Category Archives: 3 Credit Scores

The Lesser Known Uses of Your FICO Credit Scores

FICO is a term that is often used as the generic word for credit scores, much the way Xerox is used when referring to any photocopy machine. But, the FICO score is a specific scoring system developed by the Fair Isaac Corporation. Fair Isaac is the company that developed the credit score and is the industry leader. Their scores are used by all three of the major credit bureaus and by over 70% of all lenders and creditors in America.

This is where it starts to gets a little confusing. Although the three bureaus use the FICO scoring system, each has their own way of calculating the score. Thus, when you receive a credit report from all three bureaus (a tri-merge report) you will get three different scores. It is further complicated by the fact that each of the bureaus may have different information in their files on you, thereby calculating their score based on different information.

But, wait, it gets more confusing. Each bureau not only has a slightly different scoring model that they purchased from Fair Isaac, but they also have different models for each credit type. So, your score will depend not only on which bureau is calculating the information, but also on the type of credit for which you apply.

Some of the more common types of scoring models are consumer, mortgage, automobile, and insurance scores. This helps explain why you get a slightly different score when you order a report for yourself (you will get the consumer scoring model version) compared to the scores your mortgage lender gets (they get the mortgage scoring model version).

In all cases, the FICO score has one major purpose: to predict your chances of default. In addition to grading your chances of default for a particular loan, creditors use credit scores for the following:

1. Fraud detection for credit and/or insurance.

2. Calculating the amount of profit a credit issuer is likely to make on a particular account of offer.

3. Predicting the risk of a specific default, like a foreclosure or a bankruptcy.

4. Forecasting the cost of an insurance policy claim.

5. Estimating how much a borrower who is in default is likely to pay.

6. Anticipating which customers may close certain accounts or pay certain accounts to zero.

7. Predicting the response rate to certain direct mail offers.

The bottom line is that creditors and the credit bureaus are in business to make money. They use credit scores, and FICO models in particular, to help determine their business plans and shape their credit decisions.

You should also always remember that the credit bureaus are for-profit entities, which create profit by having a product to sell. In this case, the product is your credit information, and their customers are the creditors who order credit reports.

Here are a few facts about credit scoring in general that you should keep in mind:

– You need to have and use credit to have a credit score.

– The FICO formula requires you to have at least one account on your credit report that has been open for six months and one account that has been updated in the past six months. Without this, you will not receive a score under FICO’s traditional scoring system.

– In 2004, Fair Isaac created the “Expansion Score” for people with thin or non-traditional credit histories. This scoring system can account for things like rental payments or checking account histories, but it is not widely accepted. It is better to work to establish traditional credit.

– A credit score is not typically the only thing lenders consider. But, it is a big factor. For example, in mortgage lending, a lender will consider your income, job history, debts and savings along with your scores. But, having a great income or terrific savings will not overcome a lousy credit score with most mortgage lenders.

– Those who will overlook your score will charge considerably higher rates and fees than traditional lenders.

– Credit scoring systems were designed for lenders, not consumers.

– Credit scores, and how they are determined, are not meant to be easy to understand. The actual formulas and details of how they work are closely guarded secrets.

Remember our earlier comment – the credit bureaus are in business to make money, not provide a service. As such, they fiercely protect their interests.

Chris Esposito originates home renovation loans for those who wish to buy and fix up a property, or for people who want to rehab their current home. For more about home improvement projects and financing, visit CM Direct’s site at , or call (877) 876-3688.


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Everyone has had a bump on the road and at some point got a blemish on their credit. It is good to know that you have options! I did this and my credit score went up by 100 points I started with a 540 credit score and I am now @ 700! None of this is sponsored this is just my personal take and recommendations!

I also forgot to mention you want to make sure none of the negative marks are out of their SOL (statue of limitations) if they are past that they have to be removed, federal law says 7 years on your credit but every state is different some states only require it to be 5 years, the state overrides that rule!! FYI 😉

2 Basic Steps!

– Dispute, Dispute, Dispute!
– Start with 3 secured cards at one time for a year!
– Credit Karma, Credit Sesame, or Annual Credit for a copy of your free credit report.

I have linked the 3 Credit Agencies for you guys to quickly access the dispute section!




Capital One Secured Card –

// the direct link for it was a little weird I couldn’t copy and paste it right, but this is their main page and the link is on the 1st page (:

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The 3 Best Tips to Higher Credit Scores

3 tips to help you raise your credit score in as little as a few months.

Better Credit Scores – 7 Tips

Credit scores are the equivalent of a financial report card. There is no way to avoid having credit scores since the Big Three consumer reporting agencies – Equifax, Trans Union, and Experian – keep tabs on your credit situation daily. These agencies then report your scores to any lender who requests it.

A credit score is also called a FICO score. If you have a low credit scores you could be turned down for home or auto loans. Your low score can also actually contribute toward your financial woes since it usually means higher monthly payments on any money you borrow.

There is hope, however! By taking the right steps, you can improve your credit scores significantly. Here are 7 tips for improving your credit scores.

