Don't Be Fooled By The Credit Agencies – Restore Your Credit


In today's economic climate, a growing number of Americans suffer from negative ratings in their credit file including delinquent payments, judgments, collections, foreclosures and bankruptcies. Not only do these items prevent consumers from obtaining new credit when they need it most, but it impact consumers in areas they never thought of before.

It's also used to determine your interest rate, the amount of your down payment and the variety of mortgage types available to you if you're buying a house, your ability to get a car loan, the premium on your auto or homeowner's insurance, and even your ability to get a job. For example, some insurers are using low credit scores as indicators to identify individuals they believe are more likely to make claims against their insurance policies. If your credit score is on the low side, you'll pay a higher interest rate on bank loans and credit cards, and may even see your credit limit decreased.


There are three primary credit reporting agencies: TransUnion, Experian, Equifax and they track your credit information separately. These three reports tend to be slightly different and are used to derive the so-called tri-merge credit report.

Credit reporting companies are just that – companies. They are in business to make money, and they generate their income by selling credit reports to creditors. THEY ARE NOT PERFECT AND MAKE MISTAKES THAT CAN SERIOSLY IMPACT YOUR LIFE.


720-850 – the ideal credit score
700-719 – access to favorable financing terms
675-699 – standard FICO credit
620-674 – access to financing with additional terms
560-619 – very limited financing options
500-559 – try to repair your bad credit score as soon as possible

The FICO credit score is computed from 5 different personal financial history (2 primary and 3 secondary) aspects with varying weightage of importance. These are given below:

Loan Repayment History – 35%
Total Owed Amounts – 30%
Loan Repayment Length – 15%
Inquiries or New Credit – 10%
Types of Credit Used – 10%

The two primary credit history details regarding payment history and total owed amounts to more than half of the total percentage. These two are the most crucial determinant of your final FICO score and it is important to pay more attention to them when trying to improve your credit standing.


It is estimated that 80% of credit reports have some type of error, which can knock enough points off your score to cause you to be turned down for a mortgage or charged a higher interest rate.

Negative credit accounts, or trade lines, can remain on your credit report for up to 7 years, and bankruptcies and other public records for up to 10 years. Inquiries on your credit report may remain for 2 years. These are the maximum times that are permitted by federal law for reporting agencies to show negative items; however, these times are not mandatory. At any time, a creditor or credit bureau may remove a derogatory remark from your credit report if the consumer requests an investigation into remarks that they feel are incorrect.


Only the credit bureaus have the power to remove items from your credit report. But, as required by law, the credit bureaus must delete inaccurate, unverifiable, or outdated information. However, innaccurate, erroneous and obsolete information can be removed from your credit file including:

– Late Payments

– Charge Offs

– Foreclosures

– Judgments

– Repossessions

– Identity Theft

– Closed Accounts

– Bankruptcies

– Negative Settlements

– Liens

– Collections

Because your financial health revolves around your credit score, it is important that the information your credit report contains be as accurate and up-to-date as possible. Let my company help you.

Source by Gary T Thomas

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