Repair Credit Score

Archive for September, 2010

Question: Why is my Credit Score (FICO) so low all of a sudden?

It has dropped nearly 80 points in the last two months
~Ive never been late on a payment (always pay extra)
~I have had only three inquries
~my credit limit on a CC was increased by $500 and I've used that
~I pulled my Credit Report from all three agencies and do not see any activity that would be considered unusual or out of the ordinary

Answer: I agree with SCH except to limit for credit cards before your score takes a hit is 30% not 50%.

Increase your Credit Score FICO by 25-75 Points in 30-45 days You can look better!

Question: Who set up the Credit Scoring system and how is it regulated?

Is there a governmental agency or even a financial regulatory institute that authorizes these folk?

Answer: There is no single "Credit Scoring system". Each company that does Credit Scoring can set up its own system. There are government agencies that attempt to regulate credit reporting, with varying degrees of success, but the decisions about how to calculate a score from a report are privately made.

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Question: What or who controls what your Credit Score is?

We all have a Credit Report and scores. What or who determines what your score is based on your payments, and good credit/bad credit? Is it computer generated? Or does an actual person go in a make that determination?

Answer: Your Credit Score is generated by a computer based on the items within your Credit Report.

While there are several companies that provide credit scores, the most important one is Fair Isaacs & Co., which produces the "FICO" score. They have a formula used by the computer that looks over each of the items on your Credit Report, weighs them against the general population, and then comes up with a number--which is your FICO Score.

This wiki article will tell you more:

http://en.wikipedia.org/wiki/Credit_score

What's NOT in a Credit Score Calculation