How Is My Credit Score Calculated?

We all have a Credit Score but how is this score Calculated? Credit Repair Mike in San Diego explains in detail how your FICO score determined and also shares some great tips.

What Items Are In Your Credit Report?

• Identifying information such as name, address, date of birth, and names of employers. Most of this data comes from information you fill out on credit applications.
• Trade lines – all of your credit cards and other accounts; the date that you opened the accounts, your credit limit, high balance, current balance, and payment history, etc.
• Credit Inquiries – voluntary and involuntary inquires including account review inquiries( from your current lenders), hard inquiries (for new loan or credit applications) and promotional inquiries (for credit card companies and other solicitation offers).
• Public Records (bankruptcies, foreclosures, wage garnishments, liens and judgments)
• Collection accounts.

Items That Are Not Included In Your Credit Score
Although this information may appear on your credit report, it is not taken into consideration for your credit score:

• Age
• Race, color, religion, nationality, sex or marital status
• Occupation, salary, employer, length of time employed
• Where you live
• Interest rates charged to you on credit cards or other account
• Any item reported as child support or rental history
• Certain types of inquiries (consumer initiated inquiries or promotional inquiries)

What Goes Into Calculating My Credit Score???

Call 619 734 9454 for more help

Payment History(35% of your score)

• Current payment record for car loans, mortgages, retail accounts, installment loans, credit cards, etc. on paid as agreed accounts
• Public records (bankruptcies, foreclosures, wage garnishments, liens and judgments)
• Severity of delinquency (length of time past due)
• Amount past due on accounts or collections
• Recency of delinquency or public record or collection
• Number of past due or derogatory accounts

Payment History Tips

• Pay your bills on time (new late payments and collections have the largest impact on the score.)
• If you are past due for any reason, Get Current! (The longer you remain current and pay your bill on time, the higher your credit score will be)
• Be careful about closing accounts (this may result in losing valuable credit score points associated with that account)

Amounts Owed(30% of your score)

• Amounts owed on revolving accounts
• Total amount owed on all accounts
• Number of accounts with balances
• Proportion of balance to credit limits on revolving accounts
• Proportion of balance still owing on installment accounts

Amounts Owed Tips

• Keep balances low on credit cards and other revolving accounts. A general rule of thumb is to keep your balances below 30% of the credit limit or high balance.
• Pay off debt instead of moving it around. (One of the most effective ways to improve your credit score is to pay down the balances on your credit cards or other revolving accounts. Owing the same amount but having fewer open accounts may result in a lower credit score. Keep as many of your revolving account below 30% of the credit limits of high balance. It may be beneficial to consolidate debt into one account, if you can get two or more account balances below 30% of the credit limit or high balance that were otherwise above that limit.
• Don’t open new accounts to increase your available credit. (This can backfire and actually lower your score)

Length Of History(15% of your score)

• Age of accounts
• Number of recently opened accounts
• Time since account activity
• Proportion of new credit vs established credit
• Re-establishment of new credit following adverse payment problems

Length Of Credit History Tips

• If you have a relatively new credit history, stay away from opening new accounts too rapidly. New accounts may bring the scores down temporarily, especially if you have a lack of credit or a lack of established credit history. Rapid account buildup can be seen as a risk factor.
• Re-establish yourself after prior payment history problems. Opening new accounts responsibly and paying them off on time will increase your credit score in the long term. This is not a suitable strategy for increasing the scores in the short term.
• Too many consumer finance companies can be seen as an adverse factor (creditors known to lend to consumers with less than perfect credit history).

Types Of Credit Used(10% of your score)
The number of various types of accounts (credit cards, retail accounts, installment loans, mortgages, consumer finance accounts, etc.)

Types Of Credit Tips
Apply for and open accounts only as needed. (Opening new accounts is not a short-term solution.) It is a good rule of thumb to have 3 open and active revolving accounts along with 1 to 2 installment accounts and one mortgage.

New Credit/Inquiries(10% of your score)

• Number of recently opened accounts
• Number of recent inquiries
• Time since inquiry
• Time since account opening
• Your credit score takes into consideration all of these factors. In some situations, one factor can have a larger influence on one person’s credit score. This depends on each individual credit situation and credit history.

Enroll Today.
We can get you Enrolled Today with our Affordable Credit Repair Today by Clicking Here. We Have:

• A 10 year track record
• An A+ Rating with the BBB
• A one time fee of Only $499 for a full 1 year service
• Removed over 680,000 negative items
• Over 167,000 satisfied customers
• Great Customer Service

Credit Inquiries

A credit inquiry will appear on your credit report when your credit report is pulled for purposes of extending credit or by your current lender for other purposes.

