So Many Scores so Little Time

There are lots of different credit scores offered on the web. If you are starting a credit repair program you may want to benchmark your scores. So you are likely to go online, pick out a website and pay the price. Unfortunately, the odds are that the scores you purchase will have no resemblance to the scores a lender will use to underwrite a loan.

The Real Scores

There is only one website where you can purchase the same scores lenders use; this is MyFico.com, the website for Fair Isaac Corp the developer of the FICO scoring model. As a credit repair consultant it is a matter of daily consternation to me that the same credit bureaus that sell these important FICO scores directly to lenders will not sell FICO scores to consumers.

The Wrong Scores

You can purchase credit scores from Experian, Equifax, and TransUnion, but they are not FICO scores, and therefore of no real credit repair value. These credit bureau scores are of their own creation and exist solely for the purpose of cashing in on the ignorance of consumers. I cannot imagine any scenario where there would be no moral culpability on the part of the bureaus.

No Practical Application

I have heard it said that although these bureau scores are not the same as FICO scores they are a way for consumers to track changes in their reports. This is not so. The bureau scores just don’t behave the same way. In other words, changes in your credit affect your FICO scores differently that they do the bureau scores. These bureau scores have no practical application, for credit repair or otherwise.

The Equifax Exception

For the record, Equifax offers the only credit repair friendly credit score. In fact, they do offer a FICO score. They currently use a previous generation of the software, and they only apply it to their own data, but it will generate a close approximation of your real score and generally behaves the same and could be used to monitor credit repair progress.

Measuring Credit Repair Progress

Unfortunately, this one credit bureau nod to integrity does not provide an optimal credit repair solution. You should know that many lenders, and all mortgage lenders, purchase all three FICO scores and use the middle of the three scores. An accurate measure of your credit repair status requires all three scores.

Ask Your Lender for Your Reports

Given that lenders are able to purchase FICO score from the credit bureaus, you may have a roundabout way of getting your hands on a real tri-merged report with all three FICO scores. If you recently applied for a mortgage you may consider contacting your lender and asking for a copy of your report. Tri-merged mortgage credit reports are usually quite detailed and ideal for credit repair purposes.

Bend the Rules Just a Bit

By the book, lenders are not supposed to provide copies of reports directly to consumers. This is standard boiler plate language included in lender agreements with their report provider. The Fair Credit Reporting Act includes an information sharing clause; in the case of credit denial consumers are entitled to a copy of their reports, but this is a hassle compared with calling your lender and asking for the small favor.

Credit Repair and Your Reports

If you want your credit scores to establish a starting point for your credit repair effort I should say a bit more. If you go to MyFico.com to purchase your credit scores they will come complete with your three credit reports. Unfortunately, as if happens, even though Fair Isaac is the only source for your scores, they do a terrible job on the credit reports.

Fair Isaac Report Problems

MyFico.com credit reports are edited to the point of being useless for credit repair purposes. This is especially true if you intend to investigate all the information that should be available on your reports. Fair Isaac reports are highly sterilized, and in many cases actually exclude your account numbers, which you may need for your credit repair effort. So, for credit repair purposes you should get your reports from the credit bureaus. Phew!

Making Do

If it all seems crazy and unfair remember that the credit bureaus have the credit data, and Fair Isaac owns the credit scoring software. Everyone wants to make money and until they figure out a better way to work together we just have to make do as best as we can. Good luck!

Copyright © 2008 Ian Webber. All Content. All Rights Reserved.

Ian Webber
http://www.articlesbase.com/credit-articles/credit-score-secrets-exposed-691840.html

College students are running up an alarmingly large amount of credit card debt these days and it is only increasing with the passage of time. The average undergraduate student carries $2,500 in credit card debt and by the time they graduate from college, they are beginning their new lives in the “real world” with debt that they can’t pay.

Students figure: I’ll live like I want to now and then when I get a job it will be easy to pay it back. This is often not the case. Lower-than-expected salaries, plus higher-than-expected living expenses and hefty student loan payments, make handling credit card debt all the more difficult for students and recent grads.

And the worse part about college students having so much credit card debt is that it takes so long to pay it off. Even if they are able to make the minimum payments, by sticking to minimum payments it would take a student more than 12 years and $1,115 in interest to pay off a $1,000 bill on a card with an 18 percent annual rate. If students fall behind in their payments, they get slammed with high late fees. And it’s easy for things to get out of hand.

Of course, there are two sides to this story. Most college students start out with little and even no credit, so having a credit card seems like a good idea so they can start building a credit history in anticipation of owning a new or better car and even, someday their own home. Except for if they haven’t been warned of the dangers of using credit cards or are especially naïve, this could be a bad move.

