Our Firm Answers All Your FICO Questions
Credit scores are the source of mystery to many consumers, and the subject of misinformation that leads many others astray. What your three-digit score means to you, what a FICO score is, and whether it is a credit score are all questions our clients typically ask of us. One thing to keep in mind is each credit bureau uses different methods to calculate your FICO score, and your score will change each time you take on new credit or experience credit-altering events. Fortunately, MyCreditRepairSpecialists.com is here to help you understand how the system works and how to beat it.
How Are Credit Scores Determined?
Credit scores are essentially a three-tiered system designed to provide potential lenders, employees, and even landlords determine how much risk you pose to them. Your credit score contains five factors: Previous credit performance (35 percent), current debt (30 percent), the duration of your credit history (15 percent), your pursuit of new credit (10 percent), and the types of credit in your name (10 percent.)
Taken together, these factors form a three-digit score between 300 and 850. Other scoring methods use additional information into account, which lenders usually combine with your credit score.
There Are Three Categories, the Third of Which We Named Ourselves:
Credit scores above 680 are considered prime, and individuals with this credit score have no problems getting favorable interest rates on loans of all kinds.
Sub-prime credit scores are below 680 but above 560. You’ll be able to secure house and car loans with this credit score, but you’ll pay higher interest rates.
If your credit score is below 560, you’re going to be the victim of high-interest rates. Additionally, procuring home and auto loans are very difficult with this credit score.
We Hold Your Creditors and the Bureaus Accountable
The most important thing MyCreditRepairSpecialists.com wants you to understand is the credit bureaus do not work on your behalf. They aren’t government agencies, and they aren’t non-profits. Credit bureaus are massive corporations in the business of selling your credit report to lenders, employers, insurance agencies, marketers, and even back to you. While they were once small companies, they’ve since grown so much regulating them – through the Fair Credit Reporting Act (FCRA) – became necessary.
Because they profit from selling your report, they have no incentive to provide accurate information. In fact, they make more money off lower credit scores than higher ones. While the FCRA acts to hold them accountable, it did not solve all the problems in the industry. Through misinformation, they’ve succeeded in convincing many the only way to repair credit is to wait seven years. That’s just not true. MyCreditRepairSpecialists.com is able to fight back, eliminating inaccurate reports from your credit and raising your score. To learn more, contact us today.