Repairing Credit: What Is Included in the Supplied Score?

A thorough understanding of how a score is determined and what makes up the supplied history is important when repairing credit. The Fair Isaac Corporation or FICO calculation is the most commonly used resource by lenders. It is calculated by assessing your credit files and provides banks or card providers an idea of the risk associated with approving a request. You can be offered lower interest rates when the FICO is higher; however, negative items decrease this number and prevent acceptance. It is based on multiple portions of your financial past including:

  • Payment History
  • Utilization
  • Length of Use
  • Account Types
  • Inquiries

Payment history and utilization account for approximately sixty-five percent of this number. These areas are an important focal point when repairing credit for approval or to simply gain a higher number. The payment history includes general bills, cards, and loans. Missed due dates, delinquent accounts, or other negative reports cause decreases while timely reimbursement increases it. Since creditors look at the most recent information in this category, you can immediately begin turning around your score by simply bringing accounts current and continuing to pay on time.

Credit utilization is based on the amount of revolving debt and total credit you have available. The less debt you have, the better your score will be with high card balances or substantial outstanding accounts having negative results. Natural time progression improves this number as well and works in conjunction with all other components. Credit types make up approximately ten percent of this number. The more diverse they are over length of credit usage, the better your score will be.  

Repairing credit is an ongoing process that not only takes patience but can also require a lot of time. Continued monitoring is required once the desired number has been reached. You should review credit history reports frequently to take care of discrepancies quickly. Many resources, third party services, and software applications are available to help create a strong history.

TURNSCOR is the industry leading Credit Repair Software platform.

No need to invest hundreds or thousands of dollars to pay a lawyer or third party to do what you can do for yourself. This was the sole reason we developed TURNSCOR. The major credit bureaus and creditors would like for you to remain uninformed, thus allowing them to charge you higher rates of interest based on your personal credit scores. This reason alone makes it very difficult to build wealth without a high credit score. Get started today.