MSI Credit | MSI Credit Repair | MSI Credit Solutions

Credit history and credit industry uses credit scores to determine whether to accept credit cards or mortgages. But what is a credit history, which is a credit score – and why are they so important? MSI Credit Repair breaks it down for you.

1. Lenders check the credit history. Before lending money, banks and other lenders to the credit history of consumer choice – to record whether you have paid the bill – to make sure that the borrower may be repaid. This information is contained in the history of consumer credit and loans, and the report, and will depend on the amount of credit available to you under any circumstances, such as interest rates.

2. One should add that consumers care about credit. Thus, not only to creditors who might be interested in using the latest credit. “The question of credit reports for consumers, because credit-based solutions,” says Susan Thomas, a representative of the credit bureau Experian. “If you are looking for credit – whether it be credit cards, personal loans, auto loans and mortgages – lenders want to know the level of credit risk,” says MSI Credit Repair. “In other words:” If I give the man credit card or loan, and how it is likely that I pay on time? ”

3. Credit bureau to monitor the problem of sampling. The three main credit agencies in the United States are Experian, Equifax and TransUnion. These companies keep track of how you have served as borrowing money, for example, whether to pay back in time, that you still owe money, how much you still owe. From this information? “We get data on the public record, as well as companies that have a relationship with consumers and credit reporting agencies (ie, existing creditors and companies with customers who apply for credit and collection companies),” Thomas said Experian e-mail.

4. Credit and includes several types of data. Experian, the representative explained that the consumer credit report consists of four types of data on the borrower: identification information (including name, address, telephone number, Social Security number, birth date and name of wife), your account history (individual account information, such as opening date or the amount of credit balance in the case of monthly payment and the date of payment) data from public records (eg, federal records on bankruptcy, tax, money, and of late payments and child support), credit history and report on the investigation.

5. Some of the information, credit report may be incorrect. View your credit report may show that it contains incorrect information. It is important to correct these errors, because it can weaken your ability to borrow money. If you find errors in your credit report, and make them apply to the Council of the loan, which includes errors and misleading information provided to creditors.

6. Credit report data to calculate the credit and risk assessment. Points as the average score, the sum of all number one in your school, your loan amount on the extent of your history of borrowing. Teachers look at the global program of action to understand when you read about the student, lenders look at your credit rating to determine how to read about the borrower. “Credit scoring is the number, aggregate data on credit risk, which is based on a snapshot of your credit report at a particular time,” says Watts. “Credit scoring helps lenders evaluate your credit report and your credit rating.”

MSI Credit Repair can help you make sense of all of these details.

7. Adil Isaac FICO is the most widely used credit rating. Every year, billions of credit decisions are made in accordance with the assessment by FICO Fair Isaac, which uses a formula to convert the consumer credit history of the mysterious three-digit number between 300-850 points, which indicates that a large number of less risky borrowers. “But do not say whether a particular person is a” good “or” bad “customers,” said Watts. “While many lenders use FICO assessments, to help them make lending decisions, each lender has its own development strategy, including the level of risk is considered acceptable given the loan product, and there is no” one-Cut score “, which is used by all creditors,” says Watt .

8. Second credit rating. Isaac simply not the only company that offers credit ratings. For example, VantageScore, which began in March 2006, the loan is a joint project of the three major credit bureaus, Equifax, Experian and TransUnion. Despite the VantageScore model uses a unique scoring, VantageScore has some similarities with Fico: VantageScore is one of three digits (in the range of 501-990, representing the highest level of the lowest risk) is calculated from your credit card information in the report of the three major credit agencies. However, the result Fico even more widespread than creditors VantageScore in lending decisions. NonFICO credit accounts in some cases dimissively “in Fako” result.

9. Lines of credit history, credit score price. Act, Fair Credit Reporting Act, you must give consumers credit bureaus a free copy of the borrower’s credit report every 12 months. AnnualCreditReport.com give consumers the opportunity to apply for free credit report each of the three major credit agencies. At the same time, consumers are interested in the type of credit ratings needed to buy one, such as myFICO.com on the Internet. MSI Credit Repair suggest you take this very serious.

10. Service providers, employers may also consider your credit report. This is not only banks and companies issuing credit cards can be proud of themselves. “Most lenders, as well as many service providers and employers to provide information for use in evaluating applications for consumer loans and services and employment opportunities,” said Steven Katz, TransUnion, director of consumer education TrueCredit.com. In other words, credit history, effects on more than just a credit application – they may also question, if you buy a cell phone plan or look for work.

Deployment of the long-awaited update of the popular FICO credit rating of Fair Isaac Model, finally announced on 29 January but will probably have some changes before the consequences are real.

