What is a Credit Score?

A credit score is a number generated by a mathematical formula that is meant to predict credit worthiness. The most common of the credit score standards is the FICO score by Fair Isaac.

The FICO score ranges from 350-850 and is intended as a predictor of whether or not you will be 90 days late on a loan obligation. Fair Isaac uses thousands of credit reports to calibrate the FICO scoring model and is very secretive of the exact formula. The average FICO score in the United States usually hovers around 700, and the best loan programs are available to people with FICO scores over 720.

The chart below is what Fair Isaac makes public about the credit scoring formula. Contact us today and we will give you a free article containing tricks and tips on the credit scoring formula.

Does a poor credit score really hurt me?

Yes, and in numerous ways. Most people know that a poor credit score leads to higher interest rates for credit cards, auto loans and home mortgages, but did you know that a poor FICO score can affect your insurance rates? The credit score has become a barometer by which many people are judged. Many employers will even research your FICO score when you seek a job.

How can I find out my credit score?

Visit www.myfico.com and order the same credit score a mortgage company uses for approvals. Requests for one’s own FICO score at www.myfico.com is considered a personal inquiry and will not hurt the credit score.

How can I get a free copy of my credit report?

By law, all consumers are entitled to a free copy of their credit report from each of the three credit bureaus once a year. Visit www.annualcreditreport.com to get yours for FREE. (This is for the credit report only and does not include the credit score.)

How can credit repair help my score?

When you hire us, we will work on removing negative items from your credit history.
We will also show you how to lower your debt ratio, even if paying off credit cards is not an option. We can also work on removing items such as credit inquiries from your credit report.

Most people are aware of the three credit reporting agencies TransUnion, Equifax and Experian. The average difference in score between the highest and lowest of your three FICO scores is 60 points. This is the result of each of the credit bureaus having different items on their report, some correct, some incorrect and some that are not being reported in full compliance with credit law.

According to the Government Accountability Office, 80-90 percent of credit reports have serious errors on them, and this does not even include the more minute errors that we look for. If we cannot remove at least 25 percent of the negative credit items from all three of your credit reports within six months, we will refund 100 percent of your money.