Creditology – Declare war on your credit score!
The aspect of science and mathematics
Creditology, as we may refer to it, is the mathematical equations and algorithms used to produce a score from a compilation of large amounts of data that are supposed to predict a borrower’s tendency to default on a loan. This ambiguous and often arbitrary rating system has kept many Americans helpless and allowed banks and insurance companies to charge higher rates and fees based on a number that often makes no sense and is actually wrong. An extremely valuable industry has emerged, which is empowering the consumer to have control over this number, it is called creditology credit repair.
How does Creditology credit repair work?
Quality credit industry professionals have access to software that runs mathematical equations similar to credit bureau equations, except in reverse, to determine optimal levels of credit limits against balances, types of accounts to keep open, length of time to keep accounts open, etc.
What is a credit score?
A credit score is a number generated by a mathematical formula that is intended to predict creditworthiness. The most common of the credit scoring standards is the Fair Isaac FICO score. The FICO score ranges from 350 to 850 and is intended to predict whether or not you will be 90 days late on a loan obligation. Fair Isaac uses thousands of credit reports to calibrate the FICO scoring model and is very secretive about the exact formula.
Here is a percentage breakdown of a FICO score:
o 35% – Payment History
o 30% – Debt ratio
o 15% – Duration of Credit History
o 10% – Types of Credit
o 10% – Number of Credit Inquiries
It’s very possible to remove negative items from your payment history through a credit restoration service, or even on your own, with the right guidance. Consumers can increase their credit history with positive qualified accounts that will improve their score. With a good credit restoration company, you can determine the exact number of new accounts to open, with exact credit limits and balances to maintain to optimize your score.
Most people are familiar with the three credit reporting agencies TransUnion, Equifax, and Experian. The average score difference between the highest and lowest of your three FICO scores is 60 points. This is the result of each of the credit bureaus having different items on their report, some correct, some incorrect, and some not being reported in full compliance with the credit law.
According to the Government Accountability Office, 80-90% of credit reports have serious errors, and this doesn’t even include the smaller errors that a quality credit restoration company looks for.
How can I get a free copy of my credit report?
By law, all consumers are entitled to a free copy of their credit report from each of the three credit bureaus once a year. However, this is simply a listing of accounts on the credit report and a general reference to status, ie “good standing.” Specifics such as delinquent dates and more importantly the actual score are not provided. To obtain this information, the consumer must pay the bureaus a fee of approximately $40. The law that was supposed to help consumers control their credit has become nothing more than a bait and switch to entice consumers to get their “Free Credit Report”, only to find that vital information is missing! is free!
The bottom line is that there are very different versions of improving your credit profile, including removing negative account reports where possible, removing erroneous reports and frivolous reports from creditors, as well as the mathematical dynamics behind the repair. credit credit. The consumer should use a company that has ALL the necessary resources to optimize all aspects of the credit profile, not just mail dispute letters.