MSI Credit Repair: A new FICO model is designed to grade more accurately predict the behavior of borrowers – to provide two times better predictive power compared to previous changes in the pattern, “according to a press release. This should enable creditors to reduce further losses of existing borrowers who can not afford loans to customers and more profitable to continue.

This also helps protect against abuses of creditors “to neck” – when a consumer with bad credit trying to increase your credit score to be a registered user to borrowers with good credit credit card – although, since l ‘legal use of this method, for example, if the child’s parents to add them as an authorized user to provide credit history is a good start.

Management plans is still unclear
Officially called “Risk Assessment of FICO, Classic 08,” but better known as “FICO 08″, the first model will be offered to companies in the credit bureau TransUnion. Equifax is expected to adopt the model in the second quarter and has not yet announced plans for Experian. If you get added information about the time of its adoption 08, FICO, Experian refused to comment Wednesday on anticipation of litigation.

Under the new scoring model, called FICO lenders can improve their “risk estimates by major user groups. These groups of borrowers who have limited experience of the credit (or due to multiple accounts and loans to small “stories), customers who open new accounts and borrowers with negative elements of their credit history. Improved model, Fair Isaac, FICO 08 shows improved accuracy in credit by 15 percent, according to the press release.

Work on Overlay
From its name, FICO 08 was a long time. Review was founded to debut in 2007. However, application of the model has been postponed due to creditors deep concern the increase in credit to illegal “overlay” card, Ethan Dornhelm, a senior researcher at the Fair Isaac scoring solutions, said than through email.

MSI Credit Repair: Although there are similarities to an innocent time, a few years ago, private “credit repair” companies have increased benefit from this practice. For a fee, they will be more bad loans with good credit, bad as adding consumers to authorized users of the accounts of customers with good credit. Dornhelm explains that this development has led to delays of the first in June 2007, when Fair Isaac has decided to remove authorized user accounts from consideration in the FICO 08 model. “This requires a new analysis model of qualification that takes several months to complete,” he says.

However, in subsequent discussions, the main creditors and regulators have expressed their desire to further evaluate the FICO account information of users authorized by the husband and wife.

This led to a second lens FICO 08 July 2008, when he says Dornhelm, Fair Isaac, scientists have discovered a way to prevent the “Credit Repair overlay, while allowing legitimate use of the accounts of authorized user. Although their introduction has caused FICO 08 will again be delayed for some months, this decision supports the protection of creditors with federal regulations, without adding new requirements for lenders to take a new assessment, to alleviate two major creditors and banking regulators, “he said.

Several things are complicated by the fact that the three largest credit bureaus, which once was based on the FICO credit score to help create, marking product competition began known as the VantageScore March 2006. In response to the presentation of case the credit bureau FICO antitrust case in October 2006. The complaint against Equifax was launched in June 2008, according to the report from the Associated Press. At this time, the companies said they work FICO 08 model for customers, Equifax. Although less than one purpose, Fair Isaac, said he plans to continue fighting.

No big surprises
Borrowers should not expect big surprises of FICO 08.

Of course we are encouraged by the lenders to switch to FICO 08, as soon as possible …

MSI Credit Solutions: Consumers can expect FICO 08 to play a role in its debt after lenders to start using the new model. In the absence of a precise date for creditors to collectively change in FICO 08, the time varies a lot, “says Dornhelm. “Certainly we are encouraged by the lenders to switch to FICO 08, as soon as possible and offer our help and support our clients in order to facilitate this transition,” he said.

Under FICO 08, the borrowers’ credit ratings will vary from 300 to 850 people with high scores indicating a lower credit risk for lenders. FICO 08 will continue including the codes for the assessment of the causes of the minimum qualification criteria, and treatment research, as before.

Some borrowers may even get a small piece of the new model. Fair Isaac said that the new model focuses not only on qualification slipups with a small collection of the amounts initially presumed less than $ 100 are not included in the calculation of the result.

MSI Credit Repair: In general, the pattern of grade nine emphasized the length and breadth of consumer credit. MSI Credit Repair According Dornhelm E-mail: “In this way, users who have extensive experience with the combination of the two revolving (credit cards) and quotes (car loans, student loans, etc.) account, which paid in the term can be viewed more favorably than consumers FICO 08 uses a single type of credit accounts. He also said that consumers have a relatively large number of accounts opened, they are in good condition, is likely to look more favorably grade in the new model only a few user accounts associated assets at regular intervals.

Points for car, credit cards
In addition, TransUnion, said in early April will present two versions of the classic industry FICO Risk Assessment 08. They will provide companies that provide financing for automobiles and bank cards to consumers.