Credit Repair services » Credit Bureau

What Is A Good Credit Score?

admin — Fri, 30 Apr 2010 02:01:00 +0000

If you have ever gone shopping for a new car or made an attempt to purchase a new home then you are probably familiar with your credit score. Even if you haven’t made any type of purchase that required you to obtain a loan or credit due to the amount of money involved you’ve probably still seen or heard the words credit score mentioned on the television or in a business or financial article. The reason for this is because our financial well being in today’s complicated credit/loan society revolves around that very powerful three digit number known as our credit score.

There are many ways to explain what exactly our credit score is, but frankly trying to sort out the scientific and mental calculations involved only serves to give me one big giant financial headache. The main point to remember here is that the credit score determines an individual consumer’s credit worthiness as seen in the eyes of the three main credit score companies or bureaus as they are sometimes called. The score is based on a combination of a consumer’s current credit situation and their previous credit history with many additional mitigating factors.

The three main credit bureaus are Trans Union, Equifax and Experian. Each company has developed (with the Fair Isaacs Company) their own unique method to determine your FICO (credit) score. Don’t be alarmed by this because although each credit bureau has their own method for determining your credit score the numbers remain standardized across all three companies. For instance a 700 with Trans Union is equal to a 700 with Equifax and Experian.

So what exactly constitutes a good credit score? In order to determine that we first need to know the scoring parameters that makes up the scoring scale. As previously mentioned your credit score is influenced by a variety of factors such as outstanding debt, your credit history, the types of credit you current have or use and your payment history. These factors when analyzed form a score that can run anywhere from a low of 375 to a high of 830 or 900 depending on which expert you ask. These numbers generally serve as a guideline that a credit lender can then use to incorporate into their own credit rules that are tailored to their company’s in-house credit program. However generally speaking a credit score higher then 650 has the potential to be considered good credit in most cases. The national average for the FICO credit score varies. I’ve seen it as high as 723 and as low as 676. With that said a consumer with a credit score higher then 700 is considered excellent, a credit score between 601 – 699 is decent and anything less then 600 could probably use a financial makeover in order to raise the credit score.

Keep in mind that these categories could fluctuate depending on the national average and also remember these numbers just represent a guideline for lenders to use when determining your credit worthiness based on the FICO credit score. It’s their in-house line of credit rules and regulations that will ultimately decide if you have a high enough credit score to obtain financing at the most favorable terms offered by their company. Once thing is for sure the higher the credit score number the easier it is to receive credit and the more favorable the repayment terms are as far as interest rates go.

By: Tim Gorman

Which Credit Bureau Should I Use To Check My Credit Report?

admin — Sat, 17 Apr 2010 08:23:27 +0000

There are three main credit bureaus in the United States; Equifax, Experian and Trans Union. Each bureau collects your personal and financial information which is then sold to lenders such as banks, credit unions, credit card companies, mortgage and auto loan lenders. Your credit report is the product of this collected information. Lending and credit companies use your credit information to determine if they will approve you or not and at what interest rate you will pay.

Many people are recognizing the importance of checking their own credit report to verify its accuracy and to make sure that they know where they stand in the credit world. Until they begin the process to obtain a copy of their credit report, some people do not realize that they actually have three credit reports instead of just one. The three main credit bureaus keep separate credit records from one another and produce their own credit reports. Instead of the credit bureaus working together and sharing information among themselves like some people may think, they are actually competitors. That is why the information provided on one credit report will more than likely be different from the information provided on the credit report from another credit bureau. Therefore, it is recommended to check your credit report from all three credit bureaus in order to see the complete picture.

There are a couple of options to checking all three of your credit reports. You can contact each of the credit bureaus individually to request a copy. Or you can go through one of the many companies that provide a 3-in-1 credit report like [http://www.credit-report-credit-score.com]. Obtaining a 3-in-1 credit report is usually more convenient and user friendly to the consumer compared to requesting individual copies.

Verifying the data on all three of your credit reports is the only way to know that the information that potential lenders and creditors are evaluating you on is correct. When considering you for a loan, some lenders will pull your credit report from only one or two of the credit bureaus while other lenders will pull your credit report from all three. It is always a good idea to check your credit reports BEFORE applying for your next big purchase. Covering your bases beforehand can often times save you a lot of time and hassle during the application process.

