Credit scores can seem like a very complicated topic for most people but, it doesn’t have to be. Deep down there are a few core fundamental principles that will help you better understand your credit, lets go through them.
1. Credit Report
Your credit report is a history of how well you repay debt. It includes your payment history on debt such as mortgages, auto loans, credit cards, personal loans, student loans, as well as collection accounts from third party debt collectors, inquiries and public record information such as any bankruptcies, Tax Liens, or Judgments. You credit report also contains your personal informations such as your names and aliases, addresses, date of birth, phone numbers, and employers.
2. Credit Bureaus
Your credit history is maintained by companies often referred to as credit bureaus or credit reporting agencies. These companies gather and collect information about you and your payment history from creditors, debtors, and third party data furnishers. The 3 largest credit bureaus are Experian, Equifax, and TransUnion.
3. Credit Score
Credit scores are calculated by aggregating the information from your credit reports and running that info through a mathematical formula designed to score your report into a simple 3 digit number.
4. Different Credit Scores
Not only are there different scores for each of the 3 credit bureaus, there are several different credit scoring models which are used to get credit scores themselves. For Example, the most commonly used credit scoring model is the FICO score but, most people don’t know that there are 49 different scoring models of the FICO score. There are also a plethora of other models used to generate scores like the TransRisk Score, Vantage Score, Plus Score, ScorePower Score, etc…. Each of these scoring models uses a different scoring range and mathematical formula to aggregate a score. This is why credit scores differ from place to place.
5. Credit Score Factors
According to FICO (Fair Isaac Company), the developers of the lending industry’s most widely used credit score, the FICO score, there are 5 main factors which are used to calculate your credit score. Those factors, in order of importance are; payment history, credit utilization, account age, mix of credit and inquiries.
6. Free Credit Reports
You may obtain a free copy of your credit reports once a year from the government mandated website www.annualcreditreport.com.
You may also obtain a free credit report from some free credit monitoring services like;
www.creditkarma.com (FREE TransUnion and Equifax Credit Reports)
www.quizzle.com (FREE TransUnion Credit Report)
www.freecreditreport.com (FREE Experian Credit Report)
7. Free Credit Scores
There is no law currently requiring the credit bureaus to provide you with a free credit score but, there are a few websites out there providing consumers with a free credit score. Please note that none of these scores are FICO scores and they will likely differ from your actual FICO score.
www.creditkarma.com (FREE TransUnion and Equifax VantageScore 3.0 scores)
www.quizzle.com (FREE TransUnion VantageScore 3.0 score)
www.creditsesame.com (FREE TransUnion VantageScore 3.0 score)
www.credit.com (FREE Experian VantageScore 3.0 score)
8. Checking Your Own Credit Wont Hurt Your Scores
There are 2 different types on inquiries which report on your credit report, hard inquiries and soft inquiries. When you apply for credit (mortgage, auto loan, credit card, etc…) a hard inquiry reports on your credit report and lowers your score. Checking your credit through any of the sites we listed above incurs a soft inquiry, which means that it is just you checking up on your own credit. Soft inquiries do not lower your credit scores so check your own credit through soft inquiries as often as you like.
9. Negative Information Can Report For…
According to the Fair Credit Reporting Act (FCRA), derogatory information can report for up to 7 years from the date of the first key delinquency, with a few exceptions. Chapter 7 Bankruptcy may report for up to 10 years and a Federal Tax Lien may report indefinitely or 7 years from the date it is paid. This means that if you opened an account is 2010 and became delinquent in 2015, the account may continue to report derogatory info until 2022, 7 years from the date that the account became delinquent (2015), not from the date the account was opened (2010).
10. A Low Credit Score Can Ruin Your Life
A low score means that you will be stuck paying higher interest rates on everything form a mortgage, to an auto loan, to a credit card, even your insurance rates are influenced by your credit scores. It has even become common practice for employers to check credit reports to determine whether an applicant is financial responsible. Consumers with bad credit are deemed higher risk and more likely to commit fraud or steal.
