Your Credit Score, also known as your FICO Score, is determined by an independent, for profit company which was established in 1956. FICO stands for “Fair, Isaac Corporation”. Your FICO Score is based on information from “information agencies” such as Equifax, Experian and TransUnion. These companies are known as “the Big Three” since FICO uses their information more than other similar companies. But there are MANY such companies collecting data ON YOU. Some of that data is CORRECT, but much of it is INCORRECT!
Your “Credit Score” is determined by FICO. In a similar way, you have a physical health score. That “score” comes from the Medical Information Bureau (or “MIB”). Your FICO Score is a reflection of your FINANCIAL HEALTH just as your “MIB Score” is a reflection of your PHYSICAL HEALTH. Both scores can be erroneous.
As stated above, your FICO Score comes from information obtained by “Credit Reporting Agencies” such as “the Big Three”. The problem is that 79% of the Credit Reports coming from the Big Three contain ERRORS! 79%! That’s HORRIBLE!
This is why the “Fair Credit Reporting Act” was established in 1970. This piece of legislation is very comprehensive, and provides consumers with MANY tools to force agencies such as the Big Three to REMOVE the negative information found on your Credit Report.
Improving your FICO Score by removing the negative information from your Credit Report will CHANGE YOUR LIFE. In fact, let’s look at one example of just how financially devastating a low Credit Score can be. In this example we have two people who need to buy a new car: Helen & Hank. They both have the same experience of shopping for their new car. They both pay the SAME price of $23,000 for the car. But because Helen’s FICO SCORE is better than Hank’s, Helen ends up paying MUCH LESS for the SAME EXACT CAR!
HELEN has a FICO Score of 730.
She qualified for an interest rate of 1.99%.
Her monthly payment was $368.22.
She paid a total of $1302.39 in interest.
HELEN paid a total of $24,302.39 for her car.
HANK has a FICO Score of 599.
He qualified for an interest rate of 14.99%.
His monthly payment was $513.97.
He paid a total of $10,921.44 in interest.
HANK paid a total of $33,921.44 for his car.
In this simple but profound example of the financial impact your FICO Score can have, HANK will pay $9,616.05 MORE than HELEN for the SAME EXACT CAR! And this is just ONE example of the MANY ways our credit can hurt us or help us. IMAGINE if this was a mortgage instead of a car. We’d be talking about A MUCH GREATER IMPACT!
Our credit repair team has helped over 200,000 individuals & couples fulfill their FINANCIAL DREAMS by repairing their credit over the past 15 years. We are proud to have an EARNED A+ rating from the BBB. We can help you restore your credit too. To get all the details and to begin your new & improved financial life, contact us today.