subject: Credit Score By Fico [print this page] The credit bureaus are the one who issue a credit report and on the basis of that a credit score. This is always based on the principles devised by FICO which is an organization formed for consumer protection and also for having a keen sight on the financial matters of creditors and debtors so as to make a comfortable exchange of money much easier. Now lets see what the essential components of this score are and how can you get it repaired in the case of a derogatory report or score.
It includes all the unpaid debts on your behalf, charge offs, any loans or delayed payments and most of all the used credit cards and its balance that is youre revolving balances. It also includes all the bills and taxes paid or due on you. This is definitely not a very simple method to be judged or modified so you have to understand all the things that are good for the improvement of credit score a key part of your dealings and payments so that at the end even after having a good credibility in the market you may not end up in a rejected loan or bankruptcy.
Here are the points that FICO rules and regulations allow you to repair your credit score and always remember for a convenient, legal and permanent solution of a credit problem you must be following these rules as per your right.
1.You can order one credit report per year to have a look about all the items included in this. This allows you t have an idea about the negative and positive items on your report. Asking for more than report will cause you some cost and obviously a bad impact on your credit score.
2.According to the rules after looking at your report you can claim all the negative items on it for verification. If the bureau finds it negative either theyll be removed resulting in a better credit report and credit score. This is the only way to improve your credit score.
3.As per rules any charge off or unpaid debt will remain on your report for seven years and will continuously be a source of damage to your score. To improve this part of your report youre only left with two options either pay it to improve score or talk to the creditor to get it removed from the report.
4.Bankruptcy is the worst thing to have on your credit report and this will remain on your report for at least 10 years making a permanent and uncorrectable damage to your credit score so try to avoid it only as far as possible.
