Equifax Joins TransUnion With New Credit Scoring Model

When FICO introduced the new FICO 08 credit score in January, TransUnion jumped on board, but Equifax and Experian did not.

Now Equifax will also make this newest version of the FICO score available to lenders and businesses. Equifax calls the new score "Beacon 09" and joins FICO in saying that it is the most accurate scoring model yet for predicting a consumer's credit risk.

Some things will remain the same. For instance, the scores will still range from 300 to 850 and consumers will still have to meet minimum criteria to even have a credit score.

In order to generate a score, a consumer must have an account that has been open for six months or more, and that has been updated within the past six months. Since many small companies such as utilities don't report to the credit bureaus, consumers need to have some kind of credit card, car loan, mortgage, or other account that does report.

In addition, your credit report must not indicate the word "deceased." This can be a problem for a spouse who has held all accounts jointly.

Good news for some consumers is that under the new scoring model, a one-time mistake such as late payment won't count so heavily. In fact, consumers whose scores have dropped due to such an entry will probably see their scores go up.

The bad news is that the new model will put more weight on the total debt load a consumer carries. It will become more important than ever to pay down debts and maintain a large margin of unused credit.

"Piggybacking" will once again carry some weight, because of new technology that will help prevent its abuse. This practice, in which an authorized user could "piggyback" on someone else's good credit rating, led to abuses in the past.

The old FICO scoring model will still be available and will be used by companies who choose not to switch over. Predictions are that most users will be smaller lenders because the change will be complicated for large lenders.

Experian is currently in a lawsuit with FICO and there is no word on when or if it will adopt the new model. Since Experian severed ties with myfico.com, Experian's FICO scores have not been available directly to consumers but could still be accessed by banks and other lenders.

Author: Mike Clover
CreditScoreQuick.com your resource for free credit reports, credit cards, loans, and ground breaking credit news

Get all 3 Credit Scores Before the February 14 Deadline!

Unless an agreement is reached between Fair Isaac and Experian before February 14, you as a consumer will no longer be able to access your Experian FICO credit score.

On January 15, Experian notified Fair Isaac of the intention to end their 6-year partnership with myFICO.com. They will continue to sell FICO scores to lenders and other businesses, but consumers will not be able to access the Experian score through myFICO.com or any other source.

Experian credit reports will still be available to consumers, but without the FICO scores.

Equifax and TransUnion will continue to make FICO scores available to consumers through myFICO.com and various on line websites, including (http://www.creditscorequick.com/ and http://www.freecreditscorequick.com/).

Given the animosity generated by an October 2006 lawsuit filed by Fair Isaac against the three credit reporting bureaus, this move is not entirely unexpected. In that lawsuit, Fair Isaac alleged that Equifax Inc., Experian Information Solutions Inc., TransUnion LLC and VantageScore Solutions, LLC had violated anti-trust laws and engaged in unfair competitive practices when they launched the VantageScore credit scoring model in March 2006.

In mid-2008 Fair Isaac Corp. agreed to dismiss Equifax Inc. as a defendant in that lawsuit, stating that Equifax Inc. had stopped the unfair practices and that the two companies were working together to release the new FICO 08 model for Equifax customers.

The new model is similar to the current model, but with enough significant differences that consumers will not be comparing "apples to apples" when looking at their FICO scores from both Equifax and TransUnion.

The outlook for consumers is not good. With America experiencing the worst economic climate since the Great Depression, consumers need more access to their credit information, not less. But unless Experian and Fair Isaac come to an agreement before February 14, consumers will be left in a state of confusion.

TransUnion will be offering FICO scores under the old model; Equifax will be providing scores using the new model; and Experian scores will be available only to lenders and other business entities.

This is the second time that Experian has threatened to terminate the partnership, so hopefully the two companies will once again be able to reach agreement and continue working together.

The problems may work out to everyone's satisfaction. But meanwhile, the best course of action is to get your 3 free credit reports - with all 3 scores - today.

CreditScoreQuick.com your resource for free credit reports, credit cards, loans, and free credit repair advice.

Renters: Prepare for a Move by Raising Your FICO Scores

Many tenants assume that their landlord is rich, but that's not always the case. In fact, that's often not the case.

Owning real estate has long been considered a way to build a nest egg, so many would-be real estate tycoons start with one single family home and try to add more houses and apartment buildings as time goes by. If they've purchased for the right price and can keep the units rented for more than the monthly payment, they see a positive cash flow and begin building a bank account.

But, if times get tough and they're unable to keep their properties fully rented, or if repair costs escalate, those properties can become a liability instead of an asset. If other financial disaster strikes, they may even begin using the rent money for the mortgage payment on their own homes.

Since landlords and tenants don't usually discuss the landlord's financial situation, tenants can be caught unaware when the house or the apartment they occupy suddenly goes into foreclosure. Remember that only owner-occupied homes are eligible for relief under the Streamlined Modification Program, so foreclosure of rental properties is a very real possibility.

To address this problem, Fannie Mae announced that it would introduce a new policy in 2009 to give aid to renters. While the rule of thumb used to be that all REO properties remained vacant, now people living in foreclosed properties will have the opportunity to sign a new lease with Fannie Mae while the home is marketed for sale. They may also be given money for moving expenses.

Freddie Mac is working on a similar plan.

Of course, not all homes have a mortgage with Freddie or Fannie, and a tenant wouldn't know if it did or not until they were notified after foreclosure had begun. So, if you have cause to believe the home you rent might be going into foreclosure, investigate the laws in your state to learn how long you will be allowed to stay after a filing.

Since foreclosure actions, judgments and bankruptcy filings are all public record, you can also do some investigation to see if any trouble is brewing. Any action related to your landlord should be listed in district court records or at the County Recorder's Office. If you've been dealing through a rental agent and don't even know who your actual landlord is, you can find out through cross-referencing from the address and legal description.

Even renters need good credit scores now, so be prepared for a possible move with the highest possible FICO scores. Get your credit report - with scores - and see how you stand today. Then, unless you're already hovering in the mid 700's, begin taking steps to raise that score.

CreditScoreQuick.com your resource for free credit reports, credit cards, loans, and free credit repair advice.

Being a Conservative will Harm Your Credit Score

No, I’m not talking about your political persuasion. I’m talking about your spending habits and how they’ll affect your credit score.

If you’re very conservative, you’re very careful about how you spend – you may even pride yourself on waiting until you have the cash to make a major purchase. Thus, you have no credit cards, no car loan, and no account at the appliance or furniture store.

Unless you’ve inherited real estate or bring home a phenomenal income, it probably means you don’t own a home – and at some point in the future you will need to apply for credit.

You might walk into your local mortgage company office feeling pretty good about yourself and feeling confident that you’ll get the mortgage you want at the lowest possible interest rate – because you’re a responsible person and have no debt.

Nothing could be farther from the truth!

Strange as it may seem, lenders want you to have debt. They want to see that you have a history of paying bills on time, and if you have no bills, you have no history.

In the past, we were able to help people get mortgage loans by showing the lender all their receipts for rent, phone bills, power bills, etc. But in today’s “running scared” mortgage market, that might not work.

So what should you do? First, get your free credit report and see what your FICO scores actually are. It’s always best to know where you’re starting from if you intend to go somewhere.

Next, begin building your credit. You may have to begin with a secured credit card, but since you have no adverse history, you may be able to obtain a card with a low credit limit from a mainstream source.

Once you have the card, begin using it to make small purchase. Or use it for a few large purchases – such as gasoline! When the bill arrives, pay it in full and continue charging those purchases. In a few months this activity will show up on your credit report.

Then, get another card and do the same thing – but be careful not to exceed 30% of your available credit on any one card during any one payment period. The amount you owe is reported as the amount on your monthly statement, so use the statement, not the calendar, to determine how much you can spend in a given month.

After you have a few month’s history with your credit card, ask to have your limit increased. Not because you want to use it, but because your credit report will then show more available credit that you aren’t using.
Check your credit report again regularly – and have fun watching those FICO scores as they go up and up!

