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Here’s why millions trust this AI-powered app to improve their credit scores

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by Arianna Rodriguez February 18, 2022, 2:38 pm

Many Americans opt for credit cards, loans, mortgages, and insurance policies at some point in their lives to fulfill their financial aspirations and safeguard the financial future of their loved ones.  

Those who are yet to explore the factors that affect credit scores might be subjected to very high interest rates, insurance premiums, or credit application rejections. Today, 90 percent of lenders check credit scores to filter out applications. A poor credit score directly affects your financial credibility when applying for a line of credit.

More importantly, a poor credit score could make it hard for you to land jobs, find a place to rent, open a new business, and even get a new cell phone contract. Some companies conduct a credit review during background checks when hiring and landlords do the same to understand if a potential renter has the sense and ability to pay their monthly rents on time. 

Since the effects of a low credit score extend beyond your financial aspirations, it is vital to become financially aware enough to curate an effective personalized credit improvement strategy. But first, let’s understand the factors that could tank your credit score in the first place.

• Missing loan repayment deadlines could single-handedly tank your credit score by many points.
• Delinquency entries on your credit report could stay up to seven years for lenders to view.
• A high credit utilization rate could portray you as someone who uses credit more than monthly income. Maxing out your credit card for household needs or shopping points, for example, could prevent your credit score from improving.
• Credit mix determines your creditworthiness. It is basically the measure of your capability to acquire, manage, and consistently repay a mix of credit lines like credit cards, personal loans, and mortgages. 
• Every loan and insurance application leads to a hard inquiry on your credit report. This means that lenders fetch your credit score from the credit bureaus and the request pops up on your credit report. Too many of these entries may portray you as a high-risk borrower when applying for loans.

While all these factors play a role in determining your credit score, your repayment history and credit utilization are the two primary factors that largely influence your credit score. 

Those with a poor credit score often wonder how much time it may take to witness any improvement. Well, it really depends on the amount and type of negative information on your credit report. While loan applications show up on your credit report for up to two years, records of collection accounts or bankruptcy could stay for up to a decade.

Hence, it stands to reason that it is important to work towards lowering the impact on negative entries by prioritizing the credit score factors in an order that suits your personal credit stature best.

How Can the Personal Credit Management (PCM) App Help?

Credit Sesame’s self-evolving PCM platform is designed to improve your financial life in a transparent and effective way. The sign-up process only takes 90 seconds, and you can get your detailed credit report from TransUnion for free right away. Credit Sesame doesn’t require a credit card to sign up nor will it affect your credit score to use their services in any way.

Their proprietary technology analyzes your debt situation and offers financial tips and insights on how to prioritize your existing mix of loan accounts to save money. You can check your credit score, create a credit improvement plan from Credit Sesame’s smart insights, and use a host of other features like credit monitoring and loan/credit card recommendations completely free of charge.

Financial frauds through identity theft have been costing Americans hundreds of billions of dollars since the onset of the pandemic. If anyone opens a new loan account in your name, it’ll reflect in your credit report. 

Credit Sesame’s credit monitoring services will alert you in real-time of any changes to your credit score, loan accounts, credit limits, and personal information. In addition, the intuitive app offers assistance to dispute any errors in your credit report. So, if you frequently check your credit score through their free credit monitoring service, you can stay on top of your credit score improvement progress and significantly reduce the chances of incorrect entries. You can also ensure that cases of identity theft fraud don’t go unnoticed. 

A two-year survey of 750 Credit Sesame app users witnessed that those who prioritized payment deadlines improved their credit score by more than 45 points on average within 6 to 12 months. Many of those who lowered their credit utilization and maintained a healthy mix of credit lines improved their credit score by over 50 points within a year.