temporarily hurt your credit, so it’s better to know your chances of approval beforehand.
If you have poor credit, here are some ways to improve it before applying for a loan:
Catch up on late payments that are less than 30 days old
Pay off smaller debts to reduce your credit utilization rate
Check your credit report for errors, and challenge any errors you find
Step 2: Make a plan
Before you apply for loans to consolidate your debt or bills, it’s beneficial to make a plan. You can start by listing all of your various debts and bills that you want to pay off. These may include:
Credit cards
Bills
High-interest loans
Store credit cards
You can then add up each of these debts and the required monthly payments for each of them. Now, you can make a plan to see how much money is needed to pay these debts off and how much money you will save when you get a consolidation loan.
When devising this plan, you may want to create a monthly budget at the same time to ensure you can make the new monthly consolidation loan payments on time.
Step 3: Shop around
Whenever you’re applying for loans, remember that there may always be a better deal out there. Different lenders provide different interest rates on loans, and the lower the interest rate, the better. You also have different options when it comes to where you go to take out a loan:
Bank loans: Your current bank may provide loans, and if you have a long-term relationship with the bank, they may be more likely to approve a consolidation loan with bad credit.
Online lenders: There are many online lenders, and these lenders are known for providing loans to those with bad credit. Keep in mind that lenders who specialize in providing loans to people with bad credit may also have higher interest rates.
Credit unions: These not-for-profit financial institutions are often local and may provide you with better rates than other options. In order to take out a credit union loan, you’ll need to apply to be a member and meet certain criteria.
Step 4: Go through the application process
Now that you have settled on a financial institution, it’s time to go through the application process. A debt consolidation loan application may require the following documentation:
Proof of residence
Bank and other financial statements
Pay stubs or proof of income
Government-issued photo ID
After you provide the necessary documentation, the lender will run a hard inquiry to check your credit history and score. Credit scores are a way for lenders to assess the risk level of potential borrowers. Negative marks on a credit report may indicate that a person is likely to default on a loan, which is why it’s helpful to improve your credit score before you apply.
Step 5: Close the consolidation loan and make your payments
If you’re approved for the loan, the lender may provide your funds in one of two ways:
Paying creditors directly: The lender may pay off your debts directly. If this is the case, it’s recommended to continue making your payments until you receive written verification that the debts are settled.
Direct payment to the borrower: The lender may pay you directly by depositing the money into your bank account or providing you with a check. If this is the case, you’re then responsible for paying off your creditors. You may want to pay off the creditors sooner rather than later so you don’t continue to accrue interest fees.
What if your debt consolidation loan is denied?
If your loan application is denied, it can be for a variety of reasons. The lender may see something on your credit report that throws up a red flag, or you may not meet their income criteria. Should this happen, you will receive a letter through the mail or email explaining why they denied your application.
A denial of a loan isn’t the end of the road, and you have a few options you can turn to:
Try to apply for a lower amount: Depending on the amount you request, the lender may decide that you’re too high of a risk. By lowering the amount, they may approve the loan.
Apply with other lenders: Applying for loans triggers hard inquiries that temporarily lower your score, so do your research beforehand. If you’re denied, look for lenders that offer preapproval or specialize in debt consolidation loans for bad credit.
Look into debt management plans: There are various companies that offer credit counseling and debt management plans to help you repay your debt. Some of these services require payment for the counseling, but there are also some that are nonprofit organizations.
Sign up for credit repair: If your loan was denied because of poor credit, it might be due to errors on your credit report. Companies like Lexington Law Firm offer credit repair services and challenge credit reporting errors on your behalf.
Debt consolidation loan FAQ
Here we’ve provided some helpful answers to debt consolidation loan FAQ.
How hard is it to get a debt consolidation loan?
If you have a bad credit score, it can make it difficult to get a debt consolidation loan. You may want to try a bank or credit union that you have a relationship with, or try to repair your credit first.
How can you qualify for a debt consolidation loan?
Typically, a good credit score of 700 or higher is the best way to qualify for a debt consolidation loan. This will also help you get the best interest rates.
Can debt consolidation loans hurt your credit?
The initial hard inquiry into your credit score will temporarily lower your score. As long as you stay current with your monthly payments, your score should be fine and will potentially get higher over time.
What’s the minimum credit score needed to get a consolidation loan?
A fair FICO® credit score of 580 to 669 may be enough to qualify at financial institutions for a debt consolidation loan.
Improve your credit before taking out a debt consolidation loan
As you now know, debt consolidation loans can be a great way to pay off your debt faster and potentially lower your interest rates. If you have poor credit and need assistance before applying for a debt consolidation loan, allow Lexington Law Firm to help.
We have a team of credit professionals, and we’ll assess your credit report to see if any errors are harming your credit. We also offer additional services to help you work toward and maintain good credit. Sign up for your free credit assessment today.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Reviewed By
Nature Lewis
Associate Attorney
Before joining Lexington Law as an Associate Attorney, Nature Lewis managed a successful practice representing tenants in Maricopa County.
Through her representation of tenants, Nature gained experience in Federal law, Family law, Probate, Consumer protection and Civil law. She received numerous accolades for her dedication to Tenant Protection in Arizona, including, John P. Frank Advocate for Justice Award in 2016, Top 50 Pro Bono Attorney of 2015, New Tenant Attorney of the Year in 2015 and Maricopa County Attorney of the Month in March 2015. Nature continued her dedication to pro bono work while volunteering at Community Legal Services’ Volunteer Lawyer’s Program and assisting victims of Domestic Violence at the local shelter. Nature is passionate about providing free knowledge to the underserved community and continues to hold free seminars about tenant rights and plans to incorporate consumer rights in her free seminars. Nature is a wife and mother of 5 children. She and her husband have been married for 24 years and enjoy traveling internationally, watching movies and promoting their indie published comic books!