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Credit1Solutions.com Education


Understand, Build and Manage

Your Credit Whether you’re buying a home, a car or applying for a credit card – lenders want to know the risk they’re taking by lending your money. Understanding how credit plays an important role in your life is an important step to improving your credit scores which can often help you qualify for better rates from lenders, which can save you money.

We believe the more insight you have about credit, the easier it is to strengthen your financial well-being. For more than a decade, Credit1Solutions.com has been America's number one Credit Repair provider of credit information. In addition to credit report repair, we offer help online to teach you how to successfully manage your credit rating.

Education

What's in a credit report?
What's a credit bureau?
What's included in a credit report?
What's NOT included in a credit report?
Types of information in a credit report
Where does the information come from?
Who can see my credit report?
What is a credit score?
How are credit scores calculated?
What is a "fico" score?


We give you the inside scoop...


First Things First Your Credit Report
FICO and You
Next Things Next Finding Your Score
Establishing Good Credit
Repairing Your Credit Score
Identity Theft and Your Credit
Raising Your Credit Score

FICO and You

Back in the 1960’s, a company called Fair Isaac devised a unique system to determine the credit worthiness of people who apply for loans. Through a complicated mathematical computation to lending (too complicated for this author!), they were able to study a persons credit history and assign them a number that would represent how likely it was that they would be able to repay a loan they were applying for.

Fair Isaac sparked a revolution by pioneering credit risk scoring for the financial services industry. This new approach to lending enabled financial institutions to improve their business performance and expand consumers’ access to credit. Today Fair Isaac’s FICO score is widely recognized as the industry standard for lenders.

The FICO score condenses a borrower’s credit history into a single number based on past credit history. Fair Isaac & Co. and the credit bureaus do not reveal how these scores are computed. The Federal Trade Commission has ruled this to be acceptable. The real truth is that even if we did know, we probably couldn’t calculate it ourselves anyway. Unless, of course, you have happen to be a mathematical genius!

Credit scores are calculated by using scoring models and mathematical tables that assign points for different pieces of information which best predict future credit performance. Developing these models involves studying how thousands, even millions of people have used credit.

Score model developers find predictive factors in the data that have proven to indicate future credit performance. Models can be developed from different sources of data. Credit bureau models are developed from information in consumer credit bureau reports.

Fair Isaac has become so important in the financial industry that their word on your credit has become basically the final word. Why would banks and creditors place so much credibility into one company? The answer is simply because of their proven track record.