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[C1272]Credit Scores For Free

by Ian Webber, Ian

In a moment I will share some easy and practical ways to boost your credit scores. But before getting into these powerful credit repair techniques let's review a few facts. You might be surprised.

Phony Credit Score Alert

There are many reasons to check your credit scores; occasional monitoring, credit repair preparation, or in advance of making loan application. Most people that decide to check their credit scores on the web end up at one of the three credit bureau websites. The three major credit bureaus are Experian, Equifax, and TransUnion, and they all offer credit scores. Oddly enough, these credit bureau scores are not the same scores lenders use.

Think about this for a second. Say that you will be applying for a loan in the near future and want to see where you stand. You go online and buy your scores from Experian and they look great. So, off you go to get your loan, happy and confident. And the lender runs your credit and tells you that your scores are too low. In fact he shows you your scores and they are completely different from the scores you purchased from Experian. Get the picture. Crazy, huh? What's up with this?

FICO is the Score that Counts

Lenders use a credit scoring formula developed by Fair Isaac Corp called the FICO score. The three major credit bureaus provide these FICO scores to lenders, either directly, or through credit resellers. But if you or I purchase our scores from the credit bureaus we get something altogether different; we get the credit bureau's proprietary scores, which can be radically different from the FICO scores lenders see.

The reason is money. The credit bureaus make millions by selling these numbers which consumers erroneously believe are the real deal. This is a sadly deceptive business, and completely indefensible. There is only one place where you can get genuine FICO scores, MyFICO.com, the Fair Isaac website. No one else sells the genuine scores to consumers. Enough said. Let's do a little credit repair.

The Power of Balance Reduction

Recent FICO score modifications have put an increased emphasis on credit card balances. The importance of this cannot be overstated. Way too many people have been blindsided by precipitous drops in their scores due to high card balances. As crazy as it seems you can now have an immaculate payment history and have a crappy credit score. That's right, even a full decade of perfect credit will not offset the terrible effect of a maxed out balance. Here's the deal.

FICO measures the relationship between your balance and your limit. Specifically there are five trigger points to be aware of: 20, 40, 60, 80, and 100 percent usage. The lower the better, and if you go over the 100 percent mark you can expect a drop of 100 points in your score. Ouch. Anyway, the good news is that when you pay your balances down, your score will go up. If you want real score improvement, get your balances under the 20 percent mark and watch the credit repair magic happen. You'll love it.

Authorized User Accounts

Have your mom call one of her credit card companies and ask them to add you to her account as an authorized user. She should tell them that she wants you to have a card in case of emergencies. About 60 days later the account will show up on your credit report and the entire credit history of the card will be included in the calculation of your credit score. You do not have to use the card; in fact you can give it back to your mom when you get it.

This little credit repair trick can really boost your credit scores quickly. Just make sure that the history on the card is excellent. There would be no point in adding yourself to a bad card. And, as a little caveat, don't even think about purchasing an authorized card status online. The latest release of the FICO formula includes a block on purchased card memberships, so it would be a waste of money.

Consult a Credit Repair Expert

If you want more powerful credit repair tips that can really pump up your scores pick up the phone and call a professional. A credit repair professional will evaluate your three credit reports and customize a plan just for you. Credit score optimization can pay amazing dividends and is worth every bit of effort you put into getting it done right. Make the call today.

If you have no credit scores due to being new to the credit arena or you have just been a cash person all your life there is hope for you. There is one sure way to get the credit score calculated in about 4 to 5 months. In this article I will talk about how to establish good credit scores for a healthy credit report.

Secured Credit Cards
A lot of people don't know this but secured credit cards are the quickest way to establish credit. The reason for this is you give the bank money to secure credit that reports to all 3 credit bureaus. Typically you need about two cards to get the ball rolling. After 4 to 5 months of reporting "bam" you have credit scores. Typically creditors like to see 3 lines of credit reporting for a minimum of 12 months with good payment history. With this type of activity on your credit report, reporting to Experian, TransUnions and Equifax is one of the recipes for success. You will not achieve credit scores if you can not get someone to extend credit to you. That is the secret behind applying for a secured credit card to start the road to establishing this wonderful three digit life altering number.

Buy a house
Once you have about 12 months of rental history, with paying your utilities, and your secured credit cards on-time you will be able to buy a house. Of course you need to qualify for a loan with your current income. Getting a house is not as hard as one might think. If you have a two year work history and have 3 lines of credit like I mentioned earlier you can buy a home. Typically the type of loan you will qualify for is FHA. This is a great first time buyers program. Buying a house will help you get a mix of credit reporting on your credit report. This is around 10% of your overall score. When creditors extend credit to you they like to see that you own a home as opposed to renting.

Keep Credit Card Balances low.
Once you have got secured credit cards reporting on your credit report make sure you keep the balances below 30% of a your secure credit amount.
Example:
Secured Amount: $300.00
Balance at 30%: $90.00

This will keep your scores where they need to be once you establish them. After about 6 to 12 months you can request a limit increase. This is another sure way to increase your credit scores.

Get a car loan.
Getting a car is actually easier than getting just about any other credit. There are all types of lenders out there willing to loan you money on a car loan. You might try getting a loan for a car to establish credit as well. Most car lenders report the note to all 3 credit bureaus. This is another way to get your scores rolling as well. Make sure it's not some small tote the note establishment that does not report to the bureaus. Make sure the loan is reported to all 3 credit bureaus.

Conclusion: If you follow this advice you will be well in your way to establishing your credit scores. If you are unsure if you have scores get a copy of your free credit score report today.

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About Author

Both Ian Webber & Mike Clover are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Ian Webber has sinced written about articles on various topics from Home Management, Credit Loans and Free Credit Report Score. Ian Webber is an expert in consumer law and credit repair. Ian is a graduate of the London School of Economics and The University of Chicago where he earned his LLM. Ian consults with one of the leading online. Ian Webber's top article generates over 5400 views. to your Favourites.

Mike Clover has sinced written about articles on various topics from Free Credit Report Score, Marketing Campaign and Free Credit Report Score. About the Author: Mike Clover is the owner of .. Mike Clover's top article generates over 49500 views. to your Favourites.