The goal of any credit repair program is to improve your FICO score. A FICO score was developed by the Fair Isaac Co. to help determine the likelihood of you paying if a company agrees to loan you money. Fair Isaac s the only ones who know exactly what makes up their algorithm, which is the mathematical formula used to calculate your score
FICO scores are calculated from five factors reported from the three major credit reporting agencies. These five factors are how well you pay, how much do you owe, how long have you had credit, how much new credit do you have, and what types of credit are you using. Seven additional factors are then added and using a 0secret formula0 Fair Issac determines your score.
Included in your payment history are items like bankruptcies, judgments, suits, liens, wage garnishments, collection items and delinquencies. Credit availability, includes how much you owe, what types of accounts they are, and what percentage of all the credit you have that you are using. Under length of credit history the items that are considered are how long your accounts have been opened, what types of accounts they are, and and when did you last […]
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This time of the year, everybody is thinking about their finances. Money is on our minds. So while you’re rummaging through your receipts and reviewing those W2 forms, add a credit report to your list.Why get your credit report right now? Making sure your credit report is accurate can get you lower interest rates, save you money and help protect you from identity theft.Wow! A credit report can do all that? Well, yes. It’s quite a powerful financial record. The more you know about your report, the better off you’ll be when getting a mortgage…buying a car…renting an apartment…even getting a job.Put on your thinking cap. Let’s test your credit IQ.True or false: You have 3 separate credit reports, and each one can contain different information. True. Each of the big three credit bureaus—TransUnion, Equifax and Experian—keeps its own record on you and gathers information independently. That means each report is unique, and that can mean three different credit scores as well. In order to get your complete credit history, you should consider all three credit repots and scores. This combines all your information in one easy-to-read report.True or false: You only need to check your credit report once a […]
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