There are three major credit reporting agencies which are Equifax, Experian and Transunion. They all have different formulas that they use to determine credit scores. The beacon credit score is detailed in the Equifax report. It is a program that uses statistics to compare scores and assess account performances.
If you have not heard of fair Isaac Corporation, you will soon because it is the most widely used software calculator. They use a new, unique mathematical formula developed by the corporation and report to the three major credit agencies.
Your credit score will determine the type of financing you will obtain or not obtain. You may obtain financing but at a higher rate.
The company reserves the right to disclose how the information is formulated and will reveal this information at a later date. However, they have stated it is based on a formula which takes into consideration the longevity and payment history. Everyone is evaluated on a case by case basis.
If you are interested in learning more about FICO, you may want to contact them directly and request more information. There are some companies that will look at the ‘whole person’ rather than numbers and scores.
There are ways that you can work on improving your score. You may want to look at these closely as there are ways that you can improve your score.
The first step is to get a copy of your report and study it! If there are any errors, work on getting them correctly. Contact the agency directly and let them know. If they do not respond or fix it, send them a letter.
Of course, you need to pay your bills on time. If you are not able to, call your creditor and let them know why. Most creditors are willing to work with you if you let them know what is going on.
You may want to purchase a short term loan and pay it back immediately. This will help improve your credit score.
Keep your balance below the limit. If you have a limit of $10,000.00 try to keep your balance low at all times, around $2,000.00 this will show that you are responsible with money, and are able to manage your money.
Shop around for lower interest cards. You can always transfer your balance to another card with a lower interest rate. This will help you because you will pay a lower interest rate.
Creditors like to examine and consider your overall credit value which is dependent upon whether you pay your bills responsibly, how long you have lived at your address, and what your overall credit history is and has been.
It is best to use your credit card for an emergency. This is the best way to think of credit cards and then in turn, pay it off as soon as possible.
Keep in mind that it is in your best interest to work on improving your credit score, so that you will pay lower interest rates and can obtain credit when you need it.
You have most likely been inundated with credit card information, credit information and ways to repair your credit. There are many advertisers stating that they can repair your credit and help improve your score. You most likely have received flyers and brochures in the mail that advertise these services. The internet has a multitude of websites advertising credit repair companies and credit information and services. It sounds hard to believe, doesn’t it?
Well it may be. The federal trade Commission is involved and they have released a statement stating that essentially, if it sounds too good to be true, then it is not! They will charge you upfront anywhere from $50.00 to thousands of dollars and then disappear!
It is a scam and they are attempting to warn people about it. If you have credit problems, the last thing you need to pay this kind of money for nothing.
Keep in mind, that there is no quick fix to improve your credit score or improve your credit history. Most likely, if a company is advertising that they can do this, it is a scam. So proceed with caution. There are ways that you can work on improving your credit score. It does take a great deal of effort on your part, but you can do it.
If you do not have the time and are interested in getting help from a credit repair company, take some precautions. Check out the company first to see if there are any complaints listed at the Attorney Generals office, Better Business Bureau or Consumer Rights Agency. If there are complaints, then chances are this company is not reputable.
Be on alert for grandiose statements like they can erase your bad credit history, or improve your credit score overnight. This is illegal so you most certainly do not want to request their help.
The credit repair company should only charge you a small amount of money. If they ask for a lot of money up front, beware! Sure, they may offer guarantees, but they may disappear and you will never be able to find them to obtain that guarantee!
Keep in mind, that there are honorable agencies and clinics that will help you. Many of them offer advice and free services. However, there have been many fraudulent companies and most states have very strict laws now about operating practices. There are now agencies in place that are investigating these credit repair companies to assure that they are advertising what their actual services are and are truly legitimate.
Take the time to investigate a company thoroughly before paying them to assure that they are a legitimate, reputable company. Make sure you know what your rights are.
