Painless Credit Repair

People often worry about Big Brother watching us, but don’t give a second thought to their credit record. Well, your credit history is the foundation of many things impacting your life. In fact, your financial profile can be boiled down to a FICO score.

So, just what is a FICO score? FICO is an abbreviation for Fair, Isaacs and Company, the business that came up with the calculation. Your FICO score reflects a calculation of various elements on your credit score ranking from the type of debt you have to payment histories.

Any person borrowing significant funds has run into their FICO score at one point or another. You might think you know everything there is about the FICO, but you don’t. This is because the calculation just changed.

FICO has always been criticized for being a bit unforgiving and structured. So, do the new modifications change this? Well, the issues being focused on are really more oriented towards the weight of certain events.

Historically, even one missed late payment could really hurt your FICO. The value given to one late payment was so high, that there was little difference between the score of a person who missed just one payment deadline and a person who missed many.

Fair Isaacs appears to have taken this one late payment criticism to heart. The new calculation process does not hammer a borrower who has one late payment. On the other hand, it reduces the FICO scores of multipayment problem borrowers even more.

When there is a system in place, there is always a way to trick it. The authorized user function of credit scores was one such trick. It has now been removed from all FICO calculations.

Time is on my side said the old song. Well, it really is in the new FICO. The longer you have credit that is positive, the more it impacts your credit score. If you are a parent, establishing credit for your kids is a wise move. Just hide the credit cards.

Whether you are just looking to get a credit card or something larger like a car loan or mortgage, your FICO score is going to play a big part in the process. Make sure you know what it is before you apply.