Marte Cliff is a former Real Estate Broker and now a Real Estate Copywriter. Visit her at www.marte-cliff.com

The Housing Crisis Makes High Credit Scores Imperative

If your credit score is sagging, the sad truth is you probably won’t get a mortgage loan this year, or in the near future.

Lenders are running scared these days, facing huge losses as one in 171 households fell into foreclosure during the second quarter of this year. That’s up 121% from last year – a whopping 739,714 homes in all. And that’s just for the period from April through June of 2008.

And, while the President just signed a bill authorizing the Treasury department to rescue Fannie Mae and Freddie Mac, the original lenders will be taking a hit. The new legislation is aimed at refinancing loans that are in trouble, and giving Fannie Mae and Freddie Mac Federal insurance against future losses, but will require the original lenders to reduce the principal on those loans.

The outcome of this legislation remains to be seen, but taxpayers have a right to be outraged. This law retains the hybrid nature of the mortgage finance giants, which are private companies with publicly traded stock, but which now have an explicit guarantee of help from the government — an arrangement that critics say privatizes the profits but socializes the risk and any losses.

Many believe that the current crisis is the result of aggressive loan programs. When lenders qualified new homeowners based on deceptively low introductory rates, it was a recipe for failure. Some ethical mortgage lenders refused to take part, while others counted their commission checks and laughed all the way to the bank.

As those rates jumped from 1.99% - or even 0.99% - to 6 or 7or even 8 percent, payments doubled, or even tripled. Meanwhile, wages did not.

Add in the current fuel prices, and it’s no wonder that sub-prime borrowers are losing their homes – and no wonder that lenders have suddenly realized that giving credit to people who can’t pay isn’t such a good idea.

What all this means to you – aside from the fact that the national debt level has just been increased by $800 Billion – is that your credit score is more important than ever. If you plan to get a mortgage loan any time in the near future, your best plan is start working to raise that FICO score to the highest possible level.

Step one is to get your free credit report, right here at creditscorequick.com. Read it carefully so you know your starting point, and then get to work on making it as good as it can be.


Author:Mike Clover
CreditScoreQuick.com is your resource for free credit score reports, fico scores, loans, credit cards, insurance , identity theft protection and credit repair advice.

Fair Isaac’s FICO score 08 will restore Authorized user accounts.

This is great news, due to the fraud in the credit repair industry; credit repair companies were buying authorized user accounts to boost their client’s fico scores during the credit repair process. Fair Isaac found out and put an end to allowing authorized user accounts improve your over all credit score. The problem with this move was there are over 50 million legitimate authorized credit card users. With the new FICO 08 this could potentially bring the fico scores down for those legitimate account holders.

Scientists with FICO released news today that they have discovered a way to restore authorized user accounts to the calculation of FICO 08 credit scores while materially reducing the impact to the credit score tampering.

This technology breakthrough resolves an industry problem that has perplexed lenders and concerned banks. Fair Isaac states that they have developed technology that will reduce any impact on the FICO 08 score from intentional tampering, while allowing the scores of spouses and other genuine authorized users to benefit from their shared credit history.

This new technology rollout should be done within a couple of weeks. Fair Isaac stated they are working with the credit bureaus closely to bring FICO score 08 to the public soon.

This is good news; because the way it was would affect a lot of people. Potentially with the older FICO 08, you would be penalized for being an authorized user on a credit card. With this new roll out, it will help those that legitimately are authorized users.

Author:Mike Clover
CreditScoreQuick.com is your resource for free credit score reports, fico scores, loans, credit cards, insurance , identity theft protection and credit repair advice.

Who looks at your credit score?

Everyone knows that mortgage lenders and car dealerships / lenders look at your credit score. It’s their way of deciding if they should lend you money, and if so, at what rate and terms.

The better your score, the lower the interest rate and the longer the repayment period.

But who else is looking?

Telephone companies and satellite Television providers are two of them. And why? Because they’re providing a monthly service and want to know if they can count on you to pay that monthly bill. I know - they can simply discontinue service if you don’t pay up, but the paperwork costs them money and they’d rather not deal with it. In addition, some of these companies invest in free equipment at the outset of your service, counting on your monthly payments to return that investment.

If you simply stop paying after just a few months, they’re out the cost of that equipment as well as the cost of processing paperwork.

Insurance companies are next. Using statistics gathered over the years, insurance companies have come to believe that customers with high credit scores are not only more likely to pay their insurance premiums in a timely manner, they’re less likely to file claims.

Is this because those people with high credit scores are more responsible in all facets of their daily lives? Or could they be fostering a belief that people with poor credit scores are more apt to file bogus claims? I don’t know the answer to that, but since so many people do file insurance claims that have no bearing on the truth, it could be that they have some statistical information to indicate that they are.

Finally, there are your future employers. With the high cost of training employees, employers want to hire correctly and avoid turnover. So they’re looking at things they never did before.

For instance, you’ve probably read stories about prospective employers Googling applicants’ names to learn more personal information about them. Many’s the foolhardy person who has lost out on a position of responsibility because a prospective employer either saw a foolish video on U-tube or read blog posts indicating that the person they were considering is a bad choice. In other cases, past employers have refused to give referrals because of “bad-mouthing” they received on an employee’s blog.

It’s no wonder that they check your credit scores to determine your levels of personal responsibility. Managing your money well really is a sign of responsible behavior – and that’s a trait that every employer wants to see in every employee.

Order your free credit score today – and find out what everyone else knows about you!


Author:Mike CloverCreditScoreQuick.com is your resource for free credit score reports, fico scores, loans, credit cards, insurance , identity theft protection and credit repair advice.

My Credit Scores have dropped due to new credit cards-Why?

The venture to build a good credit score report is sometimes aggravating and exhausting. If you have never had credit or let all your credit go to collection, the first step on building your credit scores is building or rebuilding your credit report. Anyone that understands this process will tell you your first step is to get some secured credit cards. There are some matters you need to know that will drop your credit score though. Here is what you need to know.

Secured Credit Cards
This type of credit card is a great way to establish credit regardless of your situation. Reason behind the success of this card is because it reports to the credit bureaus as good revolving credit. This card does require a deposit of your own money into the banks account, typically around $300. The good news is with a little payment history you are on your way to save because you have higher credit scores now. It’s a small investment to save lots of money down the road.

Too much credit too quick
If you apply for too many credit cards to quick, your credit score will drop. The credit scoring models look at this as high risk. I would just apply for two credit cards only, that is all your really need.

Credit History
When your credit scores are calculated the length of credit history is a factor as well. If you just applied for credit cards your credit scores could drop, but they will eventually go up. There are all kinds of factors in the credit scoring process, and if its new credit it will take some time to see improvement in your credit scores. But remember this is the quickest way to increase your score though.


Author:Mike Clover
CreditScoreQuick.com is your resource for free credit score reports, fico scores, loans, credit cards, insurance , identity theft protection and credit repair advice.

Two credit scores only Q & A

Q:
Hi Mike,
I have some questions for you about my credit scores. I recently pulled my credit report and noticed I only had two credit scores. One of the credit bureaus said n/a. I currently don’t have any credit cards or any outstanding loans. Most of everything I had went to collections years ago. I am just curious why the other two credit bureaus have credit scores and Equifax does not. Thanks for your help

Susie Jules

A:
Hi Susie,
There are several reasons why you may not have a credit score with Equifax. Based on what you told me it appears that you don’t have any current credit revolving on your credit report. You are stilled getting scored with the other two credit bureaus because of old credit. Some of the creditors may have stopped reporting to Equifax due to no activity. If you want credit scores with all three credit agencies I would recommend opening some new credit cards. Once you have a bout 6 months of good payment history you should have credit scores with each credit bureau. To have better credit scores it would not hurt to have a mix of credit, like auto loans, mortgage loans, and credit cards. All of this is part of the credit scoring process.

Mike Clover
CreditScoreQuick.com

Author:Mike Clover
CreditScoreQuick.com is your resource for free credit score reports, fico scores, loans, credit cards, insurance , identity theft protection and credit repair advice.

Free Credit Reports Without Credit Scores are Only Worth What You Paid

You’ll see plenty of companies on line, in the newspapers, on the radio, and on TV who are shouting out offers for their Free Credit Reports. And they are telling the truth – they’ll give you a credit report.

