Credit Reporting and Scoring
ABOUT CREDIT REPORTING AND SCORING
Below is a breakdown of the main factors used to determine your credit score. These are approximations. For example, major banks and other lenders may use their own systems to generate your credit score.
Payment History (35%)
- Payments due and past due, including how long they are past due
- Your payment history for specific accounts such as installment loans, mortgages, credit cards, and purchases or services
- The number of past due items on file (whether the information is accurate or not)
- Adverse public proceedings such as suits, liens, bankruptcy, wage garnishments, judgments, and accounts turned over to collection
- The time that has passed since any public proceedings
- The number of accounts paid per each agreement with dates and amounts paid
Amounts Owed (30%)
- Proportions and percentages of credit lines used
- How many accounts you have with current balances
- Amounts owing on such accounts
- Installments and the balance (proportion) compared to the original loan
- Amount owed on various and specific types of accounts
Credit History (15%)
- Time since accounts were applied for and opened
- Time since the last activity (payment or purchase) for each account
New Credit (10%)
- Accounts recently opened and the proportion of various types of accounts
- Number of recently opened accounts
- Recent credit inquiries from lenders including retail and credit agencies
- Time since your last credit inquiry
- Restoration and repair of positive credit
Types of Credit Used (10%)
- Types of credit: mortgages, installment loans, credit cards, retail accounts (stores) and consumer finance accounts and the prevalence (percentage) of the different types of credit used
Great American Credit Repair is well aware of how credit scores are calculated and take this information into consideration when deciding how to prepare disputes for individual items on your report. Following this approach, Great American Credit Repair is confident that you will achieve the highest credit score possible.
Here are some of the challenges you’ll face if you have poor credit:
$$$$$ Obtaining an auto loan
$$$$$ Getting a mortgage
$$$$$ Renting an apartment, house, condo or office
$$$$$ Securing a credit card or line of credit
$$$$$ Taking out a life or auto insurance policy
$$$$$ Paying bills online
$$$$$ Utilities (security deposits)
$$$$$ Renting a car
$$$$$ Employment history and securing work
Some Four and Five Letter Abbreviations You Should Know
Fair Credit Reporting Act (FCRA)
The Fair Credit Reporting Act gives you the right to review and correct your credit reports. It also controls the proper use of credit reports (determines for what purpose they can be used) and requires reporting agencies to maintain complete and accurate information (this does not mean they always do so).
Equal Credit Opportunity Act (ECOA)
Regardless of race, age, religion, gender or marital status, the Equal Credit Opportunity Act states that all consumers are given an equal chance to obtain credit and you cannot be denied credit based on the attributes above.
Fair Credit Billing Act (FCBA)
During the time a credit report in is dispute, creditors cannot report an associated account as delinquent. This act also requires the prompt correction of any errors on open-ended accounts.
Fair Debt Collection Practices Act (FDCPA)
This Act states that the collectors of loans cannot employ unfair, deceptive or abusive practices including anonymous phone calls, making threats, using obscene language, making a debt public, or carrying out any kind of harassing behavior.