You are able to remove negative items that are obsolete, inaccurate, false, misleading and unverifiable from your credit reports. Including the following:
BANKRUPTCIES
CHARGE OFFS
COLLECTIONS
FORECLOSURES
SETTLEMENTS
JUDGEMENTS
LIENS
LATE PAYMENTS
REPOSSESSIONS
IDENTITY THEFT/FRAUD
We guide you every step of the way until you complete the process. Don't wait.
In the United States, a credit score is a three-digit credit rating that represents an estimate of an individual's financial creditworthiness as calculated by a statistical model. A credit score attempts to compute the risk that a prospective borrower will fail to repay a loan or other credit commitment satisfactorily over a fixed time frame of time. A credit score is normally by virtue of the data in an individual's credit report. Lenders such as banks and credit card companies use credit scores to manage the risk placed by lending money to consumers. Examples of such uses include determining who qualifies for a loan, assigning an interest rate, assigning credit limits, and managing accounts that are already open. The use of credit or identity scoring before authorizing access or granting credit is an implementation of a trusted system.
In the United States, a credit score is a three-digit credit rating that represents an estimate of an individual's financial creditworthiness as calculated by a statistical model. A credit score attempts to compute the risk that a prospective borrower will fail to repay a loan or other credit commitment satisfactorily over a fixed time frame of time. A credit score is normally by virtue of the data in an individual's credit report. Lenders such as banks and credit card companies use credit scores to manage the risk placed by lending money to consumers. Examples of such uses include determining who qualifies for a loan, assigning an interest rate, assigning credit limits, and managing accounts that are already open. The use of credit or identity scoring before authorizing access or granting credit is an implementation of a trusted system.
FICO is an acronym for Fair Isaac Corporation (traded publicly under the symbol FIC) and often refers to credit scores in the United States that are calculated using mathematical formula developed by this company.
This score is one of the most important factors in obtaining credit in the United States. Lending institutions and banks that use scores as a factor in their lending decisions, may have criteria were scores below certain number may result in denial of credit, or in credit being offered at a higher rate of interest.
The three major credit reporting agencies in the United States, which are Equifax, Experian and Trans Union calculate their own FICO scores. These scores go by different trademarked names as well as many different versions of the scoring process. For example Beacon, Beacon 96 and the Pinnacle are all available only from Equifax; Empirica, Empirica Auto 95, Precision Score and Precision 03 at Trans Union, and Fair Isaac Risk Score at Experian.
These are all different versions, but were all still developed for the agencies by Fair Isaac. These versions differ and are periodically updated to reflect current consumer repayment behavior. The NextGen Scores are the most recent scores, but creditors vary in which version they prefer to use.
These scoring processes use a multiple scorecard design. Each version uses 10 or more individual scorecards, and an individual is typically compared with others in a similar situation. For example: a borrower with two 30 day late payments may be scored against a population with some minor delinquencies. An individual is then graded according to what variables seem to indicate a repayment risk in that group. This feature may cause a borrower with delinquencies to score in the same range as a borrower without delinquencies.
It is worth mentioning that each of these credit reporting agencies also have developed their own separate proprietary versions of a credit score intended to compete with Fair Isaac's score. Although not as widely used, these scores are usually less expensive than the FICO score and, in some situations, may predict the risk a little differently for a prospective borrower. Sometimes the cost savings of a non-FICO score are tempting to some banks and credit card companies, who need an accurate risk assessment on millions of accounts every year. Only time will tell if these alternative scores will displace Fair Isaac from its dominant position in the U.S. market for credit scores.
Nearly all large banks also build and use their own proprietary statistical models for credit scoring purposes, often in conjunction with the FICO score or other outside scores.
The statistical models that generate credit scores are subject to federal regulations. The Federal Reserve Board's Regulation B, which implements the Equal Credit Opportunity Act, expressly prohibits a credit scoring model from considering any prohibited basis such as race, color, religion, national origin, sex, or marital status.
Regulation B also stipulates that credit scoring models must be empirically derived and statistically sound. Furthermore, if an adverse action is taken as a result of the credit score then specific reasons for the denial must be provided to the individual. A statement that the individual "Your score was not high enough" is insufficient; so specific reasons must be given.
There are many generally accepted algorithms for figuring the primary contributing factors to a low credit score. Many times one or more of these algorithms is typically used to give a list of reasons when a loan applicant has been declined for credit, in order to satisfy the Regulation B requirement that specific reasons are disclosed. Sometimes consumers may feel these adverse action reasons are somewhat disingenuous, as the only determining factor for credit denials is a numeric score, but the reasons are summed up only for the consumer.
As mentioned above, each credit bureau also has one or more of its own generic credit scores, available both to consumers on their websites and to lenders. For ease of use, these scores tend to be mathematically scaled so that they fall in the same general range as the FICO score. These scores are used by some businesses to assess creditworthiness, otherwise they would not be offered, however the FICO score remains the dominant score in use today.
We have over the years gained an extensive experience with the credit reporting system and the methods involved in correcting many common types of errors encountered in credit files. The information contained on with web site and documents does not contain legal advice as we are a Financial Consulting Company and not attorneys or lawyers. If you feel the necessity to better understand the laws involved in credit reporting, please confer with a lawyer or attorney. What we are offering is a step by step approach which has been effective in the past and successfully assisted many different people to amend mistakes in their credit reporting files.