The trouble is, it won’t be worth the paper it’s printed on, because it won’t contain the number you need most to see: your credit score.

The folks who think they need to know all about your financial life will definitely look at the history portrayed in your credit report, but they also want your score. They don’t have the time or the expertise to weigh each segment of your financial history, so they count on the 3 major credit bureaus to tell them about your credit worthiness.

After all, when Bill Fair and Earl Isaac created the FICO scoring system, they’d been studying the statistics for years – figuring out what financial traits marked the difference between a good credit risk and a poor one. No system can predict the future with 100% accuracy, but their system predicts it well enough to cause almost everyone to rely on credit scores generated from it.

Who wants to know about your money management history? Seems like almost everyone:
• Mortgage companies
• Banks
• Car loan companies
• Credit Card Companies
• Credit Unions
• Department stores
• Potential employers
• Potential landlords
• Insurance Companies
• Cell phone companies
• Satellite Television providers
• And even your soon-to-be spouse!

Our finances used to be a private matter, and now almost everyone knows your business!

When you get your free “scoreless” credit report you’ll be able to see what has been reported about you, and you’ll be able to check for mistakes and signs of identity theft, but you still won’t know how a potential creditor views you. And you won’t know if you need to begin taking steps to rebuild poor credit.

But there’s a second reason why you need to know your own score. Sad to say, some potential creditors will ask if you know your score – and use that lack of knowledge against you if you don’t.

If you have a good score and don’t know it, those creditors can fool you into thinking your score is poor, giving them a reason to charge you higher interest. They make millions every year from people who simply don’t realize that they qualify for lower rates.

The good news is, when you request your free credit score reports from Credit Score Quick.com, you’ll get all you need – including the scores you need to know.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

FICO Demystified

Your lender rattles off the term as if everyone knew exactly what FICO meant. But most of us don’t even know what the letters stand for.
The first part is simple: The Fair Isaac Corporation. Sounds mysterious, doesn’t it? What the heck is a Fair Isaac? Nothing. It just happens to be the names of the men who started the company.
In 1956, engineer Bill fair and Mathematician Earl Isaac joined forces to create what was originally a consulting and decision management service. Then in 1981 they devised a system for scoring the amount of risk associated with making certain loans and investments, and the FICO score was born.
The score is generated by statistically analyzing an individual’s credit history. Among other things, this scoring system takes into account:
· Bill paying history
· Debt to income ratio
· Debt to available credit ratio
· Length of time a person has had and used credit
· Existence of bank accounts
· Number of recent credit inquiries
Each factor in your financial makeup is given a “weight” toward your final score, which is a calculated risk factor, based on the past performance of others whose financial history is similar to yours. Through this score, lenders are shown the statistical likelihood that you will pay your debts. Then they determine under what conditions and at what rate of interest they will lend to you.
If your score is 720 or higher, you’ll have an easy time getting a loan. If your score is under 600, you’ll be considered a poor risk and if you can get a loan, it will be at a higher rate of interest.
FICO has become a giant in the American world of finance. In addition to providing credit scoring, FICO provides consulting and management services to over 200 international retailers, 99 of the top 100 U.S. banks, and over 100 international telecommunications companies.
Headquartered in Minneapolis, Minnesota, FICO has offices on 5 continents, employs over 3,500 people, and turns a revenue of over $800 Million every year. FICO is not associated with the government, but like Equifax, Experian, and TransUnion, is a publicly traded company.
You should always be aware of your credit score, so that you can make adjustments and take steps to keep it high. You can buy the report directly from FICO, or you can take advantage of a free credit score report from one of many online providers.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Low Credit Score mortgage loans.

With all the drama in the lending industry, you can still get a mortgage with low credit scores. Yes, credit scores are a big determining factor in whether you will get approved for a mortgage, but your credit scores don’t have to be all that great. The mortgage loan I am talking about is a FHA loan. FHA loans are loans that are insured by the government. For years FHA did not have a credit score requirement, and until now they require a minimum of a 300 credit score. This may sound crazy but that is the lowest credit score they will finance with all the new mortgage insurance guidelines. Nether less, typically when you have credit scores that low you have too many recent issues to get a lender to approve you anyways.

There is a market on Wall Street called the secondary market which the buying of mortgage paper takes place. Typically this paper is sold in bulk called mortgage backed securities. The investors that buy this paper may have their own internal restrictions before buying loans. These restrictions might be far stricter than what FHA requires to insure a FHA mortgage loan.

Currently in today’s market there is a minimum credit score requirement of 580. There is also changes going on within banks where they are requiring a middle credit score of 620. The reason for this requirement is because people who have bought homes below that credit score threshold have a history of foreclosing on their homes. So the investors tighten up on what type of FHA mortgage paper they will buy.

Regardless of whether the credit score requirement is 580 or 620, those types of credit scores are still considered low and a high credit risk according the Fair Isaac’s scoring model. So yes you can still currently get a mortgage down to a middle credit score of 580. You will pay higher interest rates with that score, but you will get a 30 yr fixed mortgage.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

I only have one Credit Score on my Credit Report Q & A

Q:
Hi mike,
I have a question about why I only have one credit scores. I recently pulled a copy of my free credit score report through you site, and only got one score back from Equifax. I thought you got three credit scores. I don’t have any credit cards and any outstanding loans currently. I do have past history but it has been years. I decided a while back to pay cash for everything. I thought you would have credit scores from past history.

Angela Pickerall


A:
Hi Angela,
We see this quite often. There could be several situations going on here. Without actually seeing your credit report I will gives some scenarios. The first problem I see is you don’t have any new or existing credit reporting. So the current credit scoring models don’t have anything to score you on. The current FICO scoring model likes to see the following to calculate your credit scores with each bureau.

• Payment History
• Amounts owed
• Length of credit history
• New credit
• Types of credit used

All of this goes into factoring your credit score with each credit bureau. Its looks like you are lacking all of this, and this is why you don’t have 3 credit scores. Yes one might be scoring you because a creditor is reporting to that bureau only. This is the second scenario. Some creditors only have contracts with certain credit bureaus. They may not have contracts to report information with all 3.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

What is a good credit score?

You paid for your credit report on-line with your credit scores. You print it out, and the question is now what? Do you even know how to read or decipher what is on there? You might be asking yourself what is a good credit score, and do you have good enough credit to get the best terms and rates on any loan.

Every lender has its own criteria for lending someone money. Every insurance company, employer, credit card companies, and bank sets its own credit report and credit score standard. So what is a considered a good credit score by most standards.

Fair Isaac’s credit score model is like a standard amongst other credit score models. What does this mean? This means that there are other credit score models used to determine your risk, but most of them designed there credit scoring model after the FICO score model. FICO scores range between 300 (very bad) to 850 (very good).

About three years ago all the credit bureaus got together and came up with a credit scoring model called “Vantage Score.” These credit scores range between 501 to 990. But when it comes to credit scores the most widely used is the FICO score model.

As you can see there is a wide range of credit scores. You might be asking yourself what is considered good still. Well a good rule of thumb is to have at least a 680 credit score. There are 3 credit bureaus and each report there own credit score. Equifax, TransUnion and Experian are the three bureaus. Les assume your Equifax credit score is 720, Experian is 660 and TransUnion is 680, your middle credit score is what most banks use. So you credit score used is 680. Usually with this type of credit score you can get approved for just about any loan. That does not mean you will get the best rates and terms though. If you are looking to get the best rate and terms you will need at least a 720 plus middle FICO score.

All loans are based on risk, and the credit scoring process is a mathematical solution to determine whether you will pay back the creditor or not. The lower your middle credit score the higher risk you are to all creditors concerned.

Remember some creditors have there own internal credit scoring process. So your credit socre will not be the same with everyone. My advice would be to always pay your bills on time and keep your debt low. These are the two biggest factors in the credit scoring process.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Don’t be Led Astray by these Credit Scoring Myths

Wrong information can be just as damaging as no information, and there’s a whole host of it surrounding the lending industry. Much of it involves credit scores.

