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. » Read more: Understanding What is a Fico Score and Tips on Hiring the Best Credit Repair Service
Posts Tagged ‘Equifax’
Understanding What is a Fico Score and Tips on Hiring the Best Credit Repair Service
March 8th, 2010Bad Credit Repair Advice – Help to Get You Back on Track
February 22nd, 2010
Repairing bad credit is not difficult, but it does take time. There are many legitimate credit repair firms and they do help. They deliver, but they cannot guarantee results in twenty-four hours. There is no overnight fix and it could take years to completely turn your credit around. You can, however, work with one of these firms and get yourself on the road once again to financial betterment. Here is some advice you can follow before meeting with the local firm you have chosen to help you.
Your credit report
The first thing you should do is order a copy of your credit report from each of the three crediting bureaus – Experian, Equifax and Trans Union. Go to each one carefully and identify any inconsistencies or errors so that you may bring them to the attention of the firm you are working with to repair your bad credit. From there, they will ask you for supporting documentation to back up your claim and they will help you prepare appropriate correspondence to send back to the credit bureau to have the item verified or removed from your report. The credit bureau has thirty days to comply.
If you have negative information on your credit report that is due to a previous marriage, identity theft or similar scenario, the credit repair company you are working with can help you prepare a letter explaining your side of the story. This is called a ‘consumer’s statement’ and the credit bureau will re-open that item in lieu of new information. Make sure that you get a copy of your new credit report. If you do not receive one, your credit repair firm can request one for you.
A little known fact
Many people do not know that they can have the repaired credit report resent to anyone that turned you down for credit. The credit repair firm will help you determine which companies pulled your credit report over the last six months – that’s as far back as you can go – and help you submit the request demanding that they send the corrected report. If you were turned down for a job over the last two years because of credit report problems, you can have it sent to them as well. It probably won’t get you that job, but it is the principle of the matter.
Things to watch out for
Some credit repair firms will ask you to prepay them for their services. The law states that they must wait for payment until they have completed the services you contracted them for. That means you will see results before you turn any money over to them. This is one of the many scams that have been reported to the Better Business Bureau of the years.
Also, never allow your credit repair company to use any tricks to fix your credit. This includes swamping the credit bureaus with letters and requests on the same day about the same individual. This technique does not work. In fact, this may actually cause the credit bureau to slow down and take their sweet time or ignore your request all together.
There are some things on your credit report that you simply will not be able to remove until the statute of limitations is up, such as bankruptcy which cannot come off your credit report for ten years.
By: Robert Newsome
Repair Your Credit and Prevent Future Credit Problems
February 22nd, 2010
When should you consider credit repair? A lot of people assume their credit is fine, when in fact there may be mistakes applied to your credit report that you don’t even know about. What if you are unaware of this and try to apply for a loan?
There could be many reasons why your credit isn’t as perfect as it should be. Maybe you were a couple of days late on a payment? How could this affect you?
Why You Should Repair Your Credit?
If you need a loan in the future, for whatever reason, a bad credit report can lead to problems and declines. While everyone has a different history, most people will need a medium to high credit score in order to purchase a new home, cars or other essentials.
You don’t want to be left in the lurch when trying to apply for a loan. It’s too easy to fix your credit score, so don’t make yourself vulnerable. Act now and you could save yourself a lot of time and trouble down the road.
What Can You Do To Repair Your Credit?
The first thing to do is to check with the main credit reporting companies.
These credit-reporting companies are Experian, TransUnion and Equifax. By writing to each of these companies, you can get a report on your credit. This is the same credit report loan officers or credit card companies use to evaluate your application.
Read your credit report and determine if your credit score is as high as it could be. If you are not sure what your credit score should be, contact a credit repair company and ask them for assistance.
If you are familiar with credit scores, read back through your credit report for any errors. This could really be in any format. A company may have reported you were late for a payment, or that payment was not sent within such a length of time. Are all of the complaints correct? If they are not, you should request a change.
Why People Don’t Repair Their Credit
There is one major reason why many people don’t even bother with their credit report. It is because they don’t know there are things they can do to fix it.
If you find yourself in this situation, consider contacting a credit repair company that understands and can assist you. A good credit repair professional can help you to understand what can be fixed. They can also handle a lot of the paper work for you, leaving you free from the hassle.
In addition, a good credit repair company can teach you things to help improve your credit score and get you on the right track to getting that loan or credit card you need.
However, having a professional taking care of your credit score is only the first step in your total financial planning success. Your credit repair professional can also assist you with your future financial planning. For example, if you want to pay your bills on time or pay off credit cards.
In all, if you’re thinking about getting a loan or new credit card and are concerned about what your credit report says about you, contact your credit repair company and ask them for help. You don’t have to be alone in your search to a better financial future.
By: Lee Harrison