11. The Good News
Bad credit isn’t permanent. CreditFirm.Net has helped thousands of consumers just like you remove negative information from their credit reports and improve their credit scores. Since 1997, we have helped our clients purchase homes, get low interest auto loans, and save millions of dollars by improving their credit scores. Will you be our next success story?
Why Choose CreditFirm.net?
Assurance. Our Credit Repair process was developed by experienced attorneys.
Speed. Documents are typically processed and sent out for investigation within 3-5 days.
Support. Award winning customer service guarantees your satisfaction.
by: Michael Creditfirm.
Many Americans are still grinding through life with Bad Credit. In fact, over 110 million Americans (50% of the population with credit files) have had their credit file negatively affected by the recent economic crisis according to Business Wire. So how do you know which Credit Repair company to choose when looking for help in improving your credit report?
Going through life living with bad credit, many Americans struggle repaying high interest loans and making minimum monthly payments on their credit cards, barely covering their interest charges which can be as high as 29.99%. Paying more money to rent then they would to own because they don’t qualify for a mortgage based on their credit history.
Good credit can save you thousands of dollars by allowing you to qualify for low interest rate mortgages, auto loans, credit cards, and more. Unfortunately, most people choose to live with bad credit rather than be proactive and make a change to improve their credit.
Choose to be proactive and fix your bad credit, it’s time to get serious about credit repair. CreditFirm.net has helped thousands of clients qualify for low interest rate mortgages, auto loans, credit cards, and more, by improving their credit scores. Let CreditFirm.net guide you down the journey toward fixing your bad credit. We’re not your typical credit repair service. With 15 years of credit repair experience, we have helped thousands of clients increase credit scores and improve credit reports. Results and customer satisfaction are of the utmost importance for us, that is why we are always eager to help and answer any questions which you may have.
CreditFirm.net will never ask you to pay for any credit repair services which we have yet to complete. This is why we offer a FREE Credit Consultation with a qualified credit consultant who will:
Help you obtain your FREE credit report and go over it
- Explain what is inside your credit report. (both positive and negative)
Explain what a credit score is and how it is calculated
- Explaining the different types of credit scores and the metrics used in calculating them.
Create a Custom Action Plan
- A guide for you to follow which will outline the necessary steps in order to improve your credit score.
- Different Clients have different goals and no 2 situations are exactly alike. This is why we treat every case on an individual level. We are not a credit repair factory like many of our competitors, all of our work is custom.
One service level
- Unlike our competitors, we don’t confuse you with different levels of service offering different credit repair techniques. We have one service level, we utilize every tool we have and we only have one speed, FAST. We do everything we can, as fast as we can, to help you improve your credit and reach your goals.
- We follow the Credit Repair Organization Act (CROA) to the tee. We do not offer guarantees because the CROA prohibits such practices, but we do promise first-rate service, an attention to detail, and our dedication to improving your credit report and score.
We want you to be confident in your credit repair decision and let our results speak for themselves. This is why our clients enroll in our credit repair service for distinctive monthly servicing periods and pay only for the credit repair services which have already been performed and delivered.
by: Michael Creditfirm.
One Free Credit Report per Year
The Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies (Equifax, Experian, and TransUnion) to provide you with a free copy of your credit report, at your request, once every 12 months. The three credit bureaus have set up one central website, toll-free telephone number, and mailing address through which you can order your free credit report. The Federal Trade Commission (FTC), the nation’s consumer protection agency, wants you to know that, if you want to order your free annual credit report online, you may do so via one of the following
1. visit: www.annualcreditreport.com.
2. call: 1-877-322-8228
3. Print out the Free Credit Report Request Form, fill it out, and mail the form along with a copy of your ID, Social security card, and current Utility bill to the following address:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Credit Report Repair
If you have any questions about your credit report or would like to find out how Credit Firm can help you improve your credit history and increase your credit score please contact us.