Credit Score Help
Your Financial Life
Get credit score help, because your life may depend upon it; your financial life that is. Your credit scores are increasingly being used for purposes that have nothing to do with obtaining credit. However, these new uses of your credit scores have a significant impact on your financial life.
To learn more about how to improve your credit scores, complete the form below to receive your FREE download of my eBook titled "What Everyone Should Know About Credit Scores".
Get Credit Score Help because your job may depend on it...
Employers use your credit information for hiring and promotion decisions, landlords use credit scores as rental criteria, and insurance companies use credit scores for assessment of insurance premiums. Some utility companies (like TXU) have made plans to use credit scores as a means of determining energy rate charges for customers. So now there are even more reasons for you to get credit help.
One of the newest yet most influential players in the credit industry is Fair Isaac Corporation or you may know them as FICO. If you've ever tried to get credit help for a mortgage loan, car loan, insurance, or credit card you've probably heard of the FICO credit scoring model.
Although there are now several other credit scoring models, Fair Isaac Corporation actually developed the first scoring models in the late 1950's. But credit scores didn't really start gaining much attention for the general public until the late 1990's when mortgage lenders started using credit scores to underwrite mortgages.
This was a big deal in the credit industry because it was the start of "automated underwriting" and credit decisions whereby businesses began to use computers to make credit decisions without any human involvement in the decision making process.
Credit Score Help Guidelines
Basically, a lender sets guidelines for credit approval or denial. If your credit scores meet the minimum number required for granting credit you get approved, if not, you're usually denied; pretty simple right? This is when you know you need to get credit score help. Many creditors loved it because it sped up the credit process and allowed them to process more loans faster.
Also, some creditors decided to establish guidelines to systematically charge more interest for applicants with lower ranges of credit scores instead of flat out denials. It provided for pre-calculated credit risks. So you may want to get credit help to avoid higher fees and interest rates for credit.
Fico credit scoring also provided lenders with an objective defense against accusations of discrimination in lending practices. Loans could be determined solely based on credit scores, without a subjective review of credit report information.
Credit Scores Cloaked in Mystery
But here's the problem. Credit Scores were cloaked in mystery. No one knew how they were calculated or what really went into the algorithms of the scoring models. It was a black box.
So FICO is a major player in the credit industry. However, their scores are dependent upon credit information provided by the big 3 credit reporting agencies; the primary players in the credit industry. So there is a fierce battle for the lucrative business of selling credit scores. The credit bureaus have ganged up and developed their own scoring model to compete with FICO. Their new credit scoring model is called Vantage Scoring.
The jury is still out on whether Vantage scoring will be the "new normal" in credit scoring or not. But we do know that whatever scoring model prevails your credit history will be the basis for calculation and analysis of your credit scores. So the best credit improvement strategy is to improve your credit reports so no matter which scoring system is used by creditors or employers, your scores will reflect a good credit history.
"Why You Should Never Ever File Your Disputes Using the Credit Bureaus' Online Dispute System"