Hard Inquiries
These inquiries affect your credit score. When you apply for a mortgage, auto loan, credit card or other type of account, you authorize the lender to obtain a copy of your credit report. These types of credit inquiries, when prompted by your own actions, appear on your credit report and will impact your credit score. Avoid an excessive amount of inquiries. Excessive depends on the depth of the credit profile. More than 5 inquiries may be excessive for people with a lack of credit. If you are shopping for a mortgage or automobile and you know you will incur multiple inquiries, make sure you have your credit pulled within in a short, focused amount of time. Depending on which scoring system you are dealing with, you may have a 15 day, 30 day or 45 day window to shop for and apply for credit for the purpose of obtaining a mortgage of automobile financing, thus incurring inquiries without the inquiries counting against you separately. The scoring system recognizes that you are shopping and will count the multiple inquiries as a singular inquiry, if it falls within the allotted timeframe.

Account Review Inquiries & Consumer Based Inquiries
These types of inquiries do not affect your credit score. When you choose to pull your own credit report through an online resource, it is considered a consumer-based inquiry and will not affect your credit score. Also, many of your creditors or collection agencies have the ability to pull your credit report to review your account activity. Credit reports pulled by a prospective employer when applying for employment will not affect your score.

Promotional Inquiries
In many cases a company will pull your credit report in order to send you pre-approved credit offers or other promotional offerings. These inquiries do not affect your credit score. To prohibit the ability of creditors pulling your credit report for promotional purposes you must OPT Out by calling 888-867-8688.

Thanks for Reading
Mike Watson
http://www.CreditRepairMike.com
619 743 8884 Direct to Mike

Why is Credit Repair So Important

San Diego Credit Repair by Credit Repair Mike Why Is Our Service So Important?

Are you being turned down for home loans, refinancing, automobiles, department store cards, or even gas cards? Are you paying a higher interest rate than you should, or has your credit limit been lowered? Are you tired and embarrassed by the constant calls from creditors and collection agencies harassing you? Have you faced repossession or foreclosure? In today’s economic climate, a growing number of Americans suffer from negative ratings in their credit file including delinquent payments, judgments, collections, foreclosures and bankruptcies. Not only do these items prevent consumers from obtaining new credit when they need it most, clients may also face additional penalties such as increased interest rates on credit cards, higher late fees and over-limit fees, shorter grace periods and lowered credit limits. Call 619 743 8884 for info Most people with bad credit are not irresponsible, nor are they unwilling to pay their obligations. In fact, if you’re like most people, you probably maintained a good credit profile until an unforeseen circumstance like a layoff, medical problem, or divorce prevented you from making a few payments in a timely manner. The truth is that most people struggle long and hard to meet their obligations but the money coming in just doesn’t meet the bills going out. If the circumstances become serious enough, many people have been forced into foreclosure or to file for bankruptcy protection. More today than ever before, our increasingly tight credit market demands a high credit score. Why? Over three quarters of all lenders use credit scores when approving loans or credit. The importance of your credit score doesn’t end there. It’s also used to determine your interest rate, the amount of your down payment and the variety of mortgage types available to you if you’re buying a house, your ability to get a car loan, the premium on your auto or homeowner’s insurance, and even your ability to get a job. For example, some insurers are using low credit scores as indicators to identify individuals they believe are more likely to make claims against their insurance policies. These insurance companies maintain that there is a correlation between poor credit and filing multiple insurance claims. Last, but not least, if your credit score is on the low side, you’ll pay a higher interest rate on bank loans and credit cards, and may even see your credit limit decreased. Recent government surveys indicate that less than a third of Americans have viewed their credit report within the past year. Many more do not know their current credit score even though financial experts constantly advise consumers to review their credit reports for accuracy. A recent survey revealed that nearly 80% of all consumer credit reports contain serious errors or mistakes of some kind. This prevents millions of Americans from being able to purchase homes or automobiles, or finance other goods or services they need. You, very likely, could be one of those people with inaccurate information. Additionally, many people are paying astronomical interest rates, or have been denied financing unnecessarily due to low credit scores. Because your financial health revolves around your credit score, it is important that the information your credit report contains be as accurate and up-to-date as possible. Millions of inaccurate items have been removed from consumers’ credit reports since the Fair Credit Reporting Act was passed in 1971. Why shouldn’t YOU join them and start saving money right now?   Thanks for reading Mike Watson www.RaiseMyCreditScore.org

