Credit
Scores
Any time you apply for credit,
whether it is a mortgage, car loan, credit
card or student loan, the lender wants to know what their risk
will be.
Lenders use Fico Credit Scores
to determine if you are a credit risk or not.
Each credit bureau Experian,
Equifax, & TransUnion generate a Fico score on you. As you
credit information changes, the bureau's store the changes
accordingly. Fico credit scores will determine risk, loan
amounts, and interest rates.
Improving your score or removing
damaging items improves your Fico credit score.
Criteria used to calculate a
Fico score include at least 1 account opened for at least 6
months, 1 account which has been updated at least once in 6
months. This enables the credit bureau's to gather enough data
on you to generate a score.
Fico scores got their name
from a risk assessment model by a company called Fair Isaac
Corp. " Hence FICO was born."
Fico credit scores provide a
guideline for lenders to determine risk on loans they write.
This is based mainly on data contained in your report. The
higher the score the lower the risk, and vice versa.
Each lender has established
their own threshold of risk they are willing to take on, each
lender has a strategy, and scoring model to determine future
risk. All 3 major credit bureau's use differing terminology for
their Fico credit scores, although they were all based on the
model created by, Fair Isaac Corp. Below are the different
models used:
Experian
Experian/Fair Isaac Risk Model
Equifax
Beacon Model
TransUnion
Empirica Model
When you talk about a credit
score people just assume you mean your Fico credit score,
however there is not any 1 score used solely to make a lending
decision about you.
Credit scores are not the
only criteria used to determine risk,
salary or income
employment(length of time at current job)
residence (rent or own),etc...
Fico isn't the only score used by
all credit agencies refer to the above models. Different
Lenders use different models ( there are a great number of
models), compile more data, and its used to keep the consumer
uninformed and confused.
Scores from each bureau can
vary greatly, this is because each bureau keeps different data
on you, and assigns different weights on different
criteria in the weighting process.
Your Fico score will change
over time, due to longer account history, solid on time
payments, will keep your score level to increasing.
Unfortunately late payments, inaccurate or incorrect data
collected will cause your score to decrease.
In closing, if you NEED to
increase your scores, fast, legally, and by a proven consumer
advocate check out Lexington Law
Firm . They will ease your pain when it comes to
repairing your credit.
Lexington Law
Firm  provides a FREE CREDIT EVALUATION so you have
nothing to lose and everything to gain.
Don't delay take back your life,
and your self respect!
Good Luck in whatever decision
you make, BUT "DO
SOMETHING"!
Mike
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