Credit Repair services » Credit Reporting Bureaus

Understanding What is a Fico Score and Tips on Hiring the Best Credit Repair Service

admin — Mon, 08 Mar 2010 22:27:55 +0000

FICO score is a credit scoring system that was developed in the1950s by Fair Isaac & Co. Today, the three major credit reporting bureaus Experian, Equifax and Trans Union all use FICO scores to evaluate the credit worthiness of almost 90% of the adult Americans. FICO scores can range from 300-850 and these scores are calculated on the basis of scoring models and mathematical calculations that are not revealed to the public. The higher the FICO score, the lower the risk to the creditor and hence if your FICO score is high, you end up with lower interest rates, faster loan approval time, lower insurance premiums and better employment prospects. If your score is low, you may be in need of the services of the best credit repair firm that can help you take repair action via a personalized credit repair program.

A FICO score of a person is determined by studying a person’s credit history. Late payments, charge offs, judgments/liens, bankruptcies, foreclosures, the total amount of credit used and the total credit that is currently available, credit cards issued, employment history, the amount secured as loans, their repayment history are all considered while determining a person’s FICO score. It is a snap shot of the credit worthiness of a person that is used by creditors when they evaluate any credit application. Persons with a FICO score of less than 500 are said to have a bad credit record and this qualifies them to seek the help of one of the firms offering best credit repair services. There are several genuine firms that operate online offering credit repair service for a nominal fee. The legally trained and experienced credit repair specialist will make it easy for those who wish to remove negative or inaccurate information from their credit reports in a hassle free manner.

The three main credit reporting agencies use three distinct types of FICO scores. The FICO score used by Equifax is referred to as BEACON, the one used by Experian is referred to as Experian/Fair Isaac Risk Model and the one used by Trans Union is referred to as FICO Risk Score, Classic. Each of them is compiled taking into account the data currently available at the individual credit reporting agencies. With credit repair support from a team of professionally qualified experts, people will have little difficulty in erasing erroneous reports and inaccurate information while the personalized repair plan of action ensures that they make improvements to their FICO score steadily. You can improve your FICO score and repair your credit report by hiring the best credit repair firm.

Credit Repair – Remove Negative Items – Is It Doable?

admin — Mon, 22 Feb 2010 14:14:44 +0000

Credit repair, remove negative items. Can it be done? You’ve probably come across ads promising to clean up your credit file, lower your payments, removing bad information, and/or help you open a brand new file. Can it be done?

As you probably know, there are three major credit reporting agencies in the US. By simple math, this makes it three times as hard to remove negative items.

Even if it were possible for one to break into one bureau’s computer, you would still have two to go. And, the cost for such a “service” would cost several times the already exorbitant fees that credit repair clinics charge, not to mention, the risk of spending a very long time behind bars.

Secondly, even if you somehow succeeded in removing negative items from one credit bureau’s report, creditors could still re-report them and you’re back to square one.

To cut a long story short, no one – except two parties – can remove negative information from your credit file. But don’t give up, there is hope.

Yes, you credit restoration and removal of negative information can be done. But it doesn’t take a day. And it’s not a walk in the park either. It takes time and effort.

You see, there are two parties (three if you count collectors), that can legally remove negative information from your credit file: The creditors (furnishers) and the credit reporting bureaus. Once a debt has gone to collections, the respective can collector can also remove a negative item that it has reported.

Now, there are two forms of negative credit information, (1) accurate and (2) inaccurate information. Needless to say, the latter is the hardest to get removed. But it can be done.

The same tricks and strategies that credit repair clinics charge hefty (and sometimes recurring) fees for you can apply yourself with equal or better results. Why pay when you can do it yourself for free?

In fact, most credit experts agree that the best repair is self credit repair. And it costs you nothing but your own time and effort. It involves learning the right strategies for negotiation, using the existing credit laws to your advantage and yes, some guts.

Once more, the best credit repair is self credit repair. Remove negative items tricks and strategies do exist. Unfortunately they are beyond the scope of this one article.

By: David Kamau

repair/remove credits

Bad Credit Repair – Understand Your Credit Report

admin — Wed, 30 Dec 2009 06:31:16 +0000

Due to changes made to the Fair Credit Reporting Act as of December 2003, the three credit bureaus TransUnion, Experian and Equifax are now required, at your request, to provide you with an official credit report, at no cost. This is allowed once every 12 months. You are encouraged to take advantage of this, and make sure that what is getting revealed to lenders and potential employers is totally accurate information.

With identity theft at an all time high (40 million Americans had their identities stolen a few weeks ago in the biggest case of identity theft in American history), it is very important to ensure that your credit report is correct. There are millions of people in need of bad credit repair that may not even know it because their credit reports have been compromised by identity thieves.

Before you can understand your credit report, you must obtain it. It is very simple to obtain a free copy of your credit report. You can use three different methods:

1. You may contact each of the three credit reporting bureaus directly either by phone or in writing:

Equifax

P.O. Box 740241

Atlanta, GA 30374

1-800-685-1111

Experian

P.O. Box 2002

Allen, TX 75013

1-888-397-3742

TransUnion

P.O. Box 1000

Chester, PA 19022

1-800-888-4213

2. You may use AnnualCreditReport.com and make your inquiry online.

3. You can call the toll-free Annual Report number at 877-322-8228 for more information.

Once you have your credit report in hand, how do you read it? There is a lot of information in these reports and it can be confusing. To begin your bad credit repair, you must be able to understand your credit report, right? Here is an outline of the information it contains:

The I.D. Section. This is where any information regarding your name, home address, social security number, date of birth, and spousal information (if applicable) is located. You will want to make sure this information is correct, because these are the components that define you.

Credit History. This is the main part of your report. You will want to examine this very closely and take your time. Any information that is incorrect should be disputed immediately. It will have a complete list of your open and paid credit accounts. Any late payments made will also be listed here. For each account, the following will be listed:

1. Company name

2. Account number

3. Your responsibility on the account i.e. individual, joint, co-signer, etc.

4. Date the account was opened

5. Number of months the account history has been reported

6. Last activity which will be your last payment or last charge

7. High limit – the highest amount your account has reached

8. Terms – if this is a car loans, the length of your loan may be included

9. Balance due on account

10. Past due amount at the time of the report

11. The type of account it is – revolving (like a credit card), installment (like a car or home loan) or open (like a line of credit)

12. Date reported – the last time your account information was updated on the account by the creditor

Collections Accounts. If any of your accounts have gone to collections in the past seven years, they will be listed here. If there is something that looks unfamiliar to you, it is important to dispute this immediately.

Courthouse Records. This is also known as public records. If there have been any judgments on any of your accounts i.e. bankruptcy records, child support settlements or any court-decided accounts, they may show up in this section. Again, inaccuracies should be disputed immediately.

Inquiries. This section will contain information on companies that have checked your credit in the last 24 months. Again if a company or inquiry looks unfamiliar, you will want to investigate this and see why this company is checking your credit. Multiple inquiries can decrease your credit score.

If you have been denied a loan, credit, or employment because of your credit score, do not be afraid to ask for information about it from whomever denied you. It is important to know what is being seen by potential lenders and employers, because what they see results in the approval or denial you will get.

If any portion of your credit report is inaccurate, or if you have outstanding debts, you should immediately begin the process of bad credit repair Higher credit scores will lead to more loan, credit card, and employment approvals along the ability to qualify for lower interest rates and money-saving promotions (such as cash-back, 0% APR, and travel rewards). Your credit report is very powerful and can impact your quality of life. Understand your credit report and take control.

-Ken S

© 2008

By: Ken S