Kirkpatrick & Associates can assist in improving the worst credit scores and even improving healthy credit scores. Higher credit scores means paying less in interest rates. Lower credit scores will result in higher insurance premiums and higher interest rates.
FICO, or Fair Isaac Corporation, has been the leader in credit scoring since the 1950s. The FICO score is used by more than 90% of lenders and is considered the industry standard. Your score will range from 300 to 850, the higher the better. It is calculated as follows:
Have you ever been turned down for a loan or an apartment lease and wondered why? It could be due to your credit history. Let’s face it–our credit says a lot about who we are. It is our financial report card, and can affect many aspects of our lives. If you are experiencing being turned down and high interest rates call us today. We can help you rebuild your credit and raise your credit scores.
HOW DOES CREDIT WORK
When you apply for credit (say a loan or a credit card), the lender has to decide if you are a good candidate for receiving the loan. The lender’s decision is based heavily on your credit history. They have to assess the level of risk involved if they are to extend credit to you. If you have displayed a poor repayment history, it is less likely that you will be approved for the loan or a line of credit.
The data available through the credit reporting agency that’s been selected to calculate your score (Equifax, Experian or TransUnion) will determine that three-digit number, whether that data is right or wrong. That’s why it is so important to review your credit reports; at a minimum get your free credit reports from all three bureaus once a year look them over to determine if all of the accounts are yours, any late payments that aren’t accurate, liens or judgments that aren’t yours or updated as paid.
One of my former clients did not realize that he had a judgment on his credit reports that was not his. Mr. John Doe’s daughter had provided his name as an emergency contact for the apartment she rented. She defaulted on the apartment rent and was sued. Once this happened the apartment manager placed the judgment on her father’s credit reports. It was illegal and had affected his chances of getting a loan. I was able to take care of this and had it removed within 35 days or less.
Since the three agencies don’t share information with each other, you’ll want to check all three. After all, you never know which reporting agency a lender will use to obtain your score, so you want all of them to be as accurate as possible.
FREE CREDIT SCORES
In an effort to obtain your credit score for free, you may have signed up with Credit Karma or Credit Sesame. But then you applied for a credit card or car loan and realized your FICO score was different than the free score. Why is this?
Both Credit Karma and Credit Sesame calculate your credit score based on proprietary scores from two of the major credit reporting bureaus. However, this is not the same thing as a FICO score. Instead of using the FICO algorithm, the bureaus use their own algorithm for free scores.