04
Sep

FICO credit report

Guest Article from CreditRepairReview.com

There are various credit reporting agencies today. These agencies may report or even format the information they have differently. Nevertheless, the information contained in the various credit reports are basically the same.

One thing that will quickly come to your attention is that all credit agencies use just the same type of information for purposes of identification. This information includes specific details such as your date of birth, your employment data as well as your social security number.

Your credit score and report are very important today than they were some years back. Today people use credit cards more than they use cash. Therefore, the creditworthiness of card users has become a very import part of a consumer’s financial life as well as to creditors.

FICO scores are one of the most widely used credit scores. More than 80% of lenders tend to use FICO credit scores for purposes of decision-making. It is therefore important that you understand some of the basic aspects of FICO credit scores and credit reports as well. Note that the calculations of FICO credit scores are based on the information obtained from the consumer’s credit reports.

Credit reporting agencies maintain these reports. FICO is, therefore, able to estimate the level of your future credit risk based on the comparisons of your credit information to the patterns several hundreds of other past credit reports.

Where The Information Found On Reports Comes From

Personal Data

Your personal data contributes to your credit report. You are defined by your personal data. These include your addresses both current and previous. The data on your employment history as well as your social security number are also part of this section. Since this is vital information, you need to make sure that it is accurate and correct or consult with a credit repair company to help walk you through your reports and ensure accuracy.

In the event that you discard personal data, make sure you destroy it properly and completely. It can be dangerous if your personal data lands in the wrong hands. So protect it.

Credit History

The information on your credit report is also obtained from your credit history. This is normally the second part in most reports from most credit agencies. In many occasions, it is provided as a summary of the consumer’s credit history.

This part comprises all accounts that a consumer may hold at a particular point in time. This includes both closed and open accounts that the consumers hold. This is one of the most vital areas to the creditors since it gives more information with regard to an individual’s type of accounts and the total number of inquiries.

This section digs deeper to show which of the credit applicants accounts are in good standing as well as which ones are past due. It is important to note that having numerous accounts is not necessarily good when it comes to credit. It may appear to many that if you have more accounts open, then your credit score will also rise higher. This is not the case with credit.

This is how financial institutions may choose to look at your case if you have several open accounts. First thing, before approving your credit report, there is always the assumption that you will use everything available to you on your credit card. This way, the financial institutions tend to factor in the payments that you will need in order to service your debt on a monthly basis.

In the event that your credit cards all have zero balances, then you may have no problem making your mortgage payment each month. However, in the event that the financial institutions choose to look at your ability to make your monthly payments on your various credit cards then it might be a challenge, and this may seriously reduce your credit worthiness.

Account Details

Your account details are very important to creditors. Account details fall in the third section in most credit reports. This section covers in detail your account information. The status of every account is covered here. This section gives your payment history as well as a breakdown on each of your accounts. Such things as the dates of your last activity and information such as your credit issuer’s contacts are all here. Accounts with bad credit history are all covered here.

Inquiries

The information on this section comes from your credit history. This information is normally generated upon request by an authorized credit company. In this case, your credit report is produced. This information is essential when calculating your FICO score. Credit card issuers can also produce this information upon a review of your files. However, this information may not affect your credit report since most lenders do not see it when they review your credit report.

Collections

The information in this section comes from any of your accounts that have been in some way turned over to credit agencies. This occurs if for some reason or the other you failed to make payments.

The information on your credit report basically revolves around how you live. It is the most important information that you need to watch and guard properly. Such information as your payment history is essential in calculating your FICO score. Guard your information even if you do not need credit at the moment just to make sure you are on the safe side.

To wrap things up…

The good thing about your credit report is that you have the right to change any wrong information on your credit report if you do not agree with them. And it is important to do so early enough to avoid having a negative profile. Just challenge the information by yourself or by choosing a reputable credit repair service to assist you. According to the law in most instances, credit reporting agencies have about 30 days to respond to a client’s challenge.

In the event that the challenge posed is successful, then the wrong information is expunged from your report. The information on your credit report is like a resume. Keep it clean and keep it accurate. The information on your credit report may be the source of success or failure when you apply for credit from lenders.

Learn how you can start repairing your credit here, and carry on the conversation on our social media platforms. Like and follow us on Facebook and leave us a tweet on Twitter.