Credit Debt Relief

Between your credit scores, and your credit reports, your financial health depends on obtaining, and maintaining, a good credit rating.  You may be wondering why I used scores and reports, plural as opposed to the singular. Well, to answer your question, it is because the credit reporting agencies use different brand names for their implementation of the original FICO model.

Equifax’s version of the FICO model is known as the Beacon Score. Trans Union calls theirs TU FICO Classic. Experian likes “The Experian/Fair Isaac Risk Model”. If you hear any of these names, you are getting a FICO score. To make certain though, ask your lender if their score is a FICO score.

These are the industry standards for calculating a reliability factor (or creditworthiness) for credit applicants. Your score is the number one criteria that most creditors use to determine what interest rate you will be charged on your mortgages, loans, and credit cards.

It is calculated based upon the information available in your credit report. Your credit report is used to determine your eligibility to receive credit, along with other strategic information that each creditor determines. Between your score, and your credit report, your financial health depends on obtaining, and maintaining, a good credit rating.

You Can Have Different Credit Scores with Each Agency

Not only can you, but more likely than not, you do have a different credit score with each agency.  The three major credit bureaus, Equifax, Transperian (formerly TRW), and TransUnion, carry information about you and your credit. This can result in your having 3 different scores if the data is different from bureau to bureau, which is often the case.

It’s always a good idea, to check your credit reports, and credit scores, at least once a year with each agency. Despite what people will try and sell you, IT IS ABSOLUTELY FREE to check your scores once a year or when you’ve been denied credit. If good information is missing from one bureau, or incorrect information is present in another, you can request (rather demand) it be fixed so your credit scores and reports show the most accurate, and complete information available across all three major credit bureaus.

FICO ratings range from 350 to 850, with 850 being the best rating (which gets you the lowest interest rates). Below 600 is when you may have loans turned down, or see much higher interest rates than those commonly advertised. If you file bankruptcy with a higher credit score, it will have less of a negative affect than if you filed with a lower credit score and thus affects your debt relief solutions.