Saturday, 19 November 2011

Credit Scores / Credit History Repair

Credit scores are numbers ranging from 300 to 850. These scores are a measure of a person's creditworthiness and financial stability. Over the years they have become an important part of a person's future. Lower credit scores can affect your life but credit history repair can help.

Financial institutions and creditors use credit scores as the basis for making decisions on granting credit. Each bureau has it's own formula for figuring credit scores. It consists of numbers being put into their own formula. The main factors for these formulas are:

The amount of debt a consumer has
The length of time a consumer has had credit. Newer accounts are riskier
The balance to limit on each account. High balances are a danger signal
The mixture of the types of accounts a consumer has (i.e. credit cards, mortgages, installment loans)

Any negative information in these areas will need to be worked on and changed in order to get higher scores.

No open credit, no scores. This can create problems for you the consumers. Not only are the scores used to determine if credit is granted, it determines the percentage rate that will be given for that account. Credit scores are also used in decisions for employment, promotions, rates for car insurance, deposits for utilities and prospective landlords plus much more. Know what you need to do to have the highest possible scores.

There are three credit bureaus that are pulled to obtain consumer credit scores. These are: Experian, TransUnion and Equifax/CSC Credit Service. Each bureau is a commercial business not affiliated with the government. They are multi-million dollar companies that operate for profit. The bureaus do not verify the accuracy on credit reports. The bureaus say it is your duty to prove the accuracy on your report. This makes credit history repair very important.

These bureaus make their money selling your credit report to others. They even sell your personal information to telemarketers and mailing list companies without your permission. A consumer with bad credit means more business for the bureaus. This type of consumer will apply for credit 10 times more often than consumers with good credit. It is very important to change your situation.

TransUnion and Experian will also sell credit scores to consumers but they are not FICO Scores. They are scores the bureaus have created for their own use. These scores can differ as much as 100 points from FICO Scores. Equifax does sell consumers the actual FICO Scores. The scores of each bureau will differ since each bureau has their own way for figuring them. Also, creditors do not always report to all three bureaus. You need your credit scores from all three bureaus in order to know what is going on with your credit and to be able to keep track of any changes on your credit report.

Take control of your credit today. Credit history repair is the answer. Learn what can be done for your credit situation. Go to and sign up for a free consultation.

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