Creditology as we may refer to it, is the mathematical equations and algorithms used to produce a score from a compilation of massive amounts of data that is meant to envision the disposition for a borrower to default on a loan. This debatable and regularly capricious rating system has kept many Yanks in a state of helplessness, and allowed banks and insurance companies to charge higher charges and rates based on a number that often times makes almost no sense, and is really incorrect. A very valuable industry has arisen, that is empowering the consumer to have control over this number, it is called creditology credit repair. Quality credit industry pros have access to software that runs mathematical equations similar to the credit firms equations, except in reverse, to pinpoint the optimum levels of credit limits against balances, kinds of accounts to maintain as open, period of time to keep accounts open, etc . What is a Credit Score? A credit score is a number generated by a mathematical formula that is supposed to envision credit suitability. The commonest of the credit score standards is the FICO score by Fair Isaac. Fair Isaac uses thousands of credit reports to calibrate the FICO scoring model and is awfully secretive of the exact formula. Here is a % breakdown of a FICO score : Thirty percent - Debt ratio 15% - Length of credit history ten percent - sorts of Credit It is really feasible to remove negative items from your payment history thru a credit restoration service, or even on your own, with the right guidance. Consumers can increase their credit history with positive rated accounts that will improve score. With a good credit restoration company, it can be determined the exact number of new accounts to open, with the exact credit limits and balances to maintain to optimize the score. Most people are aware of the 3 free credit score reporting agencies TransUnion, Equifax and Experian. The average difference in score between the highest and lowest of your three FICO scores is sixty points. According to the Government Accountability Office, 80-90% of credit reports have serious mistakes on them, and this does not even include the more minute mistakes a quality credit restoration company looks for. How am I able to get a free copy of my credit report? However, this is just a record of accounts on the credit score and a general reference to standing, ie "good standing". Specifics are not offered such as behind dates, and most significantly the particular score. For this info, the buyer must pay the companies approximately a $40 fee. The law that was meant to help customers monitor their credit has become nothing less than a bait and switch to lure clients to get their "Free Credit Report", only to realize the crucial info is not free! The bottom line is that there are very different variants of credit profile enhancement, including removing reporting of negative accounts, where possible, removal of erroneous reporting, and frivolous reporting by creditors, as well as the mathematical dynamics behind creditology and free credit score online repair. The client must utilize a company that has all of the resources important to optimize every aspect of the credit profile, not just mail out dispute letters.
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