Find Out Your FICO Scores

Your mortgage lender will underwrite your loan application using the middle of your three FICO scores. If you expect to purchase a home or refinance your current mortgage you should know your FICO scores in advance. If there is a problem it is best that you discover it, rather than your mortgage lender. Plan your credit repair strategy today.

Get the Right Scores

The credit scores sold by Experian and TransUnion are their own proprietary scores and can differ from your FICO scores by a significant amount. Equifax sells a true FICO score, but will apply the FICO model only to its own data, and it is not enough to have one FICO score. Your credit repair effort requires reliable information. The only site consumers can purchase their three FICO scores is myfico.com.

Check Your Revolving Balances

Your revolving balances have a dramatic impact on your credit scores. Many people in credit repair programs assume incorrectly that if they make their payments on time their scores will be fine. Later they wonder why their scores are languishing. A high balance on a credit card may cause a drop of over one hundred points your scores. You cannot afford for this to happen. When it comes to your mortgage, every point counts.

Bring Your Balances Down

Plan in advance and bring your balances down as much as possible before your make your mortgage application. The FICO scoring model recognizes five levels of credit card usage: 20, 40, 60, 80, and 100 percent; the lower the balance the higher the score. Here is some great credit repair advice, if you have the ability you should reduce your balance below 20 percent of your credit limit.

Proofread Your Reports

Once you have all three of your credit reports you should take the time to proofread every bit of information. Remember that you may be living with your new mortgage payment for many years to come. Don’t make the mistake of believing that if the information on your report looks familiar it is accurate. Credit repair requires a bit of healthy skepticism. There are many types of errors possible; not all errors are obvious. I suggest that you spend a couple of hours examining your reports. It may be the best investment of time you ever made.

Fix the Derogatory Information

Look carefully at the derogatory information on your reports. Common errors include duplicate accounts and accounts that are reporting beyond the seven year reporting period limit. Keep in mind that the reporting period for a collection starts with the first missed payment in the sequence that led to the collection status. Collectors often reset the clock accidentally, or otherwise, and report well beyond the expiration of the legal limit. You should also know that when a collector sells a debt, or returns it to the original creditor, they are supposed to cease reporting, but rarely do. This is a great credit repair opportunity.

Fix the Positive Information

Many of the errors that can hurt your credit scores are not derogatory and are harder to spot than a thirty day late payment or a collection. A patient credit repair effort will pay off. Some of the errors that commonly go unnoticed include under-reported credit limits and misreported account opening dates. Under-reported credit limits can make it look like your credit card is maxed-out and your score will reflect this. Misreported account opening dates can make it look like your account is newer than it really is and you will lose points.

The Power of a Rapid Rescore

If you find yourself needing to improve your credit score quickly, try a Rapid Rescore. A Rapid Rescore is a tool offered only by mortgage brokers. It allows you to furnish documentation that balances have been paid down, or that derogatory information has been resolved or is reported in error. The mortgage broker provides the documentation to the credit bureaus. They in turn recalculate your score within three days. Instant credit repair. There is a small cost involved, but it can be well worth it.

Hold off on New Purchases

Too many people make the mistake of making large purchases before they apply for a mortgage. The effect is to inflate revolving balances and deflate saving accounts, thereby lowering credit scores and weakening the mortgage application. Wait until you close on your new mortgage before purchasing your new furniture. Hold off on all significant transactions. Save your money and preserve your credit scores.

New Credit and Your Credit Repair Effort

Your credit score is determined by both the negative and positive information on your credit report. If you do not have any open credit your credit score will suffer. Many people in credit repair programs open secured credit cards to start the rebuilding process. That’s a good idea, and very effective. But be careful of the timing. The first month a new account appears on your credit report your score will fall. If you need to build new credit don’t wait until the last minute.

Copyright ? 2007 James W. Kemish. All Content. All Rights Reserved.

Do you know your credit score? It’s the three-digit number that tells lenders whether or not you’re a good candidate for credit. Your number can range from 300 to 800. If you’ve made payments on time and haven’t maxed out your credit cards, your credit score will be near the higher end. If, on the other hand, you’ve got delinquent or defaulted accounts or a large amount of debt, your score will be lower. 700 is the minimum credit score required to qualify for low-interest mortgages and other hard-to-get services.

If you’ve been declined for credit, you’re entitled to a free copy of your credit report. You can also request one free copy per year. But you won’t find your credit score listed there. This might have you wondering, “How can I find out my credit rating?”

A simple Internet search for “credit score” or “credit rating” will turn up thousands of web sites where you can go to obtain your credit score. These sites charge varying amounts for this service, so be sure to shop around before selecting one. Some will require you to participate in a trial period for a credit monitoring service. If you don’t want to subscribe, look for another site that will give you your credit score with no strings attached.

The three major credit bureaus, Experian, Equifax and TransUnion, will provide your credit score for a small fee. The usual charge is $7-8.00. Contact these bureaus by mail or through their web sites: experian.com, equifax.com, and transunion.com, respectively. When you order online, you will receive your credit rating in minutes. It could take weeks or months to receive your credit score through the mail.

Credit bureaus and 90% of banks use your FICO score to determine your credit rating. FICO stands for Fair Isaac Corporation. You can go directly to myfico.com and order copies of your credit rating from all the major credit bureaus. This bundle costs $47.85.