Sadly, because many Mortgage lenders and bank representatives never take the time to actually learn about credit scoring, much of the bad information comes directly from sources you should be able to trust.

For instance, some will tell you that you should close open accounts. No! You should not. You definitely shouldn’t open any new accounts or even apply for new accounts when you’re trying to build your credit score, but if you close accounts you now have, you could actually lower your score.

This is because your debt load is measured against the credit you have available to you. When you close an account, that credit is not available, so your debt ratio goes up, making your account balances seem higher.

For instance, if you have 4 credit cards, each with a limit of $5,000, and you have balances of $3,000 and $4,500 on 2 of the cards, and zero balance on the other two, you are using only $7,500 of $20,000 available, or 37.5%. If you close the two unused accounts, you’re now using $7,500 of $10,000 – or 75% of your available credit.

The truth: If you can pay down your debt, definitely do it. But once the accounts are paid, leave them open.

You’ve also heard that inquiries on your credit lower your score. This is true if the inquiries come from specific retailers, but not if you check your own score. Mass pre-approval inquiries are also ignored when your credit is calculated. Retailer inquiries lower your score by only about 5 points, so don’t be careless, but don’t panic if there’s been an inquiry.

A good rule of thumb when you’re working on getting a Mortgage loan is to not shop for cars, furniture, appliances, etc. until your loan closes. The credit inquiries could damage your score just enough to hurt you – and even paying cash isn’t a good idea. Keep your bank balances as high as possible until there’s no chance that the lender will make a last minute check.

Next is the use of credit counseling. At one time this did affect your score, but a study conducted 3 years ago showed that people using credit counseling did not default on their debts any more than other people. The most current FICO formula ignores credit counseling all together.

BUT – credit counseling can still be risky. Sometimes counseling agencies make payments late or pay lesser amounts – and these mistakes will affect your score.

Author: Marte Cliff
CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

How to negotiate credit report collections.

A collection on your credit report is a bad thing period. If you have let some debt go due to the current economic downturn, join the rest of America. Even though it’s tough on your fico scores, there is a solution to fix the issue at hand. Things come up in life that is beyond our control. The FICO score model knows this, so as long as you don’t make a habit of letting debt go to collections you can get back on track fairly quickly. In this article I will discuss exactly what you need to do when your credit report is littered with collections and charge offs.

Step: 1 Negotiate debts owed
Once you have pulled a copy of your free credit report, get an account of the collections and the creditor’s number that is reporting it. Start calling these collections companies and negotiate a payment plan or an agreement to pay off the debt for pennies on the dollar. If you have a $30,000 dollar credit balance its not unusual for them to except $7000 as a settled balance. What ever deal you can negotiate make sure you keep the arrangement in good standing.

Step: 2 Get letters from Collection Company
After you have come to an agreement with the collection company on the phone, ask them to give you a letter to delete from all 3 credit bureaus. This may or may not happen. Typically the collection company will either give you a letter showing you either settled the account for paid it in full. Regardless of what you negotiate, make sure you get that letter. It is not uncommon for these collections company to not report the updated information properly. If it’s not reported properly and you did not get documentation you took care of the account, it’s your word against theirs.

Step 3: Negotiate most recent collections and small balances first
While you are going through the negotiation process with your creditors, make sure you start with the most recent collections first. The reason for this is old collections that are close to 7 years are about to fall off your credit report anyways. So there may not be a need to pay those debts off. Also start with paying off small collection balances first. It’s is less of a hit on your pocket book.

Step 4: Pull a copy of your free credit score report
After you have paid some of your collections off, pull a copy of your free credit reports to see if the collection company has removed the collection or updated with the credit bureaus properly. This process will more than likely need to be done several times through out the year.

IF you have collections that have been on your credit report for more than seven years, you can dispute it. This will get it removed. Go here to dispute on-line for collections that have expired.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Understanding your spending habits can be rewarding

During this day and time credit cards can have two affects on your credit score reports. If you don’t have credit cards it can affect your credit score in a negative way. If you have credit cards and charge over 30% of the allowed credit limit this will affect your credit score in a negative way as well. Credit cards are part of the credit scoring process. You have to have them in order to have good scores. Part of the FICO score model looks at your mix of credit. Part of the mix factor is having credit cards revolving on your credit report. Credit cards are part of the credit building process. You have to have them, but need to be responsible with them. Here are some advantages of some credit cards.

0% offers
Some department stores will offer you 0% or low interest to buy there products. If you pay off the debt owed in during the allotted time to maintain that interest, this is like borrowing money for free.

Cash Back
This is a interesting offer with the credit card companies. Some card companies will give you back 1% on all purchases. So if you spend $100.00 they will give you back $1.00. Some credit card companies will give you discounts on items purchased. So the idea is for you to spend money, but if you manage your money correctly it can be rewarding for you.

These are some tips on how credit cards can be rewarding, just make sure you pay off the card so you don’t get high interest rate charges.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Good signs for the Mortgage Business in 2009

There is no doubt the Mortgage Industry has been suffering for the last 2 years. There has been a ton of banks go out of business and people all over the United States loose their jobs. With all the foreclosures and the downturn in the quality of buyers it has been extremely tough to get some home buyers financed. Luckily FHA is our current market, and allows people all over the U.S. to get financed even though their credit scores may be low.

According to, Bernard Markstein the Senior Economist for the “National Home Builders Association the “First Time Home Buyers” market will be taken off in 2009. He is claiming that the increase in homes sales for this market should increase around 700,000 units. This is great news, because the first time home buyers market drives the real estate market. When first time buyers are active this allows people who need bigger homes to upgrade. In return the new home industry starts building again. This is exactly what our economy needs, because this will create more jobs.

So the hope is the First Time Home Buyers will shrink the overwhelming market of homes for sale currently around the U.S. This will allow other families to move on with the purchase of there new homes.

Yes, getting a loan will be a little tougher but with good credit education it’s really not that hard to get a mortgage loan. During the past years it was just too easy to get a loan, but now the lending market is where it needs to be. We definitely don’t want to go through this process of banks going out of business.

My best advice if you are getting ready to make a purchase soon, is to get a copy of your free credit score report and see where you stand. Your credit score is now more important than ever. In order to get good interest rates most banks want to see at least a 620 plus fico score. Once you pull your credit and find you need some credit repair, you can repair you credit for free. Use the web; it can save you time and money.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Avoid a low Credit Score.

With your Credit Score being the doorway to financial health I thought I would give some tips on what to avoid so your credit score is not affected. If your credit score is currently low I guarantee that you are paying too much to your creditors. Any business that is in business for profit is looking for a reason to make money. If a creditor knows your credit scores are low they will charge you for it. The reason is because they can. Here is what to avoid so your creditworthiness is not affected.

Late Payments
This is one credit dink I see all the time. If you are late on a obligation that reports to the credit bureaus I assure you that your score will drop around 75 to 100 points. Timely payments account for 35% of your overall FICO score. This particular factor in your credit score is the biggest factor of all.

Amounted Owed
If you have credit card debt, and the balanced owed vs. the allowed credit limit is more than 30%, your score is affected. The amount owed accounts for 30% of your overall FICO score. You should keep your credit debt well below 30% of the allowed credit limit.

Length of Credit History
Once you are granted some credit the FICO score model looks at how long you have been in good standing with your credit. If you have a good history with your creditors, you can count on it helping your overall credit health. The length of your credit history accounts for 15% of your score.

Mix of Credit
Mix of credit accounts for 10% of your FICO score according to Fair Isaac. So you need credit cards, installment loans, auto loans, department store credit, etc…… The rule of thumb is to have at least 3 to 4 lines of different types of credit to get the best overall score.

New Credit
New credit accounts for 10% of your FICO score. The FICO score model does not like to see you applying for too much credit. Too many hard credit inquiries will affect your credit score. The rule of thumb is around 3 to 4 different types of credit.

Identity Theft & Credit Monitoring
Make sure you are pulling a copy of your free credit report regularly. With the identity theft problem it is recommended to set up some type of credit monitoring with immediate alerts. So if something happens you will know about it quickly.

