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Credit Classifications, What Type Are You?
In the debt collection world we rate them A, B, C, D, etc… In reality the terms are defined as follows: A Credit (aka Pristine) = No blemishes, all accounts paid on time. Usually having assets (house, cars, and recreational vehicles). Usually defined as 800+ credit score. B Credit (aka Good) = May have some late pays OR medical bills. If there are any collections they are paid. Most of the time there are some assets on the credit report, although with a high enough credit score, long term good pay history, or good debt to income ratio; it is possible to be a B credit and not have assets. Usually defined as 700+ credit score. C Credit (aka Middle of the road) = Some credit good and some credit bad. Normally reflecting some behind bills, but also having accounts in good standing. Normally this is the cross roads to D credit if the consumer is falling or B credit if they are repairing. Normal credit score ranges from the low to high 600’s. D Credit (aka Falling) = Showing late pays but not quite 5+ months past due. A reflection that things are going in a downward spiral. There is a fine line between D and F credit. Normally credit scores in the upper 500’s to lower 600’s. F Credit (aka Trashed) = Late pays all over the place 5+ months, most of the time with multiple collections, sometimes with judgments, no accounts in good standing. Normally with a credit score in the 500’s. No Credit (aka Credit Ghost) = no credit at all. You don’t exist on paper. Credit score 0. So which credit score are you? if you have ordered your credit report or already have one, you should be able to recognize one of these types. At worst you should be able to attribute your credit to 2 of these, which means you’re in the middle of those 2 types. The good news is no matter where you rank, there is light at the end of the tunnel. Now that you can recognize what type of credit you have, that is the first step. You have to have a starting point…now you can get on the road to fixing it! In my next article, I will discuss the different types of credit. Then will move on to how to fix the bad credit, and debt collectors. The United Credit Authority – Online Resources For Credit, Debt and Credit Repair
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