Credit card debt for college students affects many, many aspects of their college lives. They can’t pay their bills regularly and find themselves short of cash. Plus, it can affect their ability to secure a student loan which can be crucial with ever-rising tuition rates. And parents should beware of putting their college student on their own credit cars as an authorized user as the same debt can pile up under the parents’ names and cause some serious credit problems.

Armed with the right information, many students are able to establish credit and steer clear of card debt. Even though college students do carry credit card debt, 54 percent of college students pay off their credit card balances every month. Most tend to be responsible and use the card wisely.

However, some of them don’t and they’re getting into trouble. If a person makes it through 18 years of life without any financial wherewithal, it’s very difficult to change their behavior and that’s why it’s so important that parents speak to their children about money management. To keep a college student out of credit card debt, the key is teaching students money management skills before handing them a credit card.

When it comes to credit repair when you have found yourself in a bad credit situation, self-help might be the best route for you to go. It seems we are bombarded daily and often with companies who claim that they can help you repair your credit for a small fee and you won’t have to worry about it at all. However, the truth is that self help credit repair is not only possible, but really the way to go.

It isn’t as difficult as many people might think going about repairing your credit yourself. In fact the newest trend in credit repair actually the self help road. All you need to do is start by pulling a copy of your credit report from all three credit reporting bureaus: Experian, Equifax, and TransUnion. You are entitled to one free credit report per year thanks to passage of the FACT Act. The other two, you’ll have to pay for, but the fee is usually small - between $10 and $15.

After you get your credit reports, the next self help step is to go through those reports and check to see that the information is accurate. Most of the time, there are going to be errors of some type. These errors can vary from a past due account that has been paid off to a debt that wasn’t yours in the first place.

If you find errors, you need to contact the credit reporting agency both by phone and in writing. You’ll be asked to provide proof of the error and then they, in turn are required to notify you in writing of their decision to either remove it from your credit report or leave it due to insufficient proof. Be diligent in this endeavor. An accomplished self help credit repair program entails being aggressive when it comes to your information and the accuracy of that information.

Another part of a self help credit repair program includes the development of a long-term plan that will help you keep your credit use under control and a plan for not getting into credit problems again. Sure, credit counselors can help you do this, but why pay the money and take the chance that you are dealing with a less than reputable company?

Do a little research and you’ll find that there is plenty of information available on the Internet as well as software programs that can help you with your self help credit repair program. Repairing your credit yourself requires a commitment on your behalf, but in the long run, you’ll be pleased with the results - and knowing that you did it yourself!

Alphonso Smith

A lot of people can find themselves in a very difficult situation simply because they made some financial mistakes in the past. A lot of prime financial institutions require you to have high credit score and spotless credit file to be eligible for low interest lines of credit or even for a credit card. But what about consumers that made bad financial decisions, overextended their ability to pay back their creditors and had to file for bankruptcy? Even if you had to go through credit counselling services and paid back your debts, but did not fulfil your contractual obligations with your creditors, you credit worthiness is ruined.
If you’ve gone through a bankruptcy and credit counselling program, you will have to rebuild your credit before any kind of credit will be extended to you. Rebuilding your credit can be a lengthy process and requires time and patience. First thing that you should do is to obtain your credit file from main credit reporting agencies. There are two main credit reporting agencies which are: Equifax and Trans Union. Obtaining your credit report is not a very difficult procedure and can be done instantly online for a fee between $15-$40 dollars or free of charge by mail. In order to obtain you credit report by mail you will need to fill out an application form (that can be downloaded from www.transunion.ca and www.equifax.com) and attach 2 pieces of id and a utility bill. You can either mail or fax your application to credit bureaus. It usually takes 7-10 business days to receive a copy of your credit file by mail. Once you get a copy of your credit file you should look for any discrepancies. If you declared bankruptcy and were discharged, all former creditors have to stop reporting to the credit bureaus after the discharge date. The same should happen to any collection items if any have been reported on your credit file. If you find any discrepancies you can download and fill out a dispute form from www.transunion.ca and www.equifax.com and submit it to the credit bureaus. Credit bureaus have to investigate your dispute and make appropriate corrections in your credit profile. Once all the discrepancies are eliminated, you will have to wait some time before all previous activity is removed from your credit file so you can start rebuilding your credit from scratch. If you went through a credit counselling program, it will take about 4 years after your program is completed for all the R7 accounts to be removed from your file. If you filed for bankruptcy it might take up to 10 years for the bankruptcy to be dropped from your credit file.

