FICO 720 or above No problems or collections in the past 7 yrs.
Good Credit
FICO 680 – 720 Minor problems in past 7 yrs.
Fair Credit
FICO 620 – 680 Some late payments, collections or liens in the past 7 yrs.
Poor Credit
FICO is below 620 Credit history of late payments, collections, bankruptcy, liens
or judgments within the past 7 yrs
This page highlights myths concerning credit (FICO) scores and on the
bottom of this page a website Powerpoint video is featured which
provides examples of how powerfully a better FICO score can help you
achieve your financial goals. Our other two website pages focus on the
following. Credit Scoring Process details what data is used to arrive at
your credit (FICO) score. Credit Card Quotes are quotes culled from the
most credible consumer magazine on the market - Consumer Reports. In
their November 2005 issue there is a 4 page scathing review of the very
disturbing and largely unreported business practices of the self
policing credit card industry in 2005. This page is a must read if your
credit card balances are over 30% of your allowed credit limit.
This website Powerpoint video
overviews your benefits. It takes up to 15 seconds for this video to
start and it will play for 5 minutes. You can pause or go forward or
backwards from any slide within the presentation.
Common Myths about
Credit
Myth:
Negative credit remains on your credit
report for 7 years. It cannot be changed. FACT: The law does not require
that bad credit be reported. Credit bureaus do it to make money. A
creditor can change it. Federal Law requires the credit bureaus to
permanently delete information which, after reinvestigation, is found to
be inaccurate, incomplete, or can no longer be verified.
MYTH:
It is impossible/takes forever to dispute
information on my credit file. FACT: By law, the bureaus have only 30
days to complete an investigation on your credit file — all you have to
do is request it!
MYTH:
My bad credit will haunt me forever.
FACT: By law, negative information can only stay on your credit file for
seven years (bankruptcies for 10 years). Also, the past 24 months are
the most sensitive
— older negative info will hurt your score less than more recent
information
MYTH:
It doesn’t matter when I pay a collection, because as soon as I pay it
will be removed from my credit report. FACT: Its best to pay a
collection as soon as you’re aware of it. If you wait to pay a
collection, the date will remain current affecting your score more
severely. Also, paying it does not remove it, it will remain on your
file as a paid collection, which is still a derogatory item.
MYTH:
My score will drop if I apply for new
credit (inquiries). FACT: Inquiries are a very minimal part of your
score calculation. Also, multiple inquiries from mortgage or auto
lenders within a short period of time are typically treated as a single
inquiry.
MYTH:
It doesn’t matter how high my credit card
balances are, as long as make my payments on time. FACT: Maxed-out
credit cards are viewed as a negative item. Try to keep balances at or
below 30% of your available credit. read the page Credit Card Quotes to
get motivate to keep balances down to 30% of your allowable maximum
credit card limits.
MYTH:
It’s a good idea to open up an account if
I’m offered a discount at the store or 0% interest for a few years.
FACT: Opening up a new account through a finance company has a negative
impact on your score. On top of this, it will likely be reported as a
maxed-out revolving account — another negative factor!
MYTH:
I should close out old accounts that I
don’t really use anymore. FACT: Those old accounts show nice long
payment histories and add positively to your credit. Your score is based
on both positive and negative credit Keep them open and use them every
six months or so just to keep them active
MYTH:
If I cosign on a loan, it wont affect my
credit. FACT: By cosigning, you are signing on as a responsible party
for that loan. It will affect your credit
MYTH:
Lenders will judge me based on my credit score alone. FACT: While a
credit score is an important factor lenders also look at factors such as
your debt, income and employment history.
MYTH:
If I dispute my information on with one
bureau, they will send the updated info to the other two.
FACT: The bureaus don’t share information, so its up to you to contact
all three bureaus. The three credit bureaus are Experian, Equifax and
Trans Union.
MYTH:
Paying an old bill removes the negative history. Fact: Paying an old
debt does not remove the negative credit listing. A paid negative
listing is usually no better than an unpaid negative listing.
When applying for a mortgage refinance an average is taken of the 3 most
popular credit bureaus and mortgage lenders require that it be no older
than 2 months. Many mortgage lenders will also run your credit once last
time just before issuing your loan. DO NOT BUY A CAR OR GET A NEW CREDIT
CARD when applying for a mortgage - do it AFTER you have the mortgage
funds.
There are several ways to improve your credit. The fastest is is after
our review it is determined that there are actual errors on any of your
credit bureaus. We have partnered with what we believe is America’s
finest credit (FICO score) restoration service. Over 90% of our
recommended clients using this service have had their FICO score raised.
One option is to only pay per item for the changes made on your credit
bureau – AFTER the changes are made.
Pay no money upfront.
100% performance based - pay only
upon performance.
You pay per item changed per
credit bureau based upon an agreed fee in advance on any work done.