Tip #1: Check your latest credit reports from each of the Big Three bureaus:

The first step toward better credit scores is to find out your current score from each of the Big Three consumer reporting bureaus. You can find a number of Web sites that give you access to this information for FREE. To find one, run a search in your favorite search engine using the keywords free credit report.

Tip #2: Immediately correct any blatant mistakes:

Download and review each report item by item, circling any blatant errors you find. Of particular importance are inaccurate unpaid balance flags, the existence of credit accounts that you never opened, and incorrect information concerning your current address. You must take each of these mistakes quite seriously and address them to both the relevant credit agency and, when applicable, the lender in question.

Tip #3: Pay your bills on time:

This is a common sense item, but people having credit problems often neglect it due to the snowballing nature of their debt situation. Paying your bills on time is very important, and nowadays even utility companies are reporting your payment history to the credit agencies. Hint: to improve your score even more, make your monthly credit card payments before the end of the statement period. This has the positive effect of keeping any charges made that month from even showing up as a balance on your cards, thereby improving your ongoing debt-to-credit limit ratio (see Tip#4).

Tip #4: Improve your debt-to-credit limit ratio:

In calculating your credit worthiness, the Big Three credit agencies factor in heavily your debt-to-credit limit ratio. As the term implies, this ratio is simply the result of dividing your total current credit card debt by the total credit limit across all of your cards. The ratio is always a number between 0 and 1, with numbers below 0.5 being most favorable. There are two ways to reduce your debt-to-credit limit ratio. One way is to simply reduce your credit card balances by paying them down. Another option that many people fail to consider: request an increase in credit limit from your creditors.

Tip #5: Pay off debt, don’t just move it around:

While it can be a smart move to transfer debt from your higher interest credit cards to your lower interest cards, this does not substitute for actually paying down your overall debt. Just moving your debt from card to card is not going to improve your score.

Tip #6: Avoid closing credit cards just prior to a loan application:

Some people believe that closing out some of their credit cards immediately prior to applying for a loan is a good idea. However, this is not true. On the contrary, it has the effect of suddenly increasing your debt-to-credit limit ratio, which is a credit score no-no. In fact, as long as you have the will power to use your credit cards wisely, it can be a good idea to keep multiple cards. Then, use these additional cards from time to time, charging small amounts and then quickly paying them off. This reflects positively in your credit scores as your having a healthy ability to manage your debt.

Tip #7: Understand the influence that bankruptcy has on your score:

As a final note, beware that having declared bankruptcy in the past can make it especially hard to achieve better credit scores. Bankruptcies can stay on your credit report for 7 to 10 years.

A 50-point improvement in your FICO score could save you ,000s in annual debt payments. Improve your score by up to 249 points in 90 days with the Credit Secrets Bible:

Related 3 Credit Scores Articles

3 Things You Might Not Know About Credit Scores

Credit ratings seem quick, right? Just three numbers that see whether you can get a charge card (, mortgage, apartment rent, car loan plus. But there are some things the Average Joe or Jane cannot know about fico scores. Here are a few ideas.

If you want to get a better sense of in which your credit appears, you may get two of the credit ratings 100% free on a monthly basis on

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Money Matters: Ways to Improve my Credit Scores

For those who are unfamiliar with what credit scores are these are ratings given by lenders to borrowers in terms of how much a credit risk they are. If a borrower is too much of a credit risk, they receive very low scores. What is the effect of these credit scores? As a borrower with low credit scores, you will have a harder time getting that loan or credit card application approved. If granted, you end up with higher interest rates and not so attractive payment terms. On the other hand, if you have high credit scores loan and credit card applications are approved faster. Credit lines are extended to you much more freely. You receive low interest rates and better payment schemes.

What are the ways to improve my credit scores? You are probably asking yourself that question. Well here are a few suggestions:

1. Pay on time! If you can, pay a little over than what is due. Little overpayments are carried over to your next bill payment. It helps that by paying on time and a little over your amount due, your next billing statement will show an amount that is lesser than the previous one. Some lending institutions or companies offer discounts if you pay early or on time. This could save you a lot of money in payments in the future.

2. Budget wisely. Make a weekly or monthly budget of your earnings and expenses. Make sure you set aside ample amounts for savings and bill payments. Failing to make a budget causes unnecessary expenses. If you budget your money wisely you will live comfortably and have little less worry about unpaid bills. Remember to stick to your budget!

3. Arrange a payment scheme with your credits so that you can pay what you can afford and pay it on time. Interest rates and payment terms are negotiable. You can always renegotiate with your creditors if you are having a hard time paying for your dues with your current loan agreements.

4. Avoid getting additional credit if it’s not necessary. Getting another loan to pay for a previous one could be the biggest mistake of your life. Creditors always look into your financial history. If they see that you miss out on your previous loan payments they will think twice before giving you a new one. It is wiser to settle all previous obligations first before getting a new one. That way you improve your credit scores and the chances of you getting a new loan application approved will be higher.

5. Review your credit reports every so often. It won’t cost you anything or will it hurt your credit scores if you do a constant review of your credit report. Reviewing your credit report will give you a better understanding of your financial status. It makes you aware if you are overspending or overpaying. There may be details in your report that needs to be updated or corrected. Inconsistencies in your report may show you that your credit line may be fraudulently used by an identity thief and credit purchases made against your name will greatly affect your credit standing. Report these inconsistencies immediately to the authorities.