Once your bankruptcy has been discharged you should get a secured credit card and make your monthly payments on time. After a year or two you bank might release you security deposit. However for the next 7-10 years you will not qualify for car loans, mortgages or lines of credit with prime financial institutions and will have to use services of subprime lenders. If you need quick cash advance (up to $1000) to pay an unexpected expense you can apply for a payday loan. Payday loans are short term loans that are available to consumers in cases of emergency and at times when there are no other financial options available. Those type of lenders have high interest rates but if you do not have perfect credit rating you can still qualify for a loan with them. Some subprime lender report your timely loan payments to Credit Bureaus and some not (payday loans companies do not usually report to credit bureaus). You should double check with lenders before you apply for a loan. It is better to get financing trough a lender that will report your timely payments to the Credit Bureau as it will positively impact your credit score. Do not apply for a loan with numerous institutions at the same time. Numerous inquiries on your credit file will alert lenders and will lower you credit rating even more. Everything has a price and you will be paying for your past mistakes by having to pay high interest rates.

Dennis Sabitov
http://www.articlesbase.com/loans-articles/how-to-rebuild-your-credit-using-services-of-subprime-lenders-and-payday-loan-companies-718377.html

I rec’d a letter from my Health Insurance Company that a disk from their computer system was stolen. They have forensic evidence that (verbatum) :my Name, Identiy information, Financial records and Medical History with them has been taken from their computer systems. I have been a victim of Identity Theft since 2006 and both Chase Bank and Citibank have been working with me to correct my eronious credit reports with all three of the National Credit Bureaus. I have been a paying member to both Chase and Citibank Identity Theft Protection program for a couple of years and thank God they both sold me on the idea of paying the nominal $10.00 a month for this service. I have been a member of these programs for a couple of years. They have to-date helped me remove 7 different fraudulant credit cards with the use of my private vitals such as name, address, SSAN, etc.
I just received this letter from my Health Insurance Company in regard to my file being taken from them late last week. It states that any information from 2002 to 2009 is gone. I have spent hours trying to keep my Credit rating good while paying fraudulant bills and attempting to
CCOMPLETELY clean up the false information on my Credit reports from Transunion, Equifax and Experion. And without the help of my Identity Theft Protection accounts doing most of the work I would literally be in ruin. I pay every bill on time and sometimes even more. I have lost so many hours of my life and moneys that learning this from my Health Insurance Company makes me want to sue them . What kind of Lawyer? Should I? Who do I call? The FTC? I am sure there must be other clients along with me that were on the disk that was stolen and by law they had to notify me. I have lived my last 25 years in Manhattan but am currently in Alabama caring for my 86 year old Mother if that means anything. Many thanks to you in advance.

There is nothing over which to sue unless the stolen disk causes you further identity theft issues. It is entirely possible that the disk is only MISSING, and that no nefarious intent is intended. Continue to monitor your credit files with the assistance of Chase and CitiBank. If more issues turn up, advise your health insurer that the missing information is causing you issues. They will provide assistance as well.

My credit scores are 724, 691 and 684 for Transunion, Equifax and Experian respectively. The only issue I have is that my Equifax report shows eight inquiries within the past two years (an identity theft issue that I cleared up but haven’t got around to getting the inquiries removed). The others show only llike three or four. I also don’t have much revolving experience on my reports. I had one credit card in 2002 which I closed within six months in good standing. I have three auto loans, two of which are paid and my current one for which I have never been late on a payment. I also have one personal loan that has like two or three more payments left. What wouild be the best lending institution to apply for a credit card through. I’m not a big fan of annual fees and would be interested in some type of member rewards program.

Try getting a free online auto loan quote. http://www.autoadvicetips.com/Auto-Loans.html The questionairre will give you results based on your credit and financial situation. It’s free and you can get an answer in minutes.

658 is transunion, 582 equifax… experian is not known.

I am disputing 2 things on my reports as they are fraud and i recently opened a secured visa account that reports to all agencies.

What’s next? wait it out a few months or go after a mortgage now? i know the program (tax credit) ends in May so i need to do whatever i am going to do prior to that as i would be a first time buyer.

is it possible to get FHA with those scores? who do i contact now? any other sound advice?
one more thing… i only make 31,500 per year, how much would i qualify for? 60K is fine around this area as there are A LOT of empty houses in my area.
My Experian "VANTAGE SCORE" is currently 618…

i expect my scores to go up a little in the next 3 or 4 months as i am working to improve these by establishing credit (secure card) and have disputed 2 things that are absolutely not mine on the reports (phone company frauds)

Talk to a mortgage broker for information on what you can qualify for if anything. If you can’t qualify now they will be able to tell you what steps are needed to improve your credit scores.

