Credit Problems

If you have credit problems, know your FICO® scores, improve your FICO scores, and save money.

FICO is an acronym for the Fair Isaac Corporation. Learn how to rebuild your good credit by understanding exactly how your credit rating is determined. Download the free eBook from Fair Isaac that explains what a FICO rating is and how the rating is determined. Click here to get the free eBook.

Whenever you apply for credit – buying your next car, a home equity loan, refinancing, a new home, a new credit card -lenders need to analyze the risk they would be undertaking if they choose to lend you the money. FICO scores are the scores used by almost all lenders to determine the risk involved in granting you credit. Each of the three major credit bureaus (Experian, Equifax, and Transunion) maintain and score your rating based upon their own unique calculations. This is why the scores differ somewhat from bureau to bureau. The lender takes the score that falls in the middle as the score to determine approval, interest rates and terms of the account for the applicant. For example, if you have scores of 615, 640, and 695, the creditor uses the middle score evaluating your application. Taking steps to improve your FICO scores help you qualify for better rates from lenders – which can save you significant amounts of money!

The image above is an example of a FICO score report. The score is shown in big bold numbers. It also indication how your score compares to other consumers in the U.S. FICO scores range from a low of 300 to a high of 850 – the higher the better. The report shows that several major categories as shown by the key ingredients on the right side of the sample report.

Your FICO score is calculated using the information in your credit reports. These reports contain all of the information that each credit bureau has on file about you. This sample credit report shows a few examples of the types of information that the credit bureaus collect, such as your credit accounts, how many times lenders have requested information about your credit, and how many times lenders have turned your account over to a collection agency (credit problems big time).

Get your FICO Score with Score Watch® today! Click here!

This calculator shows us the depth of our credit problems. How long will it take?