Demystifying The Fico Score Breakdown Ant Its Relationship With Your Credit Report-Part 1

Demystifying the FICO Score Breakdown ant its Relationship with Your Credit Report-Part 1

Wellesley Clayton

info@restorecreditlegally.com

This is the first article in a series created to provide a bird's eye view of how the lender determineswhether or not to give the consumer access to credit. How the lenders decide who to lend moneydepends mainly on your FICO score. The FICO score is the measurement of how the lender decides therisk level of the consumer. If the consumer has a FICO score of 700 or higher the lender views the riskminimal and provides low interest rates and easy access to credit.

                Now, let's examine the first and the greatest part of the FICO score breakdown in an effort to provide the consumer with a greater understanding of how the lender uses the FICO score to make lending decisions. The effects of the lender decisions affect the ability of the consumer to gain access to the car or house needed to help support their families. Thirty-five percent of the FICO score is reflected in the payment history. Only payments later than 30 days past due affect the 35% payment history of the FICO score. Budgets and payments schedules are two critical tools in addressing payment history.

                Bankruptcies, foreclosures, school loans, and judgments are included in the calculation of payment history therefore defaulting or even falling behind has a greater impact on the 35% payment history part of the FICO score. The secret to improving the 35% payment history of your FICO score is to report as many accounts as possible that show paid as agreed. There are many businesses that do not report to the credit bureau. For example, video store, water bottle company, utility company, cable company do not report to the credit bureau however the good payment history  significantly improves your 35% payment history on your credit report.

                 For more information on how to report good payment history on your credit report contact info@restorecreditlegally.com. Negative public records or collections can also have a negative effect on the 35% payment history on the 35% payment history of your FICO score. It is best to keep an open line of communication with your creditor and negotiate to either lower payments or suspend payments  for at least three months if you have lost your job or faced another type of hardship.

                Delinquent accounts: total number of past due items, how long you've been past due, and how long you've been past due, and how long it's been since you had a past due payment have negative effects on your FICO score. Once again an open line of communication along with the art of negotiation is critical parts of preventing delinquent accounts from appearing on your credit report. Contact info@restorecreditlegally.com, and get information on how to negotiate with your creditor.

                A six year delinquent account will not have as much of an effect as a six month delinquent account. If you have been consistent with recent payments and you have older delinquent accounts then this can be used in part to negotiate a past hardship with your lender in order to present yourself as credit worthy. Demystifying the 35% payment history part of the FICO score breakdown and its relationship with your credit report greatly improves your relationship with your lender which in turn leads to improved FICO scores and greater access to credit.