How FICO Scores Work
One of the most important numbers one should be aware of when it comes to their own financial intelligence is their FICO Score.
The FICO score is a number between 300 and 850 which determines your credit worthiness.
The higher your score, the more credible you are to lenders.
This number is important to lenders such as banks and and credit card companies,collection companies and even governments because they establish your financial worthiness and inform lenders the risk involved in lending you money. Your FICO score is determined by taking into account your financial history. How much you borrow and how you pay back your debts.
Your financial history includes your payment records, your debt burden, the length of your financial history, the types of credit cards used and recent searches on your report.
All this detailed information will be available in your credit report along with your FICO score. All these factors are important in determining the final score you get and should be monitored carefully.
This can be a hard task and that is why having a credit repair group might be the best option for an individual.
The FICO Score Advantage
Having a high FICO score is advantageous for many reasons. A high score shows lenders that you are financially credible, and that any money lent to you will be paid back in full and in a reasonable time period.
Your credit report is made available to lenders and having a bad score informs them that you cannot be trusted to pay back your debts. As a result, You might be denied loans or get loans at a higher interest rate than an individual with a better score.
Not only does this affect your ability to get loans but an individual might also be denied housing, insurance and employment because of a low rating.
Due to this fact, every individual must focus on building and establishing a higher score or if they are in a situation whereby previous financial decisions have given them a low rating, they should focus on improving and upgrading their overall score.
This can be done with the help of a credit repair group.
A Credit Repair Group Can Help
There are a number of ways in which an individual could have harmed their FICO score.
Your score is impaired if your credit history has an excessive number of late payments or creditors’ reports of trouble collecting payments.
Your financial worthiness also suffers if you have negative judgments on your records or collection agency activity.
A credit repair group can be the solution to rehabilitating your score and improving your ability to borrow.
A credit repair group can help you understand your credit report and help you reestablish a higher score.
By tracking all your ratings from the three major companies, a credit repair group can help to improve your score by removing negative items from your report such as late payments, tax liens on your property, foreclosures and many more.
A credit repair group can also find any errors that might be on your report, that may be falsely giving you a lower score. By removing these errors, your overall score may improve.
A credit repair group should also be able to analyze your financial history and give you a step by step action plan on how you can improve your score.
A good credit repair group should be able to evaluate your credit history and collect all the information surrounding your score.
They should also be able to use this information to give you an action plan on how you can improve your financial health and worthiness.
The credit repair group should also be able to identify any errors in your report and generate dispute letters to get them removed from your report. In this case, they take legal action on your behalf.
And Finally, A good credit repair group should also continuously monitor your FICO score and allow you to track your progress in real time.
Take Tamara’s FREE four part course on using dispute letters to improve your FICO scores here: www.CreditMasteryHandbook.com and learn how to pull and read your credit reports, which items to dispute, and your vital next steps.