Archive for February, 2009
New FICO Scoring System Developments In the Works
by Veronica on Feb.15, 2009, under Credit Repair
I was sent this by email from one of our associates, it is good info to forward others as to the severity of credit restoration and what measures should be taken in regards to it. It reads as follows:
I hate to be the bearer of bad news, but I would be irresponsible if I failed to relay the latest developments with the economy and your credit score.
To be brief, there are recent developments regarding your credit score. Specifically, two of the three major credit bureaus plan to adopt the new FICO credit scoring model sooner than originally planned – according to Fox News.
(As you know, the FICO model is the patented mathematical formula that lenders, employers, bankers, cell phone providers, insurance companies, etc. use to calculate your credit score.)
The Fair Isaac Corporation developed a new formula which considers factors – such as payment history and available balance – differently than before.
In other words, somebody with a 600 FICO score under the old model may now have a 550 score under the new model. This change could slash points from your score even without any bad behavior on your part!
Here are some of the highlights you need to be aware of (according to the WSJ):
- The new score further punishes those people who are already considered a credit risk, i.e. the people with a low score
- People who keep high balances on their credit cards will suffer while people with low balances will experience a rise in their score
- The score further penalizes people who have accounts that are past due by 90+ days
- Multiple delinquencies are considered even worse than under the old model
In sum, the new scoring model further punishes you if you already have a low credit score! (And in turn rewards the people with a good score.)
In other words, the new model widens the gap between the “Haves” and the “Have Nots”.
The “Have Nots” will struggle to get new credit, suffer through astronomical interest rates and fees, and have trouble getting jobs in an economy that is already hanging by a thread.
The “Haves” will enjoy lower interest rates, get the best deals on credit cards and loans, and sock away extra dough every month they save from their low interest mortgages.
I do not know of any better time than right now to take a careful inventory of the items on your credit reports. Any questionable item including 90+ day pays, charge offs, collections, judgments, and the like should be disputed and deleted ASAP.
Jack
Bye-Bye Debt!
by Veronica on Feb.02, 2009, under Debt Removal
Hello everyone! I hope you can take a few moments to learn how you can eliminate 100% of all Non-Secured Credit Card Debt, utilizing a network of attorneys and paralegals that will work on your behalf.
Do not be confused by certain companies that claim to eliminate your debt by negotiating down your balances and interest rates, then put you on a payment plan, it simply is not the same thing. That does nothing but continue to report negatively on your credit by letting the world know that you are on a settlement or consolidation plan with each of your creditors. The alternate is that with the Assume My Debt way, your unsecured debt can be eliminated and whatever negative marks those troublesome creditors are posting, will be corrected once your debt is gone.
Visit us at the link below and learn how to actually walk away from 100% of that debt. That’s right … Bye-bye Debt!
