Credit Repair

With tightening mortgage requirements for borrowers understanding and managing your credit score has never been more important. Some things to consider when choosing a credit repair company, there is no way to removed legitimate obligation off a credit report or to “wipe it clean” and beware of exorbitant, hidden fees. Credit Service Organizations (CSO) must be registered with the Texas Secretary of State’s office (www.sos.state.tx.us). If the company isn’t on the list, there is no state provided protection. Contracts for credit repair must be in writing, dated and signed by the consumer. It must contain the payment terms, a description of services and estimated period of performance, the address of the organization’s principal place of business and the name & address of the registered agent.

FICO 08 - New Credit Score Model

The credit scoring system is being tweaked again as Fair Isaac Corporation, developer of the FICO credit score rolls out a new model dubbed FICO 08.
The three major credit bureaus announced credit score packages of their own, probably having seen the success FICO was having in charging consumers for information on their credit scores. FICO, however, remains the product used by most lenders not only to grant credit but to set interest rates and other loan terms. FICO scores are also factored into credit decisions by insurance underwriters, cell phone, and utility companies and are sometimes used by employers to evaluate prospective employees.

FICO predicts that the new scoring system will help lenders reduce default rates on consumer loans between 5 and 15%. FICO 08 will supposedly go easier on consumers who make the occasional slip while coming down harder on those with multiple offenses. For example, it will give a slightly higher score than previously to a borrower who is late on one obligation but current on multiple other accounts. Those with several delinquent accounts could find their credit score has dropped.

To read more: http://tiny.cc/doCy2

Experian FICO Credit Scores No Longer Available

As of February 14, information on Experian credit scores will be more difficult for consumers to obtain. Experian will no longer sell its information through MYFICO.com or any other external credit reporting agency. Consumer may still receive the free credit report that they are entitled to by law through the Annual Credit Report request service and may purchase a credit report and score directly from Experian. However, these score may vary from the scores used by lenders. According to The New York Times and Tom Quinn, vice president for scoring at Fair Issac (the company that formulated the FICO score), “Experian cannot distribute its FICO scores to consumers itself or though other outlets. Experian does produce another propriety three-digit credit score and make it available to consumers, but it is not the one that lenders base their decisions on.” Lenders will still have access to the complete FICO scores, including FICO scores from Experian. It will be increasingly important for consumers to check for errors on their credit reports.