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By: Beth Pardue

Instant Online FICO Score Credit Rating

admin — Fri, 16 Apr 2010 08:59:43 +0000

Your FICO score is the same as your credit score. It ranges from 300 -850, the higher the FICO score the better. This means that a higher FICO score makes your financial reputation appear less risky to banks, resulting in you higher chances of lower interest on your loans. This rating is most frequently used when clients apply to a bank for a mortgage. Having a higher credit rating will allow you to receive better interest rates and terms on your loan.

An average FICO score is from 700 to 720, if you are within the range then more banks would approve your loan. The computation of your score is based on your payment history, current amount of debt, length of financial history, number of consumer credit cards, and whether you have defaulted on any previous debts. As mentioned a previously, the range is from 300 to 850, and anything below 600 is considered to be a bad credit history and scores higher than 600 are usually viewed as a good credit line.

Because the Internet is a place of endless possibilities, you can now receive your FICO score through several different websites. This is excellent news to anyone who is curious about their own credit history, especially if you suspect you may need to to improve your financial reputation. All you need to do is make a request from an online credit bureau to receive your credit report. This will give you the chance to look over the contents, and check for any errors, fraudulent activity such as identity theft, and out of date information.

By: Zach Ford

The Perfect Credit Dispute Letter

admin — Wed, 07 Apr 2010 21:00:29 +0000

The key to repairing your bad credit is the Credit Dispute Letter. You’ve put so much effort (probably a lot of cash too) into eliminating old debts and creating good credit but if you want to rewrite history, credit-wise, you’ve got to convince the credit bureaus to take the eraser to your past. Getting the letter just right requires a lot more than perfect prose. As is so often true with life, success can come from what you don’t say, what you do, how you say it and never forget… timing.

When composing a Credit Dispute Letter remember the old adage: Less it more. Your letter isn’t meant to convince anyone but to point out errors. You are not saying “why” a debt is not listed accurately on your report, but rather “what” is not listed accurately. Start with a simple statement that will explain what you want the the credit bureau to do: On reviewing my credit report, I haved found these discrepancies. Please delete them from my credit report within 30 days as required by law and send me a report of the corrections” – that pretty much sums up everything, doesn’t it. The fact is you don’t need to beg them to remove old credit items, it is there legal responsibility to research anything you say is incorrect and IF they can’t prove it true they must delete it.

Now list virtually everything that could hurt your credit worthiness. It is up to you to decide if you want an item on your report but they probably won’t delete everything, so be aggressive. List the creditor, account number and amount of each item you would like gone. Use no more than three words of explaination: “account never late”, “duplicated account”, or “reported in error” should cover 90% of disputed items. Never say that a credit blemish is from fraud or criminal activity because you are saying that it is reporting true and you will have to prove you aren’t to blame. Say as little as possible.

It is the credit bureaus responsibility to act within 30 days but you want them to know when the clock starts. Send any Credit Dispute Letters certified mail with a signature required. From the moment someone signs for that letter they have 30 days to contact the reported creditors and get a written verification of the bad credit items. Time is on your side and you want the bureaus to know that.

By: Mitchell Torek

The Credit Repair Myth

admin — Mon, 22 Mar 2010 08:30:01 +0000

You have seen it on television oh so many times. A company promises to completely wipe things off your credit report and have your credit score fully restored virtually overnight. Well, unfortunately, real life is nothing of the sort. So called “credit repair” companies have the same powers over your credit report as you do. The simple fact is that you cannot just remove a legitimate debt from your credit report, period. You have to pay the debt or settle with the debt collector for an agreed amount. There are ways, however, to remove debts that are not legitimate. You do not need anyone to assist you to accomplish these tasks.

If there are erroneous debts on your credit report, you have to write to them with a formal letter and explain the discrepancy in detail. Tell them why you believe the debt is not legitimate, and provide copies of any documents and receipts to strengthen your case. When the credit bureau receives your letter, either they will remove it immediately (unlikely), or they will start an investigation into your claim. It takes about 30 days for this process to complete, and even a lot earlier sometimes. If you have used the same name and address for years on end, then they will have no trouble locating records about you, thus it is easier for them to complete the investigation.

After they are done, they send you a letter of decision. That letter will tell you that they found the debt to be accurate (it stays on the credit report), or they cannot prove the validity of the debt and remove it from your credit report. This is just an example of one of the simpler scenarios in dealing with the credit bureaus. Sometimes, the process can get complicated; getting to know the ins and outs of the credit industry can go along way towards helping you beef up your FICO score.

By: J. Junior