Your credit score is your financial history neatly summed up in three digits. It allows lenders to tell at a glance whether you’re a risky borrower or a safe bet. Instead of wondering whether you’ll qualify for your next home or car loan, take action. Go online and get a copy of your credit rating. Then you’ll know for sure how lenders will view your application. If your score turns out to be lower than you’d hoped, take heart; once you know the number you’re working with, you can take steps to raise it.

A credit score is a general term used for a number assigned to you based on your credit report. A FICO score is one of these scoring models and is a brand of credit score. What that does for the consumers is sometimes increase confusion. There are some things to understand.

The first thing is, if you are talking about credit scores, you are talking in general. It is a myth that there is only one credit score. There are several different scores that are available. Each of the three credit bureaus has their own. There is also a joint project called a VantageScore that was developed by all three bureaus in conjunction. These are only two of what could be a thousand different credit scores in use today by lenders.

If you are talking about a FICO score, you are talking about a type of credit score. It was developed by Fair Isaac and they have been in the credit scoring business since the 1950′s. It is the most recognized face of credit scores. The history comes from the recommendation of Freddie Mac and Fannie Mae to use FICO scores in mortgage lending.

To further complicate things, there are different versions of the FICO score. You will find you also have a Beacon score. This is specific to Experian, the largest credit bureau. This is the marketing name they use for the FICO score.

The scale of all these credit scores can also differ. For example, the VantageScore uses a credit score range of 501 to 990. The FICO score uses a range of 300 to 850. Your credit rating could vary based on the scale. Meaning, you could have a good rating with one and an average with the other.

The question for consumers is which credit score should I worry about. It could be a question of what model is the lender using, but the starting point is your FICO score. This is the market leader and is often used in the majority of mortgages. It could also be the basis of many of the other scores. You should also get a score based on all three credit reports. You will find that the scores are different on each. This is because of reporting by your accounts to one bureau and not the other. If you want your FICO score, you need to go to the source and visit Fair Isaac credit score website, MyFICO.com

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 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 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 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 scores they will come complete with your three 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 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!

Before you can work on erasing your debt, you need a clear understanding of your financial situation. Here are the most important items to consider when assessing your finances.

Income versus Debt. Unfortunately, most people don’t realize how much they spend until they sit down and start counting everything. After only ten minutes of research, you should clearly see how much money is coming in and how much is going out. The numbers may be worse than you think, though recognizing the problem is the first step towards improving your finances. You may have reduce your spending on simple pleasures like dining out or going to the movies or, depending on the severity of your situation, remove them altogether.

Request credit histories. There are three agencies that run credit reports: Equifax (800-685-1111), Experian (888-397-3743) and TransUnion (800-888-4213). Contact all three and ask for your credit report. While the three are usually in the same ballpark, you may find one is much higher (or lower) than the others. It’s important to find out why and remedy the situation. Creidt reports are the most objective look at your finances; not only does it list what you owe, it shows who you owe to, whether you’ve exceeded your credit limits, and if you consistently pay your bills on time (which of course, you should!). Having low credit scores makes for higher interest payments on credit cards and, more importantly, mortgages.

Check out your FICO score. This is another way lenders assess your finances, and can be even more important than your credit histories. A FICO score is measured by your credit history, so its results should be similar to your three credit history reports. The score ranges from 300 to 850. If you are over 720, you are in great shape. You can find this information on their website at http://www.myfico.com.

These are the three most important steps to determining your finances. Remember, in order to beat over spending, you must be aware of your income and debts, and learn to manage them appropriately. According to a study by The National Foundation for Credit Counseling, 41% of those who filed for bankruptcy cited poor management of their money. Take action today, and don’t become one of those 41%!

People should know that they can have the best solution when it comes in having the best way to know their credit score. One of the most effective and instant solutions for people who want to know their credit score is through MyFICO. This can help them to obtain their FICO scores that they can use in applying for a loan, credit card or insurance policy.

Lenders will have to obtain people’s credit scores once they apply for a loan, whether it is mortgage or auto loan or credit card. Knowing their credit scores instantly can give them the upper hand in applying for the loan they wanted to have. Lenders can look into their credit scores to determine their capabilities for a loan application and if they can repay the loan in a timely manner. People can use FICO scores in order to know their scores instantly and effectively. They can find this on the Internet and it can really help them in boosting the speed of the approval of their loan.

However, they should know that they will have to pay in order to know their credit scores instantly, but they should also know that the price they will be paying is worth it. They can receive full access of their credit scores online and many more. The information that will be offered by FICO scores is true and concise, so people can rely on this and this can help them in tier loan application.

How much does my FICO score normally cost?

You can go to myfico.com and purchase your score for $19.95 from either Transunion or Equifax.

How can I get my FICO score free without a coupon or discount code?

However, for those people who do not have the capacity to purchase their FICO scores, the website can also offer free trial in order for them to know their FICO scores. People should take advantage of this free-trial and optimize its use in order to know their credit scores. This is one of those trial offers where you do have to provide your credit card information but you can cancel before the trial is over and not pay anything, a savings of $19.95.

This allows you to get all the vital information you need for your loan or credit card application. People should also be extra careful because this trial will last only up to 10 days. More than that, the website will bill them, so they should know when to cancel their free-trial period.