Credit Score Counsel

Ready for some specific insights on how to obtain your credit bureau score?

As you scan every line in this article you’ll recognize that unlike credit files, your credit bureau score (or FICO score) is not required to be offered by credit reporting agencies for free.

Needless to say, The FCRA (Federal Credit Reporting Act) entitles you o a copy of the credit score calculated by credit reporting agencies.

And, get this:  Generally, most lenders use the FICO (Fair Isaac Corporation) method to calculate your credit score.  However, you cannot ignore the fact that the score given to you by some credit agencies my not necessarily be FICO credit scores.

In just a minute, I’ll explain the difference, but first let me tall you who the three major consumer credit reporting agencies are:

1.    Equifax
2.    Experian
3.    TransUnion

Here’s something else you need to know…only Equifax has the right to market and sell FICO credit bureau scores.

If you purchase your credit bureau score from the other two major credit-reporting agencies, you will receive a proprietary score unique to the particular agency.

But here’s the most important part, credit-reporting agencies will provide you with up to four reasons for your credit score.  Stated a little differently, these are statements that reveal the REAL reason a particular score is given.

Here’s a list of the top 10 reason codes and the reason statements:

·    01 – amount owed on accounts
·    02 – level of delinquency on accounts
·    05 – too many accounts with balances
·    10 – proportion of balances to credit limits on revolving accounts is too high
·    12 – time since delinquency is too recent or unknown
·    14 – length of time accounts have been established
·    18 – number of accounts with delinquency
·    38 – serious delinquency and public record or collection filed
·    39 – serious delinquency
·    40 – derogatory public record or collection filed

Know this:  reason statements can also clues that can help you increase your credit score.  Take the road less traveled and use them to identify problems with your credit score and position yourself to correct the problem.

Now that you have come to the end of this article, it is easy for you to recognize the important of your credit bureau score.

Do whatever you need to do to keep yourself from being taken to the cleaners.

Know where you stand.