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FICO Scores and FAKO Scores
Far From the Truth
In case you do not already know, there are many different types of credit scores available on the web. The only thing they have in common is that they are sold generically as “credit scores”. And the fact that they all seem to be thriving (and proliferating) can only be attributed to the wide-spread belief that by purchasing “your credit score” you are getting a universally standardized number. Alas, this is far from the truth.
Advance Knowledge
The best reason to check your score is to get advance knowledge of the number a lender will see when you apply for a loan. Lenders use FICO scores – in many cases three FICO scores. There are three credit bureaus that matter, Experian, Equifax, and TransUnion; each of these bureaus compiles credit data from lenders, collectors, etc., and hence, there are three FICO scores, one each for the mix of credit data assembled by the three bureaus.
Pseudo-Scores
Getting your actual FICO scores is somewhat problematic. The credit bureaus do not sell FICO scores, nor do any of the websites that pop up when you do a search for “credit scores”. All of these scores are creations of either the bureaus, or of other enterprising entities cashing in on the opportunity created by the prevailing confusion. And there is a difference. These pseudo-scores (often called FAKO scores) bear little resemblance to the FICO scores that lenders use to evaluate your loan application. If occasionally the numbers do coincide, it is rarity, and certainly not to be relied upon.
Getting FICO Scores
You can get your FICO scores from MyFICO.com, or to be precise, you can get two of your FICO scores from MyFICO.com, as Experian no longer allows FICO scores based on their data to be sold to the public. I might add that getting your two available FICO scores will cost you $39.90.
No Worry
Credit repair-wise, I would not spend too much time worrying over it. If you want to obtain your scores in order to benchmark your progress, spend the money and get the two FICO scores. Or you can skip it. Everything a competent credit repair company does is carefully designed to help, and unless you feel the need to monitor your FICO scores, you can rest assured they are going up, and you will see ample evidence of the results the next time you apply for a loan.
The Spirit of Self Improvement
One Giant Step
If you have been through tough times and your credit has suffered you may find it hard to think about credit repair; it’s intimidating, scary even. The first step is always the hardest. It takes courage. Self-improvement programs can be like that, it may take a running start to get moving.
Feel Like a New Person
Credit repair is a little different than many self-improvement programs; results can be surprisingly quick and satisfying. The FICO scoring model has become extraordinarily forgiving, so rebuilding efforts are quickly rewarded, and in combination with the type of credit cleanup program offered by Sky Blue, you can feel like a new person in as little a six months.
Our Natural Condition
If you think about it, self-improvement and life are virtually synonymous. Like evolution, we are designed to be moving forward. It is the natural condition of our existence. Moving backward is not in harmony with our nature, and it cannot be comfortable. I think that this explains why we feel such relief when we make the decision to improve our life – the moment of getting back on track feels so good.
Pure Science
If you are toying with the idea of credit repair, I would encourage you to take the first step. Do not pre-judge your prospects for success. I can’t tell you how many times a day we hear people say they think they are beyond help. It is never the case. What we do here is pure science. Take the steps and the results are inevitable.
The Right Thing
Credit repair results are in the cards. It is never a question of if, it is a matter of when, and the sooner you start the soon you finish. And there is a huge personal bonus you get the moment you get started – the relief that comes from doing the right thing for yourself.
Another Beautiful Day For FICO
It’s Getting Better All the Time
We have been seeing a new and remarkable level of responsiveness from FICO; little positive changes that once yielded 20 point increases are now yielding 30 or 40 points. Conversely, older derogatory information is hurting less, especially in cases where the old derogatory event is isolated.
A Quick Rebound
The implications for anyone in a credit repair program are wonderful. You should be able to get back on your feet quicker than ever. And if you have not started working on your credit yet, now is the time.
The Formula
What’s it all about? FICO does not divulge much, but it is not too hard to surmise what’s going on. FICO is a predictive model. It is designed to predict the odds of future default. Low numbers warn prospective lenders that you should be avoided, while higher numbers tell lenders that you are a good bet.
The Recession
As the recession got rolling in 2007 and 2008, FICO became more and more strict. Little changes in revolving balances were suddenly causing credit-score whiplash; moves of 100 points were not uncommon. And late payments were devastating and could take a year to overcome.
The Recovery
By the end of 2010 it was clear that the tides had turned. FICO was forgiving old derogatory events, and rewarding renewed efforts to build credit. Remember that FICO is all about statistics. They are not easing their guidelines unilaterally or for some charitable reason. They can only make changes when their statistics reveal a shifting correlation between events.
The Opportunity
These FICO changes provide a great opportunity. If you have had a spell of bad credit, open new accounts and your scores will rise significantly. If you can eliminate old erroneous derogatory credit, thereby isolating the legitimate events, you will see that the remaining items are causing little or no score damage.
It should be a great year.
It is Easier Than You Think
The First Step
The hardest part of the credit repair process is the decision to get started. We know that credit issues can evoke emotional discomfort, and even fear. It may seem easier to ignore the problem in the hope that time will bury the events of the past. As it happens, credit repair is not hard – and time cannot be trusted to remedy your credit ills.
Credit is Really Forgiving
Regardless of the current appearance of your credit report, credit scores are remarkably forgiving. A systematic approach to credit repair can transform your credit reports and boost your scores in a surprisingly short period of time. All it takes is the right effort.
The Right Time
And time may not help at all. Many people with credit problems choose to hide, waiting and hoping that their bad credit will vanish as the years go by. In a perfect world this might happen, but in practical fact, derogatory events tend to generate a cascade of reporting errors that multiply with time rather than diminish.
Let Us Help
The right response to a credit problem is to confront it head on, and sooner rather than later. Let us help. All you need to do is sign up and get your credit reports to us. We will make sense of everything and make sure that all of the issues are managed in the most appropriate and effective manner. Just take the first step!
A Happy 100 Point Bonus
A Special Opportunity
When it comes to credit repair, the best results come from simultaneously cleaning up your reports and rebuilding your credit. Both are equally important, but the current formulation of the FICO model presents a special opportunity to get a big credit score boost from rebuilding – and it is not just for people without open accounts. You can get the same credit score boost (often over 100 points) from this rebuilding exercise even if you currently have several well-managed open accounts.
What to Do
Open two new credit cards today (secured cards are fine and a perfect solution for anyone with poor credit), make your payments on time, and keep your balances low. You can expect a 100 point increase in your FICO scores six months after they start to report.
FICO Loves Borrowers
Accounts opened after a period of credit trouble are the key to this big credit score bonus. FICO is not forthcoming about their formulation, but it is pretty easy to see the logic here. New accounts signal a consumer’s ability to reenter the credit market; they are a sign of life, proof that the credit trouble of the past did not cause permanent incapacity.
The Role of Time
As with any new credit, time does play a role – and the first months will cause a temporary dip in your scores. Not to worry. FICO is just waiting to see that you will manage your new accounts properly. Once you pass FICOs probationary period your scores will start to climb until they have delivered the full benefit.