RECIPE FOR A CREDIT SCORE
What is a credit score? To calculate a score, Fair Isaac uses 22 pieces of data collected from the three major credit bureaus, Equifax, Experian and TransUnion). The lowest possible score is 300, while the highest is 850.
The final number is a composite of individual ratings in five categories: Payment history (35% of the rating)
• Length of credit history (15%)
• New credit (10%)
• Types of credit used (10%)
• Debt (30%)
Income is not a factor. "A person can have a very high income and never pay their bills.” Fair Isaac calculates a FICO score based on the data provided by each credit bureau. It's not uncommon to see up to a 50-point differential between ratings. The reason: Bureaus collect data at different times of the month, and one bureau may have inaccurate information.
The higher the score, the lower the risk you are to a creditor and the less interest you'll pay. Only 13% of the population has FICO scores of 800 or above; the median is 723. There is no single cut-off for loans, however, and cut-offs employed vary from industry to industry. Generally, borrowers with scores above 740 receive the best rates.
To see how a change in your FICO score affects how much you'll pay, consider this example. On a $350,000, 30-year fixed mortgage, you'll pay 6.24% in interest and $2,153 a month if you score between 720 and 850. If your score drops to between 620 and 674, your interest rate jumps to 8.05%, and your monthly cost rises to $2,581. You will pay an additional $154,131 over the life of the loan, according to a calculator on myfico.com.
WHAT ARE INACCURACIES ON CREDIT REPORTS?
Since credit scores are so important, it is imperative that the scores be based on accurate information. However, inaccuracy problems continue to hurt individuals credit scores people with inaccurate credit reports will in turn have inaccurate credit scores. They are denied credit, or charged higher interest rates, at no fault of their own. Don’t be a victim of your inaccuracies on your credit report! Get help now.
HOW LONG DOES IT TAKE
Our credit correction program can take anywhere for three to ten months depending on how many negative accounts are on your credit report but you will start to see results in 30-45 days.
HOW MUCH DOES IT COST?
We offer a very affordable program that cost only $60 per credit line!
How do I send you my credit reports? After you sign up we will provide you with easy instructions for obtaining your credit reports and getting them to us. We will provide a link to annualcreditreport.com where you can obtain your credit report for free if you have not done so in the last 12 months. We cannot get your credit reports for you. Credit repair businesses cannot order credit reports for their customers. The Fair Credit Reporting Act (Section 604) prohibits the credit bureaus from furnishing credit reports to third parties. Don’t worry ordering your credit report does not hurt your score.
DO YOU SHARE YOUR PERSONAL INFORMATION WITH ANYONE?
We do not under any circumstances share, sell, or in any way provide your information to anyone ever. All your personal information is protected and kept confidential.
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