Credit education provided by GreenLight . GreenLight Credit Services is devoted to helping our clients staying educated on credit report and scores. We believe the more you know about credit, the more you will have a better understanding on how it works. Below you will find some questions and answers regarding credit. If you have other questions, please feel free to contact us at 1-877-833-9776. Our credit experts are standing by.
A credit score is a numerical representation of your statistical likelihood to repay credit that is extended to you. Scores range from 350-850.
The credit score comes from a propriety model developed by Fair, Isaac & Company (FICO). The model takes all the detail account information from your report and processes it with different weights and scoring factors, resulting in the score.
The credit comes from the credit grantor – credit card companies, auto and home lenders and retail stores. Information is also obtained from court records which my include bankruptcy filings, tax liens and judgments.
Details such as on time and late payments, how late the payments are, how many accounts are open, the proportion of balances to credit limits on revolving accounts, whether there are collections, bankruptcies, judgments, liens and how new accounts are.
Your score is a “snapshot” at a specific moment. Your scores can change with new actions and with the passage of time. For example, the farther in the past derogatory information occurs, the less impact it has on the credit score.
No, paying off a collection account will not remove it from your report. Unless it was file in error a paid collection account will remain on your credit report for 7 years.
The bureaus do not rely solely on a consumer’s social security number to match the credit file. They also look at the name and address. This is where “junior” and “senior” files often get mixed.
For borrowers who share their homes with extended family, it is very possible for their credit to get mixed because the names will match (or be similar) and the addresses will match.
If this is the case you need to contact each credit bureaus that is reporting the incorrect information to have it corrected.
Your credit report contains things like your name and address, your loan information, credit limits, account names, credit history, credit inquiries, public record, collections, late payment information and of course, your credit score. It’s basically your entire financial history.
Your credit score is updated all the time- every time a balance changes or a new account is added (or removed), your score is changing. How often you can see your score updates depends. Some score trackers, such as CreditKarma, update once a week, while others update every 35 days
Every item on your credit report is factored into your credit score. They’re 100% connected. That’s why with credit repair, we focus on making sure your reports are fair, accurate and substantiated, by challenging creditors and the bureaus to verify questionable items.