Finally, a turbulent year after being announced it looks like the big 3 credit bureaus, Experian, Trans-Union and Equifax are going to start implementing the new Fair Isaac FICO 08 credit score. The big question now is whether and how much credit repair is going to help you increase your score.
First of all what is FICO 08? This is the name given to the proprietary system used by Fair Isaacs to predict whether or not you would be a good credit risk. Based on this number, and other factors, the lender will make a decision on whether or not to offer you terms for your purchase.
To arrive at this number, Fair Isaac scours line item by line item as reported by the bureaus and runs this information through the FICO 08 proprietary system. Inherently then the more negative information that is being reported by the Equifax, Experian and Trans-Union the lower your credit score is going to be.
But, there is a way that you can improve your FICO 08 score, and that is to do some credit repair. credit repair is something that should be the forefront of everyones thought process. It has been estimated that 75% of credit reports contain serious, negative errors that should not be on the report. Think about that 75% of the people are going to have a lower FICO 08 credit score because the bureau is reporting information that shouldn’t be there.
It doesn’t have to be that way. Credit Repair relies on a number of Federal and State Laws that give the consumer the right to have removed from their credit report information that doesn’t meet the guidelines.
While, like with anything else in life, self help is an option for you, there are some real drawbacks. First, you have to learn all that there is to know about these Federal Laws and all of the legal loopholes that you have to jump through, then there is the time consuming aspect of drawing up the appropriate paperwork to work to eliminate the negative information, and then one of the most important parts is remembering to follow up in a consistent and meaningful way. Just like a diet, credit repair takes focus, dedication and determination.
If you aren’t inclined to go through the process yourself, and see it all the way through, there are some good alternatives. You want to make sure that if you are going to outsource your credit repair, you find an honest, reputable firm that has been around and knows the ins and outs. Fortunately, we found one and recommend you check them out, YourCreditAttorney.com. This consumer advocacy law firm has been performing credit repair for more than 7 years and has helped thousands with their credit repair and raising their credit worthiness. While there’s no magic bullet, at least you have someone to do the work for you and take on the boring, tedious and somewhat complex tasks, and for the small amount they charge, it seems well worth it to me.
So there you go, FICO 08 is finally here (maybe they should rename it to FICO 09), and now is the time to start your credit repair and increase your credit score. However you do it the benefits of an increased score will pay big dividends in this economy where your credit score means so much.
