Credit Secrets You Should Know
A credit score is a statistical tool for estimating the likelihood of a borrower repaying a loan at a given time based on the data available in the credit report. Scores range from 300 to 800.
Understanding your credit score is a great idea for a number of reasons, especially as you think about buying a home. Eligibility for a home loan is greatly affected by your highest credit score possible and knowing how good or bad your credit score is is an important first step on the path to home ownership.
Here are 10 credit secrets you Should know.
1. Credit Scoring Features: The features provided with each score are important. See what your factors say below each score. The easiest way to deal with this is to balance the debt on the ratio. Bureaus look after any stockpile and move around.
Payment date (trade lines and public records):
Negative impact through defaulted credit (ie bankruptcy, prediction, deposit, recent late payment)
Rotating Debt Ratio (Debt Total Credit Limit)
Pay balance below 30% of loan limit
Increase credit limit
Transfer the balance to an acceptable card
Length of credit history
How long have accounts been established?
How many days have passed since the accounts were used?
Credit inquiries and new accounts
Number of accounts currently open
Number of new accounts opened
How recently new accounts were opened
Recent Inquiry
Types of Reputation
Credit mix
Types of accounts
2. Each Bureau (Expert, Ecofax, and Trans Union) scores consumer credit data in a slightly different way: In general, FICO scores are as follows:
Payment date (35% of your score): Even if you have made timely payments to previous credit accounts.
Amount owed (30% of your score): The amount of credit and loans you are using.
Length of credit history (15 of your score): How long have you been in debt?
New Credit (10% of your score): Frequency of credit inquiries and new account openings. Credit Mix (10% of your score): A combination of your credit, retail accounts, installment loans,
finance company accounts, and mortgage loans.
3. Score changes:
The credit score may change whenever the credit report changes. In fact, it may change every day depending on when a personal lender is notified. These changes are usually minor. With the following exceptions: Bankruptcy, forecasting and late payments have the greatest impact and they can change the score quickly.
4. Score improvement:
Know your facts.
Pay your bills on time!
Keep balance on credit reports below 30%.
View retail / finance credit inquiries.
Ask lenders to remove the lettuce.
Negotiable Deposits - Offer to pay for deletion of credit report.
Don't borrow from high risk finance companies.
Do not close roaming accounts.
Do not pay old collection accounts before withdrawing credit. Do not open a new loan during the loan process.
5. Rules:
Bankruptcy (Chapter 7) - 10 years from the date of filing
Bankruptcy (Chapter 13 Completed) - 7 years from the date of filing
Bankruptcy (Chapter 13 not completed) - 10 years from the date of filing
Civil Decisions - No more reports
Addition - 7 years from the first incorrect date
Collection (Medical) - 7 years from the first incorrect date
Credit account without limits
Credit account with corruption - 7 years from the date of crime
Tax Compensation (Unpaid) - No further notice
Tax Compensation (Paid) - No longer reported
6. Mistakes:
Always look for mistakes when you check your credit report. It is important to review and resolve them so that they do not negatively affect your credit score.
Errors appear on a credit report for the following reasons.
Apply for credit under different names.
Clerical errors.
Open debt or credit card payments in a nickname will create a file with the bureau.
7. Collection agencies:
These agencies will eliminate paid receipts. It can never hurt to ask. The portfolio will remove all types of stock they report. To improve the score, a lot of times, it takes!
A-1 Collection
AFNI
AFS
ARS
Asset maintenance
Bill City
Capio
Choice recovery
CMRE
Commonwealth
Compatible
CX
Debt recovery solutions
ERC
IC systems
Medicaid
Paramount
PMAB
Portfolio
QAR
Affordable management
Wakefield
8. Mortgage loan:
Versions approved by Fannie Mae and Freddie Mac:
Each file has its own DNA. What works for one end user may not work for another. With years of experience, we've identified some of the Bureau's individual trends.
EcoFex FICO Score 5 (also called EQ-04 or Bacon 5)
Offensive accounts of scores are generally more rigorous than versions 2 and 4. Abandoned when paying off offensive accounts and will usually take 3-6 months to recover. Expert FICO Score 2 (also called EX-98 or Risk Model V2)
A late payment usually scores less than 5 FICO scores. Scores often expire immediately after compensation payments and other types of offensive accounts payments, especially when away from roaming.
TransUnion FICO Score 4 (also called TU-04 or TransUnion FICO Risk Score Classic 04)
Multiple aggregates will usually count as one account. There is a tendency to score more offensive utility accounts. Earn points by revolving charges and paying utility accounts. There is often no improvement in deposit payments. Different forms of credit score were not approved by Fannie Mae and Freddie Mac
Each lending industry has its own FICO score model that meets its criteria. Consumer Purchase Credit Scores are often scored using FICO Score 8 or Vintage Score 3.0 FICO Score 8: Expert Boost does not help score in the lending industry!
One time late payment compared to previous FICO score version
When calculating the FICO score, all versions of the FICO score include the user's authorized credit card account. However, the FICO Score 8 significantly reduces any of the benefits of the so-called "trade line rental". It is a credit repayment practice that lures consumers into a stranger's credit account in order to mislead lenders into misrepresenting their credit risk.
Promotion: Allows users to report their current utility bills and other monthly obligations to increase their score. For customers with limited or no credit, the service allows users to selfreport alternative credit, which is available to all lenders when they draw up a consumer report. It won't help your mortgage FICO score!
Vintage Score 3.0: (ie Credit Karma)
Payment date - 40%
Age and type of credit - 21%
Percentage of credit used - 20%
Total balance / loan - 11%
Recent Credit Behavior and Inquiry 5%
Credits available - 3%
Late mortgage payments are usually penalized more severely than other types of credit. In most cases, ignore the payment account regardless of the actual balance.
9. Tour Downs:
The ECOA gives each person who has been denied or denied credit the right to receive reasons within 30 days. Once a year, get a free copy of your credit report from your three major bureaus (Expert, Ecofax, and Trans Union) on UnalcreditReport.com.
10. Dispute Resolution:
Is there a dispute over your credit report that you want to resolve? Check your credit report for this dispute and then contact the credit bureau to request that it be removed:
Expert: 800-493-1058 (Option 3) Survivor. You will need a National Consumer Support Center to resolve the dispute. Their working hours are from 8 AM-5PM PST. Conflicts may take up to 72 hours to resolve (email confirmation)
Equations: 404-885-8300 or 800-203-7843. Living person You will need to talk to someone in the Executive Consumer Services Department. Conflicts can take up to 72 hours to resolve. Trans Union: 800-916-8800. Automatic greeting Stay in line and move someone alive. You will need to talk to someone in the special handling department to resolve the dispute immediately. Make sure the bureaus are aware that the request is to terminate the existing action and not to initiate a new dispute.
In addition to calling the bureau, contact the lender to let them know that you are no longer discussing the account (s). This will prevent future conflicts from being reported again.
