Credit Reports
Understanding Credit Scores
Credit Definitions


In the beginning, credit cards were just charge accounts, offered by individual stores and only usable at those stores. The first credit card that could be used at multiple locations was offered by The Diner's Club in 1950. (full story)
In 1984, MasterCard was the first to use a hologram on its cards to deter fraud.

Why do I need to know my credit score?

Over 75 percent of mortgage lenders and 80 percent of the largest financial institutions use FICO scores in their evaluation and approvals process for credit applications."

While credit reports are a laundry list of your credit accounts, payment history and other information, your credit score - typically called a FICO score, named after the company that developed it, Fair Isaac & Company - is one number between 300 and 850. The higher your number, the better the chance you will make your loan payments and make them on time, lenders believe. It's much easier for lenders to look at this number than cull through your credit reports to come up with their own risk evaluation.

Although banks and other financial institutions have been using FICO scores for years, only in the past two years has the individual been allowed to learn his score. FICO resisted releasing scores for some time, afraid that consumers would use the data to artificially inflate their scores and thus make them less useful. However, pressure from Congress and consumer groups has changed that. But to most people, the revelation that they even have a FICO score is still news.

To clarify, other companies can provide you with their own versions of a credit score. However, FICO scores are above and beyond the most-used score. FICO is so big that it's used interchangeably with the term "credit score." Most people call credit scores a FICO score. Other companies' numbers can give you a sense of how your credit is viewed by lenders, but if you really want to know how lenders see you, you need to check your FICO score.

What's in a score?

About 60 percent of people have credit scores of 700 and above. The best number to have is 720 or above. If your score is 720, there's really no need to try and raise it because lenders lump you in the same category as folks with a score of say 800 or 820. At 720, you are viewed as a safe risk and typically receive a loan without problem and at a low interest rate. However, if your number is below 700, it's definitely worth your time to try and pump it up.

FICO score is determined: FICO Scores are calculated from a lot of different credit data in your credit report. This data can be grouped into five categories as outlined below. The percentages in the chart reflect how important each of the categories is in determining your FICO score. These percentages are based on the importance of the five categories for the general population. For particular groups - for example, people who have not been using credit long - the importance of these categories may be somewhat different.

Case Studies - Problems and Solutions Case Studies
  CreditFacs helped our first credit repair client in 1994, and since then our staff has worked with thousands of individuals with a wide variety of unique credit issues and goals. Creditfacs remains dedicated to helping consumers see significant credit report repair actions and higher credit scores via credit repair.

While credit problems as as unique as fingerprints, one thing remains clear... bad credit or a low credit score places a roadblock in the way of a goal or need. Whether you need a home mortgage, a car loan, credit cards , or the peace of mind that comes from a great credit rating - improving your credit score will improve your results.

Please feel free to explore some of our common credit repair success stories below. You'll find that while credit repair requires personalized service, bad credit can be fixed, average credit can become great credit , and most importantly, what you may think is hurting your credit score may not be the only area where Creditfacs can find room for credit score improvement.