I am a 25 years old single mom with a stable job and an income of 50000+. However, I have poor credit. My credit score is at a 621 with Experian, 580 with Equifax and a 531 with Transunion. I want to learn more about purchasing a home and first-time homebuyers programs and financing. Should I go through these homebuyer programs? For example, Acorn Homebuyers program or OPeration Hope. Do anyone have any suggestions or experience they want to share? Some people say it’s worth it and they bought their home through the program. But I am confused what do they do. How do they help with your credit? Do they help you save money? Basically what’s the big deal with joining a program. Can someone please help me understand this whole process?

I don’t want to go sit for 4 hours at a seminar that is totally not worth it.

I have found most people have liked this program due to the following reasons:

1. Few people buy their first home with the intent of selling in a few years; but sometimes, due to unforeseen circumstances, this is what happens. What would the repercussions be in two or three or five years if you had to sell?
2. Paying down the principal with "windfall"s or "…a little here and a little there…" —is technically correct and basically great advice. But, do you have the discipline to do this?
3. Your gut is telling you to go with the 30 year conventional loan—unless someone presents a compelling case otherwise, trust your instincts.

"…please discuss you concerns with your loan officer. If he/she is not of sufficient assistance, hire a new one. This is an important decision; you must be comfortable with your final choice no matter what happens in the future.

Humbly,

Posted

Devin Willis

I bought it last march(doh) but never figured out how to use it. I think I was supposed to go online and create a login somewhere but I never had time. Anyway the question is, how does it compare to trucredit and equifax 3-score watch and the myfico program. Does anyone know the pros and cons and more importantly the features that you get with it? I am thinking of cancelling it but just wanted to at least know what I am cancelling before I do so lol. btw I pay $7.99 a month for it if that helps anyone identify the service. And all it shows in my statement is "CREDIT SCORE TRACKER 888-201-1440 UT" next to the price with no url or anything.

Hello,

The CST package features:

- Unlimited 24/7 access to your Experian credit report and score.
- E-mail alerts to changes in credit score/customized score alerts to know how you are progressing towards your goal
- Simulations showing how different factors affect your score (timely payments, credit inquiries, opening/closing your accounts)
- Score tracking tools to see how your score changes month to month and how it compares to your target score

Hope this helps!

—
Brad

the problem is simple my fatther and i have the exact same name only the different middle initial

he is H.G.M
i am H.C.M

i just turned 18 a while ago and am now trying to set up credit. so i asked my bank to first enroll me in a credit monitoring program. and this is where the bad begins, after enrolling in the program they found that my credit (which i have none) and my fathers have been mixed in all the 3 institutions, equifax, trans union an the other one. now my father has bad credit so it is being applied to my social security as well as his. and when i access the report, all of his debts come up under my name as well and it shows his birth date instead of mine. My question is how do i go bout changing this because my bank was no help whatsoever.

Your bank has nothing to do with it. You must dispute all erroneous entries on your credit records with the credit bureaus. Submit documentation showing that you are "HCM" and the debts posted on your record are "HGM’s." See the respective websites for dispute procedures (Experian, TransUnion and Equifax).

experian - 716
equifax- 689
transunion - 680

which one will they use, i want to sign up for a certain program but they said i need a score over 700

This should help explain it to you.

FICO scores from 300 to 850 and Vantage scores from 501 to 990.

Here is the breakdown for both systems.

Vantage Plus system scores from 501-990.
A-901-990
B-801-900
C-701-800
D-601-700
F-501-600

FICO system scores from 300-850.
Elite-740-& up
Prime-700-739
Preferred-660-699
Standard-625-659
Sub-prime-624-& under

FICO is the only one that matters since it’s the one that all major lenders look at.

So as you can see it depends on if your looking at a true FICO score or a Vantage plus score.

As far as what makes up credit scores it’s the following;
1. Payment history (longer the better) 35%
2. Time in bureau (longer the better) 15%
3. Types of credit (mix of credit cards & installment loans) 10%
4. New credit (new accounts and inquiries) 10%
5. Debt to credit ratio (lower the better) 30%

And just so you will know Experian only uses Vantage, Equifax only uses FICO and Transunion uses both depending of which type of credit report is requested of which there are 3. The standard that people get from The Internet, the auto enhanced which only car dealers and lenders see and the factual which only mortgage people see. The last two are not available to the general public.

To have the very best score and profile people need 3-4 credit card accounts (revolving) with balances below 30% of their credit limits and 2 cars, homes, boats, motorcycles, computers, furniture or personal accounts (installment) all with good long payment history’s.

So having said all of the above, it’s really going to come down to which credit bureau your creditor subscribes to. If they use Experian your fine but since they do not generate a FICO score I would not count on that happening. Most likely they will look at Equifax, thay are the most common and give true FICO scores.