FICO on Understanding Credit Scores

FICO on Understanding Credit Scores FICO credit scores are used by 90% of lenders. For a thorough explanation of how FICO scores are computed, go to FICO’s website, myfico.com. FICO’s booklet on the subject covers the subject, which you may download here.

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Consumers mistakenly believe non-FICO credit scores are actually FICO Scores

Consumers mistakenly believe non-FICO credit scores are actually FICO Scores According to a survey commissioned by FICO, 62 % of consumers who received non-FICO credit scores online believe they had received actual FICO® Scores. More than 8 in 10 consumers believe the scores they obtained from the non-FICO sources are scores widely used by lenders to make credit decisions, which is not the case. The survey found that 71% of consumers agree it is important that the credit scores they obtain are scores widely used by lenders to make credit decisions. But the only scores used in 90% of credit...

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Better Alternatives to Buying Credit Monitoring

Better Alternatives to Buying Credit Monitoring The credit agencies are eager to sell you credit monitoring at about $20/month. Here are reasons not to buy it. It doesn’t prevent ID theft, it only tells you after the theft has been committed – the proverbial shutting the barn door after the horse has run away. If you are really threatened with identity theft, you can put a security freeze on your credit files that actually prevents the ID theft by locking out access from the credit reports. Credit monitoring is not a good value proposition. You can check your credit report...

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Using “Rapid Recheck” to Correct Inaccuracies in Credit Reports

Using “Rapid Recheck” to Correct Inaccuracies in Credit Reports An inaccurate negative report on one’s credit report can slow down the process of getting a mortgage. The challenge is to get the credit bureaus to correct the report in a timely manner paving the way to obtaining a mortgage. CoreLogic Credco is a leading reseller of three-in-one or “trimerge” credit reports tailored for the mortgage industry. Credco has a service called Rapid Recheck that speeds up the bureau-level dispute process. Credco promises the process provides a faster way to update a borrower’s credit reports and get an updated FICO score....

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Insurance Companies Misuse Credit Scores to Set Prices on Car Insurance

Insurance Companies Misuse Credit Scores to Set Prices on Car Insurance Consumer Reports magazine September edition has a special report on how insurance companies use (really misuse) credit scores in determining how much to charge you for your car insurance. Each insurer cherry-picks about 30 of almost 130 elements in a credit report to come up with its own proprietary score. That score will be quite different than your FICO score. Customers with low credit scores are made to pay a lot more than customers with better scores. For example, a single driver in Kansas who incurred one moving violation...

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