Co-Signing
Co-signing is a big problem as well. We don’t recommend co-signing for anyone. If a family member or friend does not have the credit to buy, the best thing they can do to get credit established is to get a couple of secured credit cards. This is the fastest way to improved credit health. With a little history, usually 12 months of good payment history the creditors will open the doors of credit.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Credit Score increase Testimonial

Hello I have found your site to be one of the most informative sites on the web. I believe you have the insight of what to really do since you guys have experience in lending. It makes a difference when you have first hand experience. I have been reading all your articles because I have credit issues. I have used your techniques to increase my credit scores on my credit report. I have been able to increase my credit scores 75 points by using your advice. This site is dynamite. I did not have to pay expensive credit repair fees since you tell what to do for FREE.

Thanks so Much,
Lindsey Wagner

Lindsey,
Thanks so much for the testimonial; we have been trying extremely hard to get the correct information on the web. One of the motivations for this site was because of all the incorrect information on how to fix bad credit reports. There are good credit repair companies that give good credit restoration for a fee, but most just take your money. We will keep updating any new techniques we might come across to improve your FICO scores. Stay tuned.

CreditScoreQuick.com

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

When should you check your credit score report?

There is a lot of debate out there on when you should check your free credit score report. I am sure you have read that you can get your credit report for FREE at www.annualcreditreport.com. Yes you can, but you get it once a year for free with no credit scores. It is worth paying around $29.95 to get your credit scores along with your credit report. The reason is when lenders make there decision process your scores are part of that process. In the current credit report market you can get your free credit reports with scores on a trial period. So if you are getting ready to make a purchase or have been turned down for some reason, you should pull a recent copy of your credit report with credit scores from each credit bureau. Here is a list of triggers to pull a recent copy of your free credit reports with scores.

• Been recently denied for a credit
• Suspect someone is using your identity
• Suspect a creditor may have reported some late payments incorrectly
• Need to fix your credit report
• About to make a big purchase
• Want to know your credit scores

Even if you don’t have any of the triggers mentioned above you should pull your credit report every 3 to 4 months for good credit management. You never know if someone is messing up your good name. With the new digital age and access to personal information your social security number is floating around everywhere. Typically someone that gets your social security number is an insider at a company that has personal information on file. With the amount of foreign nationals coming to this country your social security number is a hot item on the black market. It is also a hot item with Illegal Aliens. Identity Theft recently has became officially the biggest crime waive in American History. With all of this being said staying on top of your free credit score report is a must. Once something negative has happened to your credit it could irreversible for 7 years. The only thing you can do to fix the problem is get it removed if it’s not your fault. My point being once your scores drop it takes time to regain what the mistake caused.






If you are confused on what type of credit report to get, you might consider a site that offers multiple credit report offers. When you pull your credit report you definitely want a 3-1 credit report with scores from each credit bureau. Some websites offers only give you a 3-1 credit report with one score. You really need all 3 scores. Some sites offer a credit report with no scores. So my point is you need the right credit report if you are going to pay for it.


About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

How a Co-signer can affect your Credit Report

Do you want your credit score to plummet, go ahead and co-sign for someone. I personally believe this is a huge problem. With your credit score and credit report being the roadmap to financial health, the question is can you really afford to co-sign for friends and family. Over the years I have seen more problems with this issue. Here is how a co-signer can affect your personal credit.

Late Payments
If you co-sign for a family member your credit report could be at risk. If for some reason the family member is late on an obligation you co-signed for your credit score just dropped about 100 points. Most people don’t thing about this, but it happens all the time. Anytime someone is late on a obligation that reports to all 3 credit bureaus, that bad mark will be on there for 7 years. It’s not worth it. If you have to co-sign for someone make sure you are not getting ready to make a big purchase, because it could affect your purchasing power as well. Some banks like to see a payment history in good standing usually around 12 months on co-signed obligations. They also typically like to see proof that the payment is coming out of the person’s bank account you co-signed for. So co-signing opens up all kinds of worms in the world of finance.

Income to Debt Ratio
Once you have co-signed on a loan for a friend or family member it could affect your ability to get a loan for something else. That added debt that is showing up on your credit report is technically your responsibility as well. Let’s assume you have this car note you co-signed for and the payment is $500.00 a month. You have now added this debt to your portfolio of debts in a underwriters eyes. In order to buy something else an underwriter may require a good 12 month payment history by the other party to disallow a debt from your portfolio of obligations. So with this being said think real hard before you co-sign on anything. I don’t recommend it. There are ways for someone to get there credit established so they can get loans in there own name. The internet is a great resource. There is anything you can imagine on the web to help you achieve just about anything, including getting your own credit established so you don’t need a co-signer.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Free credit score and credit monitoring with TransUnion

TransUnion now has their class action lawsuit website finally running. If you are interested in getting your credit score report and credit monitoring go to ListClassAction.com. You can sign up for 6- 9 months of this service for free.

Anyone who has opened up new credit or a loan in the last 21 years is entitled to this free service. You must register before September to qualify. You need to know that you only get one credit score and you don’t actually get your true FICO score that most banks use to determine your creditworthiness. So is this service beneficial, well its like having part of the recipe, you will get your activity with one bureau, and you don’t actually get your real credit score. You will get TransUnions TransRisk credit score. If you want to get your FICO score go here.

So if you are getting ready to make a purchase like a car, house, or a credit card this service could be beneficial due to the fact that you get your credit report with TransUnion. If you are interested in getting a 3-1 credit report with all 3 credit scores you will have to pay for it. Our recommendation is to get this type of credit report because that is what lenders look at. Regardless it will not hurt to get this free service temporally with TransUnion.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Credit Q & A

Q:
Hello Mike,
I have searched all over the web for credit reports with credit scores for free. One thing I have noticed is some sites sell credit reports with one score, and some with no scores at all. Where can I get a credit report with credit scores for free. I would prefer to get a score from each credit bureau. I am getting ready to buy a house and would like to know where I stand. Will this affect my credit score by pulling my report ?

Margarita Jiminez

A:
Hi Margarita,
Great questions you are asking. There is only one site where you get your credit report for FREE, which is http://www.annualcreditreport.com/. At this site you don't get your credit scores. If you want your credit scores you have to pay for a score with each bureau. If you are getting ready to make a purcahse you need to get all three of your credit scores to see where you stand. You can get your credit scores at our site with all 3 credit bureaus on a trial period. Most of our offers will give you all three credit scores. Pulling your consumer credit report does not affect your score at all. This type of credit pull is considered a soft pull according to my fico. If you have any questions dont hestiate to e-mail us.

CreditScoreQuick.com

CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Get Credit Report information and credit questions on-line.

Your credit report is accessible 24/7 on the internet in a few clicks. Equifax just released how the internet is a great resource fore accessing anything about your credit. The internet is amazing in regards to how you can get the information you need to fix just about anything. You can get recipes, commons household items, cars, credit cards, insurance, mortgages, or any common question answered. The internet is so powerful that you could actually stay home and never leave using the internet to buy what you need.


The internet being the best channel for credit reports, credit scores and getting free credit repair help, you can rest assure you will have access to what you need securely in a few clicks. If you want to access your credit report, and did it the old fashion way, you would have to wait for your report to come in the mail. I don’t know about you, but I know the mail is not safe anymore. You definitely don’t want anything with your social in the snail mail if you can avoid it. With the security that has been implement on the internet to get your credit report and credit scores safe and securely.




Most people don’t know how convenient the internet is. The internet has revolutionized the way we all do business and function in society currently. Let’s assume you have credit issues, and you don’t know what to do. Most people will search for credit repair sites. You will find that most credit repair sites charge horrendous fees for something you can do yourself for free. If you were to take the time to do some research, you will find that with a little credit education and implementation of what you learn your credit will improve on its own. The internet is just like your local library, it has all the information you could imagine.

How easy is it to get credit report on-line?
Let’s assume you are getting ready to buy something, or just would like to know what your credit scores are. Getting your credit report is so easy that a caveman could do it. Typically when get your credit report you will need to know your credit scores. Your credit scores will typically cost you around $30.00 to have that piece of mind. But it’s worth having believe me. In a matter of a few seconds with validating who you are, you will receive your full 3-1 credit report. Pulling your consumer credit report does not affect your credit scores by the way.

