Payment History

Josh: Okay, the main parts of credit score, explain a little bit about payment history. Samira: There’s really three to four parts of a credit score. One of them is the payment history. It makes a lot of sense. If you’re paying late, it’s going to hurt your score. Some people don’t understand that. They…

Examples of different FICO considerations

Josh: Then in that vein, just to simplify things, a person with … An 18 year old or a 19 year old out of school with a couple hundred bucks credit card debt may be scored similarly to, for example, somebody with a mortgage and maybe a car payment and something, maybe a credit card…

What are the factors that Determine FICO?

Josh: You talk a little bit about reasonableness, age, and amount. What are the factors, I guess, what are the factors which are considered in a FICO score? Samira: Yeah, there’s different issues in the algorithm. For example, a person who’s 18 years old is not going to have the same credit needs as a…

Lowest and Highest FICO

Josh: FICO score. What is the lowest and the highest FICO score? Samira : The lowest score is a 350, and the highest score is an 850. Again, I had a 499. Anything below a 550 is you’re failing class. You’re not passing. Anything between a 600, 620, you’re getting a C-, maybe a C+.…

What is your process for credit recovery?

Josh: You have a good idea of what impacts the score you can kind of direct. Samira: Yes. Josh: How do you usually determine that or what have you seen? Just give me an example maybe of what you’ve seen in your practice that helps what your focus might be on? Samira: Okay. I take…

Are there different types of credit score?

3 Credit Reporting Agencies. Samira: Yes, there are different types of credit reports, and people tend to … It causes confusion because they think that if they have one score it’s the same in every category. It’s like, again, going back to the Ford dealership, they have trucks, they have vans, and they have small…

Why is FICO’s formula Secret?

Josh: Why is FICO’s formula a secret? Samira: It’s decided by the court system that it would be kept secret. As much as you have Coca Cola having a secret formula for their soda, Pepsi does exist. That’s where I kind of like to compare my services to. I don’t necessarily know the exact formula,…

How many credit bureaus are there ?

Samira: There are three credit bureaus: Equifax, Experian, and Transunion. Those are the three that handle the collection of credit data about you. They’re competitors. It’s like saying Toyota, Ford, and Chevrolet. Josh: What differentiates them? Samira: Size. Josh: Oh, really? Samira: That’s all. Their difference in size, and different systems in how to collect…

Affects of Balances on FICO

Josh: What is the effect of balances? Samira: Balances is another part of what is included in your credit score. Obviously, if you’re maxed out on your credit cards, it’s going to hurt your score. Why? You have borrowed too much money. They question whether or not you’re a good risk or you’re a high…

Different Types of Fico Scores?

Different Types of Fico Scores?

  Josh:                        Are there different types of Fico scores? Samira:                  Yes, because again we’re going to the same situation. If you’re going to apply for a credit card, the credit report is simpler so it’s going to give a different type of score than if you go apply for a home loan at a bank…