Most people know that their credibility is on a credit report, but few understand how the brand. FICO score was developed by Fair Isaac & Co. to assess the risk that consumers pay their bills. Estimates range from 300 points (higher risk) to 850 points (less risk). According to Equifax, one of the three major U.S. credit, Fico evaluations are the decisive factor, more than 75% of credit applications. In 2003, almost 50% of Americans reached between 700 and 800th
FICO evaluations are mathematically five factors: the development of the past loans, debts, credit-occupancy (how long you have had credit), types of loans and the pursuit of new credit.
With regard to the report, and why should I care?
After a detailed look at the Equifax report provides an overview of the information can be obtained from the major credit bureaus. Equifax report is divided into seven sections.
The first section contains personal data, such as previous addresses, social security number and employment history. This information is essential for the protection of identity thieves. Make sure it's correct, and they are not carefully before discarding.
The second section provides a brief history of your credit card. It includes the number and type of account (both open and closed), you have now and whether these accounts are in good condition. It also contains records on the progress of investigations in the form of loans last year.
May seems more accounts you have your credit score will be higher, but in this case more is not always better. Many financial institutions assume that all your available credit and the proportion of payments which would be required to service this debt. Do you have a dozen cards with zero balance and have no problem 2 months $ 000 mortgage repayment rates, but if the bank factors your ability to pay on your credit cards, reduced.
The third section contains detailed information about your account. It contains the name, type, number, date of openness, balance and the status of all accounts of your business. The breakdown for each account provides for the payment of history, the last day of work and detailed information on the credit issuer. If you do not agree with any of this information challenge. In accordance with federal law, the agency has 30 days to respond. If your goal is the successful information campaign will consist of your report.
The fourth section is devoted to research on your credit history. Requests are considered "hard" or "mild". Hard examination if they allow companies access to their credit report. They are followed, and many of them in a year will have negative consequences for your FICO score. Soft inquiries generated in the current creditors, check the status, if card issuers review of the file, not asked, and if your personal credit file. These studies have no impact on your credit report.
The fifth section describes the accounts were transferred to banks. The sixth chapter contains information about the privileges, garnishment of wages or other decision against you at the federal, state or county documents.
The last section describes how to challenge the information on your credit report. Despite the allegations until the night infomercials little you can do in the accounts and other harmful information, but wait. The Federal Trade Commission, said a large part of this information remains on your report for seven years. Bankruptcy rest for ten years and a trial in relation to the information before process would be solved. You do not need these difficulties, to pay a timely and solve all problems immediately credit.
How is that the consequences of your customer data
Credit reporting company Equifax quoted late or missed payments, occupation and size of loan account balances against credit limits of factors that influence the FICO score. Do you have a good income and pay your card in full each month leave, but also possibly remnants have a negative impact on its customers. In addition, if you do not have a mortgage, car payments or other debts running, it is unlikely that your FICO number 850.
Check your credit --
Reports of loans you receive online for less than $ 50. If you are planning large purchases, such as property or second home, start a credit check, at least 90 days before the date of purchase. That gives you more time to resolve differences on the report.
The three major U.S. credit bureaus are Equifax, Experian and Trans Union. They work independently, at their request a report from each of them to get a complete overview of your credit history.
Despite ads that promise to repair bad credit, prevention is the best way to avoid problems. If it is true, can hardly be done to delete negative information on your report, but wait 7-10 years. Avoid harmful information from entering your credit report, first, and improve your chances of obtaining financing in the future by the payments on time and settle all issues arising in connection with the creditors.