Credit Repair on the web
Let’s assume you have credit issues, and you would like to start repairing them right away. You can find all kinds of articles about what the first step would be in the credit repair process. With your credit being the single most important part of your financial health, you can rest assure the answer is on the web. In a few keystrokes you can be reading an article that will pertain to your situation. This is the power and resourcefulness of the web today. Got questions about credit? Just Google it.



About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Top Credit Score - FICO score Myths

Your credit score or FICO score is the most important element in your financial life these days. Landlords, employers, banks, utility companies and insurance companies all scrutinize your credit score. This credit score is what sums up everything within your credit report. Your credit scores range between 300 to 850.


Yet according to a survey recently revealed, nearly half of Americans have no idea what is on there credit report until it’s too late. According to recent studies people are mis-lead into thinking certain situations determine how high or low a credit score is. Despite all the news media and internet information the fact is the lower your credit score the more you pay. Also in some instances you get that ugly word you were told when you were young, NO. No one likes to be told no, it makes you feel like a child again, even though you are a grown up. If you are applying for mortgage and your credit score is a 610, you could get denied or pay $400.00 dollars a month more because of the risk based pricing now in the banking industry.

While all of this is sinking in, make sure you are not falling for these credit score myths:

Myth 1: Credit Card offers are hurting your credit score. Credit Card offers do not affect your credit score. Now if you respond to the offer the inquiry could lower your credit score. Fair Isaac says that too much credit does not affect your score either, but high credit card balances will lower it.

Myth 2: The higher your salary the higher your credit scores. Paying down credit card debt will lower your credit score. However the amount of money you make, or how much you have in the bank has nothing to do with your FICO score. So in other words your net worth or the amount of money you have coming in is not factored in the credit scoring process according to Fair Isaac the creator of the FICO score.

Myth 3: When you get married your credit scores get merged. When you get married this is simply not true. The only thing that gets merged are accounts you acquire jointly. If you both apply for the same card, then that card and its history shows up on both credit reports.

Myth 4: Shopping around for a loan hurts your score. When you apply for a mortgage, they will pull a recent copy of your credit report which will give a inquiry on your credit report. FICO allows you to shop for a mortgage with multiple lenders with out it hurting your fico score during a 30 window. So during this 30 day window multiple inquiries for a mortgage will only count as one inquiry according to Fair Isaac, MyFICO.

Myth 5: You only have one Credit Score. You have a credit score with each credit bureau. Your credit score could vary as much as 50 points, which is why you need to check your credit score with all 3 credit bureaus.

Myth 6: Checking your own credit report will lower your credit score. This is a question I get all the time. When you are pulling your own credit report it is considered a soft inquiry, which is not factored in the credit scoring process according to MyFICO.

Myth 7: Your age, sex, income are factored in your credit score. According to MyFICO none of this has a factor in your credit scoring process. What the FICO score model is looking for is your credit history with creditors which you owe a debt.

Myth 8: Disputing a item on your credit report will get it removed. This is a common misconception that if you dispute a item it will get it removed. If you dispute a item and you actually owe it, and its reporting within the 7 years required by law, it will not be removed. Now getting inaccuracies removed from you credit report will increases your credit score. Remember collections and chare offs report on your credit report for 7 years from collection date. If you dispute that item during that period, you are wasting your time.




About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Get your real FICO credit score

Have you ever wondered where to get your real FICO credit score? Did you even know there is a difference in scores that are provided on-line? Each of the 3 credit bureaus base their scoring model from Fair Isaacs FICO score model. So essentially you would think you are getting your real fico score. Unfortunately that is not the case. There is only one bureau that actually gives you your true FICO score, the rest of the bureaus give a credit score using there version of the FICO score model developed by Fair Isaac.

Experian
Experian uses a proprietary scoring model that is called “PLUS Score” model which was developed by them in early 2004. This particular score model is based on the FICO score model.

TransUnion
TransUnion sells the TrueCredit score. They don’t use the FICO score, so when you pull your credit report with TransUnion you will get there version of your credit score.

Equifax
Equifax partnered with Fair Isaac and now offers your true FICO score. This credit score is the credit score actually used by most lenders. If you are interested in getting your Equifax credit report with your true FICO score, also called Score Power, go to www.creditscorequick.com/equifax123

If you are wanted to know all 3 of your credit scores, you can get a 3-1 credit report at CreditScoreQuick.com. Until recently you did not even have access to your credit report, now with your score being so important and the ability to access it quickly on-line you have nothing to loose, and much to gain by keeping on top of your free credit score report. Remember not all credit reports are created equal.

In order to get your credit scores you will have to purchase them, you may also get a free trial. So while the free trial is taking place, you can print out your free credit score report, and call back to cancel once your credit report has been printed out.

We hope this was not too confusing, because I know it can be. The fact is lenders look at your credit scores regardless of what score model the credit bureaus use. They typically pull from all 3 CRA’s to determine your credit health. So if lenders look at all 3 scores, you should do the same.

Get your real free fico score report today!!

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

How 3-1 Credit Reports with Credit Scores will better educate you.

A consumer armed with their 3-1 credit report will save more money than one whom does not have any idea what is on it. Creditors love an uneducated consumer when it comes to borrowing money. Did you know a bank can charge a rate between 1% to 4% difference depending on how aware you are of the market and your creditworthiness? They are in the business of making money just like any other company. This type of difference can be the same for any type of loan, insurance, and even credit cards. If you are walking out there with credit report blinders on, I guarantee that you are paying too much on rates and terms.

Arm yourself against high interest rate bandits
If you take the time to pull a copy of your credit report with credit scores you will be properly armed with first hand knowledge of what the creditors and the scoring models say about your personal credit worthiness. If you are getting ready to make a purchase, refinance, or just to get an installment loan, you need to be aware of what is on your free credit score report. If you don’t take to time and money to get a copy of your credit report with scores, it will cost you a lot more down the road. Its like going shopping for tires, everyone has different prices for the same product. If you don’t take the time to do your research you will pay too much. If you are curious what the credit score ranges are, here they are according to Fair Isaac.

The general scoring ranges between 300 – 850. Fair Isaac divides the scores into five categories.

780 – 850 – Low Risk
740 – 780 – Medium – Low Risk
689 – 740 Medium Risk
620 – 690 – Medium High Risk
620 – and Below – High Risk or “sub-prime.”

Having a copy of your credit report advantages:
• Better Interest rates
• More savings
• Better Terms on loans
• Check for inaccuracies
• Lower insurance
• Fix errors
• Piece of mind
• Check for identity theft

Hopefully this article has explained some of key points to being educated about what is in your credit report. Years ago this access was not even available to the public. Now that it is you should check your credit report often to ensure you are educated about your own creditworthiness.

Don’t waste any more money; get your FREE credit report today!

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

When should you check your Credit Report?

We all know to get a check up with the doctor once a year, and dental twice a year, but how often should you check your credit report health? Just like getting a physical at the doctor to get steps to improve your physical health, you need to do a financial check up to improve your overall credit report health. With the way matters are these days you cannot afford to not stay on top of your financial health. If you want to retire someday you definitely don’t want to be paying higher interest rates on money borrowed because you are not up to date on your credit report history or because you have mismanaged your credit health.

There is lots of advice on the internet to check your credit report once a year, but is this the correct information? This might be a good rule of thumb for someone who does not have any credit out there, or never makes any purchases. Unfortunately most people are doing all the above quite often. Here are triggers for checking your credit report with credit scores.

You have been denied for a credit card, loan, mortgage, or other credit based services.
If your credit was used in the decision process for a loan and you were denied, you are entitled to a free copy of your credit report. Most lenders will send you a letter in the mail listing some of the reason as to why you were denied credit.

Once you get a copy of your credit report and credit scores, review it and make sure you were not denied because of inaccurate information being reported.





You suspect your identity has been stolen
Unfortunately, identity theft is becoming a problem of epidemic proportions. Identity theft can go unnoticed for months, even years. If you discover your identity has been stolen report it to the credit bureaus immediately.