San Diego Credit Repair – Dealing With Creditors

Dealing With Creditors

By San Diego’s Most Affordable Credit Repair http://www.CreditRepairmike.com Getting out of debt takes budgeting, discipline and doesn’t happen overnight. Click to Enroll Today Be honest with your creditors about why you are behind in your bills. If you’ve been ill, lost your job, or simply overspent, say so. Creditors are eager to work with people who admit they are in trouble and need some help working things out, however not so with delinquent customers who ignore their calls. You’ll find it easier to gain extensions by approaching the creditor first, before the late hit. By contacting the creditors first, it demonstrates you care about your financial obligations. After the initial contact, it’s important that you keep in regular contact with creditors—every two weeks or so. This reassures the creditor, shows a responsible attitude toward your obligation and may keep the creditor from harassing you. The moment you become aware that your income will be reduced, contact those creditors who’ll be affected. Your first contact should be by phone, followed by a letter confirming your phone conversation. Discuss a plan to maintain your payments until you are back on your feet. Collection agencies have heard every excuse imaginable. They also have, however, a sixth sense that helps them determine a debtor’s sincerity in repaying a debt or obligation so be honest. Attitude is important. If necessary, acknowledge, up until now, your poor handling of finances. Re-affirm your commitment to handling your finances differently now. Don’t make payment commitments you cannot honor. Do not tell a collector “what they want to hear”; just to get them off the phone. Your cooperation with them will make a difference in what they report to credit reporting agencies, especially if they receive partial payments. Contact the court if you are making child support or alimony payments under a decree of divorce but are unable to meet the payments due to unemployment or severely reduced income. Contact the clerk of the divorce court and explain your situation as soon as possible. Stay in touch with your ex-spouse to avoid unnecessary legal action. Failing to notify the court of your inability to pay can result in legal problems. Follow up with a written letter of explanation. If ordered to court, contact an attorney. Bring documentation (pink slip or lay-off letter from your employer or union) with you. Do your best to provide what support you can—and keep records. Missed child support payments must be made up. Talk to your ex-spouse or court officer about a repayment plan. Utilize the letters below when working with your creditors. Make sure to keep a copy for your records. Thanks for reading Mike Watson http://www.CreditRepairMike.com 619 734 9454 7349454@gmail.com Name(required) Email(required) Website Comment(required) Submit Δ

Divorce And Your Credit

By Mike Watson and http://www.CreditRepairMike.com Divorce involves many complicated issues, such as support, alimony and property division. But who gets custody of your good credit? Divorce can prove financially as well as emotionally stressful. If you find yourself faced with a divorce, it is important to start planning your financial future now. Follow these 10 guidelines to help maintain your good credit when going through a divorce:

Know your current credit and debt situation. Obtain copies of your credit reports as well as your spouse’s credit reports. Make a list of all debts and decide who is responsible for each account. Have a plan. Your divorce decree should state what will happen (frozen assets, wage garnishment, etc.) if your spouse stops making payments. Make sure you have quick legal recourse if your spouse stops paying, and ensure your ability to make those payments yourself if necessary. Open a checking and savings account in your name only. Get at least one individual credit card and utility in your name only. Pay off all debts. Sell or refinance your house or other assets to cover outstanding debts, if necessary. Close joint accounts. Request that joint accounts be placed in the responsible party’s name only as an individual account. If joint accounts cannot be reverted to individual accounts, then freeze joint accounts and tell the creditor that you will not be responsible for any more charges after that date. Remove all authorized users from your individual accounts – that especially means your spouse and his or her family members. Authorized users are not obligated to pay back any charges they make. Don’t stop paying the bills. Keep making regular payments during the divorce process. Don’t wait until you’re in a crisis situation. Get your financial situation in order before you file for divorce. Contact your creditors. Your creditors are not a party to your divorce decree and are not legally bound by it. If your spouse fails to make a payment for a joint account, the creditor can and will pursue you for the money; it also will appear on your credit report. However, the creditor may enter into a separate payment arrangement with you or take your name off an account. Creditors are not required to change joint accounts to individual accounts. A creditor may require you to reapply for credit on an individual basis or refinance a mortgage in order to remove one spouse from the loan obligation. Get all agreements with creditors in writing. Make notes of all phone calls including names, dates and the topic of conversation. Don’t have your name removed from any title if you are still responsible for the loan. Divorce is difficult even under the best of circumstances. Pay attention to credit issues before a divorce, and you can make the divorce process easier and relieve much of the stress.

Individual accounts: You are responsible for paying any debt in your name, whether you are married or not. If you live in a community property state, both you and your spouse may be responsible for debts incurred while married. Individual debt of one spouse may appear on both your credit report and your spouse’s credit report. Joint accounts:  Both you and your spouse are responsible for paying the debt. This is true even if your divorce settlement states that one person will be responsible for the debt. Joint debts are reported to credit bureaus in both names. Authorized users: You may authorize another person to use an individual account in your name, but you are responsible for the entire debt. If you are an authorized user on another person’s account, you are not liable for the debt. However, the debt still may appear on your credit report. Thanks for Reading Mike Watson Credit Repair Expert 619 734 9454 7349454@gmail.com www.CreditRepairMike.com Name(required) Email(required) Website Comment(required) Submit Δ