This seems like a contradiction but really it is not. Our years as a credit repair service have shown us that consumers are often confused by the idea that common sense should make FICO score “sense”. The truth is that common sense and the FICO score are far too often completely opposite. Many people think that in order to improve their credit score, they just have to pay off some debts and then close down their accounts to reflect “positive credit activity”. This is one of the most tragic misconceptions about credit. Continue reading “Credit Repair Services: Be Careful of Closing Accounts!” »
Credit Repair Service: Free Credit Reports?
As an experienced credit repair service, we see plenty of misinformation out there. For instance, most people think that if they want to pull their credit scores, they should go directly to the three major reporting agencies; Trans Union, Experian, and Equifax. Unfortunately, the credit reporting agencies DO NOT give you a “true FICO report”. The FICO score was created by Fair Isaac Corporation and is copywritten. Therefore the three reporting agencies have created their own copy-cat versions of the the FICO score model. Each credit reporting agency is a privately run organization and is not a federal institution. They each you different algrahythms (mathematical equasions) to calculate a consumer’s risk factors. These risk factors were carefully modeled after the FICO score but they aren’t exactly the same. Therefore, it is not un-common for a consumer to pull credit from one of the three major agencies listed above and be extremely shocked later to find out that a mortage lender or auto dealer pulled credit and the scores they were told they had were VERY different than the ones that the consumer pulled just hours before. Continue reading “Credit Repair Service: Free Credit Reports?” »
Credit Repair: Indentity Theft
One of the most common reasons why people need credit repair services is identity theft. Sometimes, people who are careful about paying bills on time and who keep their debt ratios low are shocked each year to find that they have poor credit scores. In many cases, this happens as a result of identity theft. Identity theft is a crime in which people take your personal information and pose as you in order to get access to your accounts or identity.Credit: How Much is Too Much?
If you have many lines of credit or several huge debts, lenders may consider you a credit risk. Even if you are making payments on time, lenders will look at your open tradelines and make an assessment. They will know that you may have a harder time paying off your bills if your debt load increases. Ideally, 3-5 open tradelines is best with no more than 30-40% of each credit line being used. Continue reading “Credit: How Much is Too Much?” »
Credit Repair: Creating a Game Plan
Evaluating the factors of the FICO score as individual pieces, can help simplify things. Start with the largest percentage of importance first. For example, 35% of your score is calculated by the amount of late payments and (derogatory payment history). Therefore, hiring an expert to dispute derogatory items legally and effectively is a way to streamline this process of improving one’s credit integrity. Second, understanding that a consumer should ideally have 3-5 open lines of credit with balances at 35% or lower of the credit limit is almost as important; 30% of your score is calculated on that very important piece. Continue reading “Credit Repair: Creating a Game Plan” »
Understanding Credit Scores
In order to benefit from any credit repair service, you will first need to understand credit scoring and what factors contribute to the FICO score and how one can manage those factors effectively. Without proper education on this topic, most consumers typically learn by first doing things incorrectly, which often creates a decrease in FICO score points. Continue reading “Understanding Credit Scores” »