Your are preparing to make a major purchase like a home, car, credit card, or any other credit-based service
Your credit report history and credit scores are the primary factors in the loan approval process. You would be surprised as to what credit report entries would get you denied for a loan. In some cases even a $16.00 medical collection can keep you from getting your dream home.

You are planning to repair your credit or get out of debt or both
Since a credit report contains most if not all of your financial accounts, it’s the best place to start when you are focused on getting financially healthy. You can also easily use the information on your credit report to get your plan started. If you are looking to get out of debt or fix your bad credit report, there is no better place to start than your free credit score report.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Improve your credit score before it’s too late

Your credit score is everything these days. Maybe you are just one of those individuals that would rather not know what is on your credit report. Let’s assume you just got laid off, and now you have to find a job. Guess what employers are doing now, they are pulling your credit report to determine your risk. Typically people with good credit are not going to steal; they seem to have their life in order, etc……according to corporate companies. So if you have had some bumps and bruises on your credit report this is the time to get a recent copy of your free credit score report and start working on your credit. Here are some pointers on what is needed to increase your FICO score.

Secured Credit Cards
If you don’t have any credit and your current credit report is littered with collections and charge offs, you will need to establish new credit. Yes I know credit cards are evil, but they are a necessary evil these days. I would recommend getting some secured credit cards with Orchard Bank. They are a credit card bank with low fees, and typically require a $200.00 deposit into there account to secure the card. This process will get some good revolving credit reporting to all 3 credit bureaus on your behalf. Typically you need a couple of credit cards reporting. So go a head and get a few different secured credit cards. Since authorized user accounts don’t help anymore, secured credit cards are the quickest and most reliable way to get your credit
established or re-established.






Collections Accounts
There is a common misconception that collection accounts can be removed even though you owe them money. A collection account will not go away until the account is set to expire, which is 7 years from the collection date. That is a long time to wait for something to disappear on your credit report. The fastest way to get your scores up with collections is to pay off the newest collections first. I guarantee you once the account is updated from a balanced being owed to “paid in full” or settled, your scores will go up. Once you pay off the collections make sure you get letters from the collection companies stating what was done, either paid in full or settled on. After about 60 days re-pull a copy of your credit report with scores and make sure they updated with the credit bureaus.

Quick Credit Fixes
Folks there are no quick fixes to credit repair, Fair Isaac shows that in their FICO® score model that time is also part of the credit scoring recipe. Yes there are some tricks I know that will get your credit sores up, but time is also a factor as well. The main key is to make sure you don’t have late payments while you are doing this entire process, make sure nothing goes to collection. The banking industry will never be same again because of the amount of mortgage foreclosures. I guarantee you the lending industry is tightening so much currently that families with good credit could have problems getting loans. So make sure it’s not too late, if you are getting ready to make a big purchase like a new home for the family, make sure your credit is in line with today’s times. One thing I know for sure, and that is the lending institutions are going to get even tougher. So instead of getting told NO, get told YES.




About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , mortgage loans, auto loans, insurance and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

What’s in your FICO® Score.

FICO scores are calculated from different data within your credit report. This information is grouped into five categories. The Chart below will reflect this as well as the percentage of importance for each category.











These percentages of these categories are for the purpose of the general population. For example someone that is new to the credit scène these percentages may not apply.

Payment History

• Number of accounts paid as agreed
• Presence of negative Public Records(Judgments, bankruptcy, suits, liens, wage attachments, etc ( Collections, and/or delinquency(past due items)
• Severity of delinquency( how long past due)
• Amount past due on delinquent accounts or collection accounts
• How much you’re past due on accounts or collections.
• How many collections you have
• Account payment information on particular accounts (installment loans, credit cards, retail accounts, finance company accounts, car notes, mortgage, etc…)

Length of Credit History

• Time since account activity
• Time since accounts opened
• Time since account opended, by type of account

New Credit

• Time since account was open, by credit type
• Time since credit inquiry
• Number of recently opened accounts, and proportion of accounts recently opened by account type.
• Re-establishment of credit after recent credit problems
• Number of recent credit inquiries

Amounts Owed

• Proportion of installment loans still owed, proportion of balances to original loan amount on certain installment loans
• Number of accounts with balances
• Amounts owed on specific types of accounts
• Amount owed on accounts
• Lack of specific types of credit balances
• Proportion of credit lines used (proportion of balances to total credit limit on certain types of revolving accounts

Types of credit used

• Number of (prevalence, presence, and recent information on ( different account types such as credit cards, retail accounts, mortgage, installment loans, and consumer finance accounts.

*Please take note
Your FICO score takes into consideration of all these variables discussed.
No one piece of information or factor will determine your score alone.

The importance of any factor depends on your over all credit history.
It is really hard to single out any other factor over another, since all factors take part in the overall scoring process. What is important is the mix of information being reported within your credit report.

Your FICO score only looks at information within your credit report. However lenders look at other information outside this report to also make a credit decision.
Example:
• Work History
• Salary
• Rental History
• Kind of credit you are requesting

Your score considers both negative and positive information on your credit report. Late payments will lower your credit score, but establishing or re-establishing a good payment history will increase your FICO credit score.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , mortgage loans, auto loans, insurance and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Save Money becasue of Good Credit Scores.

Good Credit Scores obviously is to pathway to saving money. You are probably asking why, well the answer is on money borrowed. The average American has to borrow money occasionally for different reason. Let’s assume you need to buy a car, and you think your credit score is low. You are considered a high risk and the banks will charge you higher interest on the money borrowed. Maybe you need to get an installment loan from the bank for personal reasons, you may get denied because your credit score is too low. What every your situation is your credit score will determine how much money you have in the bank at retirement. If you think about this it is pretty scary.

Examples of Money lost to High Interest:
Car loan with low credit score:
Loan Amount: $25,000
Interest rate: 12%
Term: 6 years
Payment: $488 per month

Car loan with high credit score:
Loan Amount: $25,000
Interest rate: 6%
Term: 6 years
Payment: $414 per month
*This calculation is a true current market rate calculation for car loans currently.

The difference in payment is $74.00 per month. If you have good credit you would have saved $5,328 dollars. This money could be in a interest bearing account making you some interest as opposed to going to the bank due to your high credit risk. I don’t think most people see how bad credit can affect your long term goals. Maybe you have kids and you are trying to save for college, this is quite bit of money you could have saved for one of your kid’s tuition. This principle applies to credit cards as well. The worse your credit the worse your terms will be and the more money you throw out the window. Once you see this on paper it is quite scary, but there is help. The road to recovery typically takes about a year, and the first step is to get a free credit check with credit scores. Go ahead and make the plunge and see where your credit report currently stands. I think most people avoid knowing what is on their credit report. No one likes to hear or see bad news. Unfortunately this does not get the problem at hand resolved.

Life is too short and we need to live well so we can enjoy our short stay on this wonderful planet. You might as well make the best of it, and start saving on interest and terms today by being an educated consumer of your personal finances. If you have been avoiding it for a while, go ahead and make that change starting right now. There is nothing like the feeling of going to the bank and not worrying about whether you will get approved or not. With good credit all you have to worry about is what bank will give you the best terms. Remember your “Credit is your Life.”

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , mortgage loans, auto loans, insurance and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Lenders are raising the bar on Credit Scores

Your credit scores have never been more important than now. Recent turmoil in the mortgage industry has caused lenders to raise the bar on credit score requirements for different loans. The cause of this is the significant tightening up in the mortgage insurance industry. Mortgage insurance varies from state to state, but is required if you don’t put down a considerable amount of money on a loan. During the mortgage meltdown that has taken place over the last couple of years, mortgage insurance companies starting seeing enormous amounts of claims on certain loan types. These particular loans have had their bar raised on credit scores in order to even get financed since the banks cannot get certain types of borrowers and loans insured now.

Credit Score requirement for Conventional loans.

 95% Conventional loans-Minimum 620 + Credit Score.
 100% Conventional loans-now requires a 20% second lien – 720+ Credit Score
 95% Conventional stated loans-requires a 720 + Credit Score

*Some credit score requirements may vary from lender to lender, but this is a good bar to go by.

