At first, companies would have to look at all credit activity from the individual to determine whether they believed that an individual was credit worthy or not. It took a lot of time and effort and was often subjective. To reduce the time and effort, and to reduce the subjectiveness, credit bureaus began to develop credit scores. Credit scores helped to reduce the amount of time to analysis an individual’s credit and made their credit profile less complicated by providing a single number as their credit score.
Credit scores are calculated based on several factors. Payment history, amounts owed, length of credit history, new credit, and types of credit used. All that information is collected and analyzed according to proprietary algorithms that produce your credit score.
The most popular credit score is the FICO score. FICO scores can range between 300 and 850. Poor credit is generally considered below 600, while average credit is between 600 and 700. Good credit is usually anything higher than 700, and excellent credit starts at 750.
There are 3 major credit bureaus, Experian, Equifax, and TransUnion. Each of the three major credit bureaus issues its own credit scores. The specific credit score will be different from one bureau to the next, because not all companies report to all 3 of the major credit bureaus. If a collection shows up on Experian, but not the other two bureaus, your Experian credit score will be lower than your TransUnion and Equifax scores. By knowing your credit score, you can do what’s necessary to keep it at a healthy level. To do this, you need to make your payments on time and watch for possible errors that can bring down your scores. An example of this could be a collection balance reported that you actually paid. By identifying such activity on a regular basis, you’ll be able to fix it before it becomes a problem.
Here at Credit Services of America we work with all three credit bureaus to remove negative accounts that are affecting your credit score and correct errors that we find. We personalize our disputes for better results and make every round of dispute about our client’s credit needs.
A Goal without a Plan is just a Wish. Give us a call TODAY at 844-FIX-URCR or click on the following link to schedule your FREE consultation and create your personalized plan to achieve your credit and debt GOALS!
*Individual results may vary. Please call for details and to discuss your own individual situation.