These are my 5 ways to improve my credit scores. Follow these to the letter and you will have higher credit scores!

For more advice on how to improve your credit score, go to Let the experts show you how to raise your credit scores.

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Get All 3 Credit Scores Free Today
Get All 3 Credit Scores Free Today
The various reasons for each individual accessing their own credit sores are many.
The credit score of an individual affects so many crucial aspects of their lives that knowing their credit scores should indeed be a priority.
Therefore aiming to get all 3 credit scores free should be done at lets once per year.
The agencies responsible to maintain the credit records of all individuals are the credit bureaus.
While every positive transaction which may occur might not necessarily be recorded, but be assured that all negative transactions are religiously noted.
It is always a god idea to access your report as negative items recorded on your financial history will prove to be adverse to your rating a credit customer.
The only way to keep track of your financial status is to regularly check your credit rating score online.
It is entirely possible now with the advent of the new government induced mandate which stipulates that all credit bureaus make available the credit rating all citizens available to them free of cost.
Credit scores and detailed financial reports are very easy to access online.
So there is really no longer any excuse for individuals not knowing their scores these days.
There are numerous sites which will allow an individual access to his/her credit report for a trial offer.
Take advantage of these offers and make sure that you always know where you stand financially.
In today’s world, our ease of access to many things is strictly based on our rating or trustworthiness as a borrower.
Your credit rating will make all the difference in the world as to whether you will ever own a home or a vehicle.
These factors are too crucial to leave to chance.
By utilizing the facilities of these online credit bureaus, you have absolutely nothing to lose and so much to gain.
Also, knowing your credit score will help to avoid being surprised or embarrassed when applying for a loan.
Make sure that the information within the system as it regards you is known by you prior to applying for a loan.
Acquire this information free of cost before the credit manager accesses it.
Therefore, if it is not favorable, at least you would know beforehand and would spare yourself the embarrassment of being turned down.
If our score is low, however, do not despair; credit can be fixed.
Most websites which will provide you with a credit score will also be able to advise you in repairing your credit.
Even if you are not currently interested in applying for a new loan or line of credit in the near future, it is still a wise idea to check your credit history.
Many credit agencies have been known to record errors from time to time and if found out early enough you will be spared a certain and definite hassle to have it corrected.
With the proliferation of identity theft occurring at all levels, it is now even more important to keep close tabs on one’s financial status.
So don’t delay any longer.
Get all 3 credit scores free today!
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Absolutely Free 3 Bureau Credit Scores – Obtain An Accurate Report!

Absolutely Free 3 Bureau Credit Scores - Obtain An Accurate Report!
Absolutely Free 3 Bureau Credit Scores – Obtain An Accurate Report!
An average of ten million Americans utilize online checks for absolutely free 3 bureau credit scores annually.
A credit score is a number with three digits usually ranging anywhere from 300 to 850.
This report keeps track of all debt related activities such as mortgagees, car loans, credit cards, bill payments and other credit operations in order to establish your trustworthiness as a debtor.
A very important aspect which is used to calculate your overall report is the timeliness of your payments.
So paying your bills on time, every time is absolutely essential.
Basically a report stating a figure 700 and over suggests a pretty good credit standing.
For persons with a rating below 700 should try to achieve such a figure on their credit score.
Check All Three Scores
Most persons are unaware that there are actually three separate scoring systems which can be used in the tallying of your credit score.
These scores are handed by three distinct credit reporting departments namely; Equifax, Experian and TransUnion.
All three and accredited and very popular though there are times when they may use different ways in evaluating your score.
TransUnion uses the FICO score; Experian uses the Plus score while Equifax utilizes the Score Power score.
In order to get a comprehensive report of your financial status, it is important to use a service which employs all three scoring techniques.
If you are the sort of person which scrutinizes each bill and account then chances are a 3 bureau credit report might be unnecessary.
But for all the rest of us who from time to time have been a little lax in keeping check on our accounts, then a 3 bureau credit report becomes all the more necessary.
For many persons, this report provides peace of mind as if there is any form of mis-use of their accounts then it will quickly e spotted.
The most important thing to do to keep your credit healthy is to do a credit check every 6-12 months.
If you opt to access an absolutely free 3 credit score online, here are the specifics which you will ultimate be provided;
– A detailed comparison of the information provided by all three bureaus.
The figures may vary slightly due to the different methods of calculations used by them
– Detailed information on all loans and credit cards which you have or have had.
– Details of your re-payment history which will span your entire lifetime, includes time-sensitive information such as late payments and on-time payments
– A listing of all companies which have accessed your credit score.
What is your number? Let’s face it these set of numbers practically rule your life.
A good credit rating is definitely mandatory if you want to get anything done in today’s economy.
Good scores or poor scores have a major bearing on whether you ever own a car, purchase a home or even acquire the job that you desire.
So check it out right now – get absolutely free 3 bureau credit scores online.
Get the best free credit scores
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