Credit Score requirements for FHA loans.
Believe it or not this is a very controversial move on the lenders, because FHA does not have a credit score requirement. I know for a FACT that HUD is very concerned about this since they do not have a credit score requirement to insure their loans. The lenders that are providing the financing do, due to the high foreclosure rate for credit scores below a 580. With this being said most lenders now require a minimum of a 580 credit score to finance you FHA. This is just an example of how the credit score is so important to get financing these days. If you are in the market to buy a home, we suggest that you see where you stand. Pulling a copy of your consumer credit report with credit scores does not affect your credit score what so ever.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, identity theft protection, secured credit cards, student credit cards , mortgage loans, auto loans, insurance and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Fico Scores dropped by Authorized user accounts

The FICO credit score model is being changed and implemented during the first of this year. Your FICO score will no longer be determined by being an authorized user on someone else’s credit card account. So in other words piggybacking someone else’s credit no longer helps you.

So if you are an authorized user on somebody else’s credit, you will more than likely see a change in your credit scores.

Adding a friend or family member to their credit card has been longed used by a lot of people to help someone they know establish credit. Many parents over the years have added a child to one of their credit cards to help them establish credit. Unfortunately this is not a good practice to follow anymore.

Credit repair companies were using this system as a way to sell authorized user accounts and piggy somebody else’s good credit to improve their credit score. This credit loophole is the motivation for Fair Isaac to shut down this process in the FICO score risk model.






How this will affect you:
1. Those of you that are new to the country or just starting out with credit will have to establish your credit with secured credit cards.
2. If you are getting married and you were thinking of closing your accounts and being added to your spouse’s accounts, you might re-think this again.
3. Once this change takes affect, their will be no value towards you being a authorized user on anyone’s credit card account.
4. It is possible your credit scores could go down significantly because of this change.
5. If you have been paid to rent out your credit card account you could be committing fraud. It would be advised to stop immediately.
6. If you have been paid to have your name added to someone else’s credit card as a authorized user it is possible you are defrauding lenders. It would be in your best interest to have your name removed as soon as possible because doing business with these companies is a violation of state and federal laws.
7. If you are getting married and you don’t have any credit cards where you are primary or joint account holder you might want to open a couple of credit cards in your name.
8. Women are more likely impacted by this than men because more times than not women are authorized users on their husband’s cards.


Hopefully this has shed some light as to how the changes to the new FICO score model will affect you in the near future. If you are new to the wonderful world of credit, now may be the time to apply for a secured credit card to get matters underway of establishing a good credit rating. Or maybe you are new to this country the same process applies.




About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, identity theft protection, secured credit cards, student credit cards , mortgage loans, auto loans, insurance and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

FHA loan Basics

FHA loans are loans that are insured by (HUD) Housing Urban and Development. FHA loans have been around since the 1930’s right after the “Great Depression." This was when 4 out of 10 households owned a home. (FHA) Federal Housing Administration is the savior for our current market just like it was back during the roaring 30’s.With FHA loans especially during a credit crunch like we are currently are in, you can rest assure banks are willing to be more lenient to approve credit challenged borrowers with FHA financing. The reason is FHA loans are insured by HUD, and if the borrower looses the home HUD will pay a claim to lender for the loss. FHA is the largest single insurer of loans in the world.

FHA Advantages.

• Lower interest rates, typically interest rates are lower on FHA loans with the banks since they are government insured loans
• Only requires minimum investment from borrower of 3% down payment, which can be eliminated by Down Payment Assistance. So essential you can get a 100% financing with FHA loans. Note: Requires Seller participation
• If you have less than perfect credit you can typically can get a loan with FHA, they usually like to see 12 to 24 months clean credit report history. You can even get a loan while in chapter 13 bankruptcy.
• No Credit Score Requirement
• Recent loan limits increased-varies from state to state; go here to find out. For example you can buy a home in the state of Texas with FHA up to $271,050. Depending on if your state is a high cost area; obviously this loan limit would be higher.
• Will allow alternate lines of credit if not good history is on credit report.
Example:
1. Letter from any utility company stating you have been on-time with your payment history for that last 12 months.
2. 12 month payment history from car insurance company, cell phone company and even daycare will work.

If you are currently in the market to buy or maybe you feel like you need credit repair, what ever your direction is, getting a FHA loan is not as hard as you think. FHA gets people approved that may not get approved with other loan types. The first step is to examine where you are at with a lender and get the ball rolling. IN this current market some lenders are requiring you to either have a 580 credit score or higher. They will also allow no credit score but your interest rate is higher than current market rates. This is going on even though FHA has no credit score requirement; this is due to bad performance of loans below the credit score benchmark of 580.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, identity theft protection, secured credit cards, student credit cards , mortgage loans, auto loans, insurance and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthines

Identity Theft

IDENTITY THEFT

Identity theft occurs when someone appropriates your personal
information to commit fraud or theft. Personal Information
can include your name, date of birth, social security
number, and drivers license number.

TIPS FOR YOU TO REMEMBER

¨ Minimize the amount of items with personal information in your wallet, purse or vehicle.
¨ Check your mail everyday.
¨ Shred any documents with your personal information including pre approved credit card applications.
¨ Be aware of telephone, Internet, or door to door solicitations which claim to be legitimate entities in order to gain your confidence then manipulate you to obtain your personal information.
¨ If you receive checks in the mail from any unknown party and you are required to wire transfer money in return ( foreign lotteries, sweepstakes winner, mystery shopper, or through popular websites you have utilized) then you are likely to be a victim of financial fraud.
¨ Lock up your financial documents, credit cards, and blank checkbooks in your residence.
¨ Pay attention to billing cycles for statements that do not arrive in the mail.
¨ Use a secure Internet connection online when entering and transmitting personal information.
¨ Be reluctant to register with websites that request your personal information.
¨ If you have been a victim of identity theft consider getting a fraud alert (1-800-680-7289) or security freeze (888-909-8872).
¨ Check your credit report periodically from the 3 major credit bureaus.
http://www.equifax.com/
http://www.transunion.com/
http://www.experian.com/
Free Credit Report with credit scores from all 3 Credit Bureaus- www.creditscorequick.com/free

The Federal Trade Commission (FTC) serves as a clearinghouse for complaints by victims of identity theft. www.ftc.gov/idtheft
1-877-ID THEFT (438-4338)
Non Profit organizations to assist victims http://www.idtheftcenter.org/ http://www.idtheftne.org/ and http://www.financialprivacynow.org/
To Opt out of pre-approved credit card applications 1-888-567-8688
Free Antivirus Software for your computer http://www.avast.com/
Microsoft has free spy ware at their website http://www.microsoft.com/
Or Spybot free spyware program http://www.safer-networking.org/

http://www.fakechecks.org/ This website has reenactments of popular scams

Your computer should have the firewall active and be set to receive automatic updates from Microsoft. If you have wireless network make sure to set passwords and encrypt the network access.


http://www.msnbc.msn.com-/ Dateline “ To Catch an Identity Thief”

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, identity theft protection, secured credit cards, student credit cards , mortgage loans, auto loans, insurance and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthines

Fico Score

Fico score is what 90% of the largest banks currently use to determine your credit risk. Fair Isaac & Corporation invented the fico scoring model in the late 1950’s. Fico score has been widely accepted as the standard for measure of ones likelihood of paying back a obligation. Fair Isaac does not reveal its recipe for computing that 3 digit number, but they give a nice pie chart to explain it somewhat.










Credit Scores are calculated by using mathematical tables and scoring models which best predict your future credit performance. When you go to a mortgage company or bank they pull your fico score. This is what they use to deny or approve you. If you are about to make a purchase it would not hurt to pull your fico score with Equifax to see where your score stands up currently.

Have you wondered what a good fico score is? Here is a model to show you the national average.









What is the range of FICO scores ?
FICO (aka Classic or BEACON) scores can range from 300 to 850, but the majority of scores usually fall within the 600s and 700s.



About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, internet identity theft software, secured credit cards, student credit cards , mortgage loans, auto loans, insurance and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness